Week 5 - MOH Part II

The direct allocation method:

• A. partially recognizes the services provided among support departments

• B. is conceptually the most advanced method  

• C. is conceptually the most precise method

• D. results in allocating support costs only to production departments

Which of the following statement is incorrect about the step-down allocation method:

• A. The sequence of allocation typically begins with the support department that provides the highest percentage of its total services to other support departments

• B. This method partially recognizes services that support departments provide to each other

• C. This method fully recognizes services that support departments provide to each other

• D. The choice of which support department to allocate first is important.

Which one is not the criterion used to rank the step of support department allocation?

• A. The amount of MOH cost of each support department

• B. The percentage of total services provided to other support departments

• C. The multiplication of A and B

• D. The number of production departments

On page 9, in the direct method table of example 1.3, which rate is used to allocate the Manufacturing Overhead (MOH) cost of the store department to other departments?

• A. 1

• B. 1/2

• C. 2/3

• D. 3/4

On page 9, in the step method table of example 1.3, which rate is used to allocate the Manufacturing Overhead (MOH) cost of the maintenance department to other departments?

• A. 2

• B. 2/3

• C. 4

• D. 6

On page 9, in the step method table of example 1.3, which rate is used to allocate the Manufacturing Overhead (MOH) cost of the store department to other departments?

• A. 1

• B. 2/3

• C. 4

• D. 6

On page 9, in the step method table of example 1.3, which of the following amount is the Manufacturing Overhead (MOH) costs after support cost allocation for the cutting department?

• A. 5,000 Baht

• B. 5,750 Baht

• C. 6,200 Baht

• D. 6,950 Baht

On page 10, which is the actual OH rate – Cutting and sewing in terms of the step method?

• A. Actual OH rate – Cutting is 34.75 Baht and Actual OH rate – Sewing is 127 Baht

• B. Actual OH rate – Cutting is 36.5 Baht and Actual OH rate – Sewing is 127 Baht

• C. Actual OH rate – Cutting is 34.75 Baht and Actual OH rate – Sewing is 130.5 Baht

• D. Actual OH rate – Cutting is 36.5 Baht and Actual OH rate – Sewing is 130.5 Baht

On page 16, in example F2.2 normal costing, which is the overhead rate – sewing

• A. 127 Baht/ hour

• B. 150 Baht/ hour

• C. 169.33 Baht/ hour

• D. 200 Baht/ hour

On page 18t no. 4, Which of the following  is closing balance of the MOH - sewing department?

• A. overapplied 1,300

• B. underapplied 1,300

• C. underapplied 7,300

• D. overapplied 7,300