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accounting 5 multiple-choice question




When the actual amount of overhead exceeds the amount of applied overhead, overhead is overapplied.;True;False;Predetermined overhead rates are based on actual cost (actual MOH and actual allocation base) and activity data.;True;False;Figurski Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Machining, $38,500, Order Filling, $23,000, and Other, $15,500. Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products.;Activity data appear below;The activity rate for the Order Filling activity cost pool under activity-based costing is closest to;$23.00 per order;$77.00 per order;$1.00 per order;$3.33 per order;Which statement about indirect costs is FALSE?;Today, indirect costs exceed 50% of total costs in many companies.;Some indirect costs are variable.;Managers can ignore indirect costs and make good operational decisions.;Indirect costs include labor costs that cannot be traced to a particular product.;In traditional cost systems, many complex products are overcosted and simple products are undercosted.;True;False


Paper#76021 | Written in 18-Jul-2015

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