Question 1

Individual product costs are relevant for managerial decision-making but irrelevant for preparing the financial statements.

Accepted Answer

A) True 
 B)False

Question 2

Overestimating a period's allocation base will understate the predetermined overhead rate.

Accepted Answer

A) True 
 B)False

Question 3

Process costing systems do not separate and record direct material and direct labor costs for each individual unit of product.

Accepted Answer

A) True 
 B)False

Question 4

The basic cost flow model is:

Accepted Answer

A)  EB + BB = TI + TO
B)  BB + EB = TI + TO
C)  EB - BB = TI - TO
D)  EB - BB = TO - TI
E)  BB -EB = TIF) B) and D)
G) A) and B)

Question 5

The basic cost flow model is:

Accepted Answer

A)  BB + TO - TI = EB
B)  BB + EB - TO = TI
C)  BB - TI - TO = EB
D)  BB + TI - TO = EBE) A) and B)
F) A) and C)

Question 6

The predetermined manufacturing overhead rate for the year was $14.00 per direct labor hour; employees were paid $17.50 per hour.If the estimated direct labor cost was $315,000,what was the estimated manufacturing overhead?

Accepted Answer

A)  $22,500
B)  $90,000
C)  $252,000
D)  $393,750E) None of the above
F) A) and C)

Question 7

The Transfers In (TI)costs in the basic cost flow model of a manufacturing firm are Direct materials,Direct labor and Manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 8

The two-stage cost allocation process allocates costs to multiple cost pools and then to individual cost objects using different allocation bases.

Accepted Answer

A) True 
 B)False

Exam 6: Fundamentals of Product and Service Costing

Process costing systems do not separate and record direct material and direct labor costs for each individual unit of product.

Correct Answer
verified

The predetermined manufacturing overhead rate for the year was $14.00 per direct labor hour; employees were paid $17.50 per hour.If the estimated direct labor cost was $315,000,what was the estimated manufacturing overhead?

Correct Answer
verified

Overestimating a period's allocation base will understate the predetermined overhead rate.

Correct Answer
verified

The Transfers In (TI)costs in the basic cost flow model of a manufacturing firm are Direct materials,Direct labor and Manufacturing overhead.

Correct Answer
verified

The basic cost flow model is:

Correct Answer
verified

The two-stage cost allocation process allocates costs to multiple cost pools and then to individual cost objects using different allocation bases.

Correct Answer
verified

Individual product costs are relevant for managerial decision-making but irrelevant for preparing the financial statements.

Correct Answer
verified

The basic cost flow model is:

Correct Answer
verified

Exam 6: Fundamentals of Product and Service Costing

Process costing systems do not separate and record direct material and direct labor costs for each individual unit of product.

Correct AnswerverifiedShow Answer

The predetermined manufacturing overhead rate for the year was $14.00 per direct labor hour; employees were paid $17.50 per hour.If the estimated direct labor cost was $315,000,what was the estimated manufacturing overhead?

Correct AnswerverifiedShow Answer

Overestimating a period's allocation base will understate the predetermined overhead rate.

Correct AnswerverifiedShow Answer

The Transfers In (TI)costs in the basic cost flow model of a manufacturing firm are Direct materials,Direct labor and Manufacturing overhead.

Correct AnswerverifiedShow Answer

The basic cost flow model is:

Correct AnswerverifiedShow Answer

The two-stage cost allocation process allocates costs to multiple cost pools and then to individual cost objects using different allocation bases.

Correct AnswerverifiedShow Answer

Individual product costs are relevant for managerial decision-making but irrelevant for preparing the financial statements.

Correct AnswerverifiedShow Answer

The basic cost flow model is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified