review 1 - ke quan tri

GA Co. produces washers and dryers in an assembly-line process. Labor costs incurred

during a recent period were: corporate executives, $500,000; assembly-line workers,

$180,000; security guards, $45,000; and plant supervisor, $110,000. The total of GA’s

direct labor cost was

• A. $110,000.

• B. $180,000

• C. $155,000.

• D. $235,000.

• E. $735,000

Which of the following employees would not be classified as indirect labor?

• A. Plant custodian.

• B. Salesperson

• C. An employee that packs products for shipment.

• D. Plant security guard.

• E. A line employee that produces parts for chairs using a saw and template

Which of the following costs is not a component of manufacturing overhead?

• A. Indirect materials.

• B. Factory utilities.

• C. Factory equipment.

• D. Indirect labor.

• E. Property taxes on the manufacturing plant.

The predetermined overhead allocation rate is calculated by dividing ________.

• A. the total estimated overhead costs by total number of days in a year

• B. the estimated amount of cost driver by actual total overhead costs

• C. the actual overhead costs by actual amount of the cost driver or allocation base

• D. the estimated overhead costs by total estimated quantity of the overhead allocation

  base

Ron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming 2 year to be $760,000 and $520,000, respectively. Ron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 16,000 hours and 8000 hours, respectively. What is the predetermined overhead

allocation rate? (Round your answer to the nearest cent.)

• A. $95.00 per machine hour

• B. $32.50 per labor hour

• C. $1.46 per labor hour

• D. $65.00 per machine hour

Remy Corporation estimated manufacturing overhead costs for the year to be $550,000.

Remy also estimated 7000 machine hours and 2000 direct labor hours for the year. It

bases the predetermined overhead allocation rate on machine hours. On January 31, Job

25 was completed. It required 5 machine hours and 4 direct labor hours. What is the

amount of manufacturing overhead allocated to the completed job? (Round intermediate calculations to the nearest cent and your final answer to the nearest dollar.)

• A. $79

• B. $707

• C. $393

• D. $1375

In a production cost report, ________ includes the number of units completed and transferred out of a process and the number of units remaining in ending WIP. The weighted-average method is used.

• A. total units estimated for

• B. total units budgeted for

• C. total units accounted for

• D. total units to account for

The Assembly Department of ByteSize, Inc., manufacturer of computers, incurred

$280,000 in direct material costs and $70,000 in conversion costs. The equivalent units

of production for direct materials and conversion costs are 1500 and 600, respectively.

The weighted-average method is used. The cost per equivalent unit of production (EUP)

for conversion costs is ________. (Round your answer to the nearest cent.)

• A. $116.67 per EUP

• B. $46.67 per EUP

• C. $466.67 per EUP

• D. $186.67 per EUP

Conversion costs are:

• A. direct material, direct labor, and manufacturing overhead.

• B. direct material and direct labor.

• C. direct labor and manufacturing overhead.

• D. prime costs.

• E. period costs.

What would the cost of fire insurance for a manufacturing plant generally be

categorized as?

A. Prime cost.

B. Direct material cost.

C. Period cost.

D. Direct labor cost.

E. Product cost. (MC as it is included in MOH)

• A. Prime cost.

• B. Direct material cost.

• C. Period cost.

• D. Direct labor cost.

• E. Product cost. (MC as it is included in MOH)