AA025 lecture

1. what is the difference between normal costing and actual costing?

• A. direct material

• B. manufacturing cost

• C. applied manufacturing overhead

• D. direct labour

Answer explanation

2. 2. which components are true for normal costing

• A. actual direct material + actual direct labour + actual manufacturing overhead

• B. actual direct material - actual direct labour + actual manufacturing overhead

• C. actual direct material + actual direct labour + applied manufacturing overhead /

• D. actual direct material + actual direct labour - applied manufacturing overhead

3. which statement is true about actual costing

• A. The actual cost of direct materials and direct labour involved and applied manufacturing overhead cost

• B. avoid fluctuation problems of cost per unit output in every period that’s caused by multiple volumes of production

  units in a certain period.

• C. Uses actual costs of direct materials, direct labour and applied manufacturing overheads to numerous jobs supported at a predetermined overhead rate.

• D. The actual cost of direct materials and direct labour involved and actual manufacturing overhead cost applied or allocated to several types of jobs.

4. ....... is calculated of overhead cost allocated to a specific job estimation based on actual activity base.

• a.actual overhead

• b. Applied overhead

• c. Budgeted overhead

• d. under applied overhead

5. which of the following is the correct formula for predetermined overhead cost (POR)

• A.  actual annual overhead cost/actual annual operating activity

• B. budgeted annual overhead cost/ budgeted annual operating activity

• C. actual annual overhead cost/budgeted annual operating activity

• D. budgeted annual operating activity/budgeted annual overhead cost

6. which one is the most correct

• A. applied overhead > actual overhead = over-applied overhead

• B. applied overhead < actual overhead = over-applied overhead

• C. applied overhead > actual overhead = under-applied overhead

• D. none of above