Question;uunit 2: Unit 2: Introduction to Job Costing, Activity Based Costing, Process Costing and Customer Profitability Analysis. - Quiz1.Volume-based cost accounting systems often do a poor job of product costing because they: (Points: 2) Use only volume-based cost drivers.Fail to recognize the impact of overhead in product cost.Often do not reflect changes in major cost categories caused by plant automation.Too often use an allocation base that does not have a cause-effect relationship to resource usage.2.ABC Company listed the following data for 2010:Budgeted Factory Overhead$1,044,000Budgeted Direct Labor Hours 72,000Budgeted Machine Hours24,000Actual Factory Overhead1,037,400Actual Direct Labor Hours72,000Actual Machine Hours 23,000Round calculations to two significant digits. Assuming ABC Company applied overhead based on direct labor hours, the company's predetermined overhead rate for 2010 is: (Points: 2) $43.50 per direct labor hour.$14.38 per direct labor hour.$44.24 per direct labor hour.$14.50 per direct labor hour.$14.41 per direct labor hour.3.The sum of units transferred out and ending inventory units, assuming no spoilage, determines the: (Points: 2) Units completed during the period.Units spoiled.Units transferred in during the period.Units accounted for.4.A time ticket: (Points: 2) Shows the time an employee worked on each job, pay rate, and total cost chargeable to each job.Shows the time that a department's employees worked on all jobs, the pay rate of each employee, and the total cost chargeable to each job.Shows the time an employee worked on each job and the total cost chargeable to each job only.Shows the time an employee worked on each job only.5.Which one of the following is the amount of factory overhead applied that exceeds the actual factory overhead cost? (Points: 2) Factory overhead applied.Actual factory overhead.Overapplied overhead.Allocated factory overhead.Underapplied overhead.6.Which method is a method used to prepare the departmental production cost report when using a process cost system? (Points: 2) LIFO method.FIFO method.Weighted production method.Production average method.Throughput average method7.The journal entry to record incurred direct labor would include a credit to: (Points: 2) Work-in-Process Inventory.Accrued Payroll.Factory Overhead.Materials Inventory.Finished Goods Inventory.8.The costs of operating a regional warehouse is an example of a: (Points: 2) Customer unit-level cost.Customer batch-level cost.Customer-sustaining cost.Distribution-channel cost.9.Normal spoilage is defined as: (Points: 2) Spoilage that occurs under efficient operations.Scrap.Uncontrollable waste as a result of a special production run.Spoilage that arises under inefficient operations.Controllable spoilage.10.Firms should use a process costing system when they produce products that: (Points: 2) Are semi-homogeneous.Pass through a series of manufacturing processes.Pass through only one department.Have small batch sizes.11.From the industries listed below, which one is most likely to use process costing in accounting for production costs? (Points: 2) Printing shop.Accounting firm.Electrical contractor.Steel mill.12.The number of the same or similar units that could have been produced given the amount of work actually performed on both complete and partially complete units is referred to as: (Points: 2) Physical units.Completed units.Equivalent units.Produced units.Units to account for.13.The major limitation of volume-based costing systems is the use of volume-based: (Points: 2) Criteria.Standards.Rates.Variances.Restrictions.14.Multistage ABC is used when: (Points: 2) There are many departments in the organization.Management wants a higher level of accuracy from the ABC calculations.There are complex relationships among the activities.To simplify the ABC calculations.There is no such thing as Multistage ABC.15.With the increase in competition over the past several years, traditional cost accounting systems have become less common in product costing because (Points: 2) They use volume-based cost drivers.They use structural cost drivers.They use executional cost drivers.They use indirect cost drivers.16.A Production Cost Report summarizes all except: (Points: 2) The physical units of a department.The equivalent units of a department.The costs incurred during the period.The costs assigned to both units completed and ending work-in-process inventories.The budgeted labor and overhead application rates.17.In a process costing system, the cost of abnormal spoilage should be: (Points: 2) Prorated between units transferred out and ending inventory.Included in the cost of units transferred out.Treated as a loss in the period incurred.Ignored in the period incurred.18.For job costing in service industries, overhead costs are usually applied to jobs based on: (Points: 2) Factory overhead.Indirect labor.Indirect materials.Direct labor-hours or dollars.Direct materials.19.Roussey Co. had the following information for the month of June:Work-in-Progress Inventory ? 6/12,000 UnitsUnits Transferred In10,000 UnitsWork-in-Progress Inventory ? 6/303,000 UnitsBeginning work-in-process inventory is 30 percent complete as to conversion. Ending work-in-process inventory is 40 percent complete as to conversion. Materials are added at the end of the process.The equivalent units for materials under the weighted-average method are calculated to be: (Points: 2) 12,000.10,000.9,600.9,000.7,000.20.Under conventional job costing, factory overhead costs are assigned to products or services using labor or machine hours which are: (Points: 2) Multiple cost pools.A homogeneous cost pool.Volume-based cost drivers.Nonvolume-based cost drivers only.21.Which one of the following is a high value-added activity? (Points: 2) Set up.Rework.Repair.Storage.Processing.22.Jackson Inc. listed the following data for 2010:Budgeted Factory Overhead$1,300,000Budgeted Direct Labor Hours 82,000Budgeted Machine Hours41,000Actual Factory Overhead1,201,000Actual Direct Labor Hours86,300Actual Machine Hours 39,400Round calculations to two significant digits. Assuming Jackson Inc. applied overhead based on machine hours, the firm's predetermined overhead rate for 2010 is: (Points: 2) $27.40 per machine hour.$29.38 per machine hour.$31.71 per machine hour.$33.50 per machine hour.$37.41 per machine hour.23.The three major differences between process and job order costing systems are those relating to: (Points: 2) Quantity, quality, and cost.Speed, accuracy, and design.Cost object, product or service variety, and timing of unit cost calculation.Responsibility for cost, system design, and authorization codes.24.Oregonian Fisheries Inc. processes king salmon for various distributors. Two departments are involved ? processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2010 are provided below:Percent CompletedTons of King SalmonMaterialsConversionWork-in-Progress Inventory ? 6/11,8009080Work-in-Progress Inventory ? 6/302,800 6040Started Processing During June7,800Total equivalent units for conversion under the weighted-average method are calculated to be: (Points: 2) 6,860 equivalent units.8,480 equivalent units.6,480 equivalent units.7,440 equivalent units.7,920 equivalent units.25.Roussey Co. had the following information for the month of June:Work-in-Progress Inventory ? 6/12,000 UnitsUnits Transferred In10,000 UnitsWork-in-Progress Inventory ? 6/303,000 UnitsBeginning work-in-process inventory is 30 percent complete as to conversion. Ending work-in-process inventory is 40 percent complete as to conversion. Materials are added at the end of the process.How many units were completed in June? (Points: 2) 12,000.10,000.9,600.9,000.7,000.
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