online exam

Part 1 of 1 – 45.0/
100.0 Points

Question 1 of 20
5.0/ 5.0 Points
Venus Crates manufactures custom crates for a variety of
uses. The following data have been recorded for Job 551, which was recently
completed. Direct materials used cost $7,200. There were 82 machine hours used
on this job. The predetermined overhead rate is $30 per machine hour used.
There were 175 direct labor hours worked on this job at a direct labor wage
rate of $24 per hour. What is the total manufacturing cost of Job 551?
A. $13,860
B. $4,200
C. $2,460
D. $7,457

Question 2 of 20
0.0/ 5.0 Points
Which term listed below describes a system where companies
purchase raw materials when needed in production and complete finished goods
when needed by customers?
A. Internal failure
costs
B. Backflush costing

C. Just-in-time
D. External failure
costs

Question 3 of 20
0.0/ 5.0 Points
If jobs have been under costed due to under allocation of
manufacturing overhead, then cost of goods sold (COGS) is too low and which of
the following corrections must be made?
A. Decrease COGS for
the amount of the under allocation
B. Increase COGS for
double the amount of the under allocation
C. Decrease COGS for
double the amount of the under allocation
D. Increase COGS for
the amount of the under allocation

Question 4 of 20
5.0/ 5.0 Points
A system that focuses on activities as the fundamental cost
object and uses the costs for these activities to compile indirect costs of
goods and services is:
A. appraisal costs.
B. value
engineering.
C. activity-based
costing.
D. prevention costs.

Question 5 of 20
5.0/ 5.0 Points
Which of these documents informs the storeroom to send
specific materials to the factory floor?
A. Receiving report
B. Bill of materials

C. Purchase order
D. Materials
requisition

Question 6 of 20
0.0/ 5.0 Points
In job costing, the journal entry to record the use of
direct materials on jobs is to debit work-in-process inventory and credit:
A. raw materials
inventory.
B. finished goods
inventory.
C. manufacturing
overhead.
D. wages payable.

Question 7 of 20
0.0/ 5.0 Points
Here are selected data for Sunny Sky Corporation.

Beginning raw materials inventory $37,000 Beginning
work-in-process inventory $62,200
Beginning finished goods inventory 58,300 Cost of
materials purchased 151,000
Cost of direct materials requisitioned 91,300 Direct
labor incurred 135,000
Actual manufacturing overhead 160,000 Cost of
goods manufactured 287,000
Cost of goods sold 265,000 Manufacturing overhead rate (% of direct labor) 125%
What is the ending work-in-process inventory balance?

A. $161,500
B. $170,250
C. $211,200
D. $229,950

Question 8 of 20
5.0/ 5.0 Points
Service firms develop a predetermined rate for some costs.
This rate is called the:
A. labor rate.
B. direct cost rate.

C. indirect cost
allocation rate.
D. hourly cost rate.

Question 9 of 20
5.0/ 5.0 Points
Watson’s Computer Company uses ABC to account for its
manufacturing process.

Activities Indirect
activity budget Allocation base (cost
driver)
Materials handling
$52,000 Based on number of
parts
Machine setup 30,000 Based on number of setups
Assembling 9,750 Based on number of parts
Packaging 15,300 Based on number of finished units
Watson’s Computer Company expects to produce 2,250
computers. Watson’s Computer Company also expects to use 13,000 parts and have
20 setups. The allocation rate for materials handling will be:
A. $4.
B. $6.80.
C. $23.11.
D. $7.01.

Question 10 of 20
0.0/ 5.0 Points
Showboat Corporation had actual manufacturing overhead costs
for the most recent year of $29,500. Manufacturing overhead is allocated using
a predetermined manufacturing overhead rate of $1.50 per direct labor hour.
Direct labor cost is $19 per hour. At the end of the year, Cabaret Corporation
found it had over allocated manufacturing overhead by $1,250. How much
manufacturing overhead was allocated in total during the year?
A. $28,250
B. $29,500
C. $30,750
D. $1,250

Question 11 of 20
0.0/ 5.0 Points
The predetermined indirect cost allocation rate is computed
as:
A. total estimated
indirect costs / total estimated amount of the allocation base.
B. total amount of
the allocation base / total estimated indirect costs.
C. total estimated
indirect costs + total estimated amount of the allocation base.
D. total amount of
the allocation base – total estimated indirect costs.

Question 12 of 20
5.0/ 5.0 Points
Which of the following is a lean strategy?
A. Group like
machines together.
B. Produce in
smaller batches than a traditional system.
C. Maintain a higher
level of inventory than a traditional system.
D. Lengthen setup
times relative to a traditional system.

Question 13 of 20
0.0/ 5.0 Points
The first step in developing an ABC system is:
A. calculate an
activity cost allocation rate for each activity.
B. allocate the
costs to the cost object using the activity cost allocation rates.
C. select an
allocation base for each activity.
D. identify the
primary activities and estimate a total cost pool for each.

Question 14 of 20
5.0/ 5.0 Points
Kramer Company manufactures coffee tables and uses an
activity-based costing system to allocate all manufacturing conversion costs.
Each coffee table consists of 20 separate parts totaling $240 in direct
materials, and each requires 5 hours of machine time to produce. Additional
information follows.

Activity Allocation
Base Cost Allocation Rate
Materials handling Number
of parts $2.00 per part
Machining Machine
hours $2.75 per machine hour
Assembling Number
of parts $1.00 per part
Packaging Number
of finished units $3.00 per
finished unit
What is the cost of machining per coffee table?
A. $15
B. $21
C. $13.75
D. $55

Question 15 of 20
5.0/ 5.0 Points
The benefits of using the ABC costing system are higher if
the company:
A. has high indirect
costs.
B. produces many
different products that use differing amounts of resources.
C. has high indirect
costs and produces many different products that use differing amounts of
resources.
D. produces only one
product.

Question 16 of 20
5.0/ 5.0 Points
The entry to record the purchase of raw materials on account
using a job costing system would include a:
A. credit to
work-in-process inventory.
B. debit to accounts
payable.
C. debit to
work-in-process inventory.
D. debit to raw
materials inventory.

Question 17 of 20
0.0/ 5.0 Points
Which of the following is a result of cost distortion?
A. Over costing of
all products
B. Under costing of
all products
C. Accurate costing
of all products
D. Over costing of
some products and under costing of other products

Question 18 of 20
0.0/ 5.0 Points
The cost of downtime caused by quality problems with the raw
materials would be classified as what type of cost?
A. Prevention cost
B. Appraisal cost
C. External failure
cost
D. Internal failure
cost

Question 19 of 20
0.0/ 5.0 Points
A(n) ________ is an estimated manufacturing overhead rate
computed before the year begins.
A. cost allocation
B. cost driver
C. predetermined
manufacturing overhead rate
D. actual
manufacturing overhead rate

Question 20 of 20
0.0/ 5.0 Points
Which term listed below describes costs incurred when the
company fails to detect poor quality goods or services before delivery to the
customer?
A. Internal failure
costs
B. Value-added
activity
C. External failure
costs
D. Just-in-time
production