Please submit a separate reply sheet. with the replies carefully numbered as mentioned here.
1. At the beginning of the twelvemonth. fabrication operating expense for the twelvemonth was estimated to be $ 670. 530. At the terminal of the twelvemonth. existent direct labor-hours for the twelvemonth were 29. 400 hours. the existent fabrication operating expense for the twelvemonth was $ 665. 530. and fabricating operating expense for the twelvemonth was under-applied by $ 27. 550. If the predetermined overhead rate is based on direct labor-hours. so the estimated direct labor-hours at the beginning of the twelvemonth used in the preset overhead rate must hold been:
2. Carver Company produces a merchandise which sells for $ 40. Variable fabrication costs are $ 18 per unit. Fixed fabrication costs are $ 5 per unit based on the current degree of activity. and fixed merchandising and administrative costs are $ 4 per unit. A selling committee of 15 % of the merchandising monetary value is paid on each unit sold. The part border per unit is:
3. The Factory Overhead history in a occupation bing system is credited for the:
a ) Excess of applied operating expense over existent operating expense.
B ) Actual operating expense.
degree Celsius ) Applied operating expense.
vitamin D ) Indirect stuffs and indirect labour.
4. Himalyan Corp. sells a merchandise for $ 10 per unit. The variable disbursals are $ 6 per unit. and the fixed disbursals entire $ 35. 000 per period. By how much will sack runing income alteration if gross revenues are expected to increase by $ 40. 000?
5. If a company increases its merchandising monetary value by $ 2 per unit due to an addition in its variable labour cost of $ 2 per unit. the break-even point in units will:
6. The Work in Process stock list history of a fabrication company shows a balance of $ 18. 000 at the terminal of an accounting period. The occupation cost sheets of the two uncompleted occupations show charges of $ 6. 000 and $ 3. 000 for stuffs. and charges of $ 4. 000 and $ 2. 000 for direct labour. From this information. it appears that the company is utilizing a predetermined operating expense rate. as a per centum of direct labour costs. of:
7. Under normal fortunes the Work in Process history used in a occupation bing system: a ) Will include charges for direct labour. direct stuffs. and applied operating expense. B ) Will include merely charges for direct stuffs and applied operating expense. The labour is charged to write off as incurred. degree Celsius ) Will include charges for direct labour. direct stuffs. and existent operating expense. vitamin D ) Will include merely charges for direct labour and direct stuffs.
8. Sargent Company applies overhead cost to occupations on the footing of 80 per centum of direct labour cost. If Job 210 shows $ 10. 000 of fabricating overhead cost applied. how much was the direct labour cost on the occupation?
9. The theoretically right method of apportioning under- or overapplied operating expense is to: a ) Allocate the sum to cost of goods sold. B ) Allocate the sum to finished goods. degree Celsius ) Allocate the sum to work in procedure and finished goods. vitamin D ) Allocate the sum among work in procedure. finished goods. and cost of goods sold. 10. Lily Company has the undermentioned estimated costs for following twelvemonth: Direct stuffs: $ 30. 000
Direct labour: 110. 000
Indirect stuffs: 10. 000
Rent on mill equipment: 32. 000
Wage of production supervisor: 70. 000
Ad disbursal: 22. 000
Gross saless committees: 150. 000
The company estimates that 10. 000 direct labour and 16. 000 machine hours will be worked during the twelvemonth. If overhead is applied on the footing of machine hours. the preset overhead rate per hr will be:
11. With the occupation order cost system a recognition balance in the Factory Overhead history at the terminal of an accounting period would bespeak: a ) That an mistake in the occupation cost system has occurred.
B ) That the company lost money during the period.
degree Celsius ) The presence of underapplied operating expense.
vitamin D ) The presence of overapplied operating expense.
12. Braam Corporation uses direct labor-hours in its preset overhead rate. At the beginning of the twelvemonth. the estimated direct labor-hours were 11. 500 hours. At the terminal of the twelvemonth. existent direct labor-hours for the twelvemonth were 9. 700 hours. the existent fabrication operating expense for the twelvemonth was $ 143. 350. and fabricating operating expense for the twelvemonth was underapplied by $ 18. 220. The estimated fabrication operating expense at the beginning of the twelvemonth used in the preset overhead rate must hold been:
13. In the Vasquez Company. any over- or underapplied operating expense is closed out to Cost of Goods Sold. Last twelvemonth. the company incurred $ 27. 000 in existent fabrication operating expense cost. and applied $ 29. 000 of overhead cost to occupations. The beginning and stoping balances of Finished Goods were equal. and the Company’s Cost of Goods Manufactured for the twelvemonth totaled $ 71. 000. Given this information. Cost of Goods Sold. after accommodation for any over- or underapplied operating expense. for the twelvemonth must hold been:
14. Jensen Manufacturing uses a occupation order cost system. Overhead is applied at the rate of $ 20 per direct labour hr. Job # 777 includes $ 2. 000 of direct labour cost and 150 direct labour hours. $ 1. 500 of indirect labour cost was really incurred. The proper diary entry to enter the pay related cost is: a ) Debit Work in Process. $ 3. 500 ; Credit Wages Payable. $ 3. 500. B ) Debit Wage Expense. $ 3. 500 ; Credit Wages Payable. $ 3. 500. degree Celsius ) Debit Work in Process. $ 2. 000 ; Debit Factory Overhead. $ 1. 500 ; Credit Wages Payable. $ 3. 500. vitamin D ) Debit Work in Process. $ 3. 500 ; Credit Factory Overhead. $ 1. 500 ; Credit Wage Expense. $ 2. 000.
15. The Work in Process stock list history of a fabrication company shows a balance of $ 18. 000 at the terminal of an accounting period. The occupation cost sheets of the two uncompleted occupations show charges of $ 6. 000 and $ 3. 000 for stuffs. and charges of $ 4. 000 and $ 2. 000 for direct labour. From this information. it appears that the company is utilizing a predetermined operating expense rate. as a per centum of direct labour costs. of:
16. A company has two processing sections: Ten and Y. Which of the undermentioned entries or sets of journal entries would be used to enter the transportation between treating sections and from the concluding processing section to finished goods? a ) DR Work in Process Y CR Work in Process X. DR Finished Goods CR Work in Process Y| B ) DR Finished Goods CR Work in Process X. DR Finished Goods CR Work in Process Y| degree Celsius ) DR Finished goods CR Work in Process|
vitamin D ) DR Work in Process X CR Work in Process Y. DR Finished Goods R Work in Process X
17. In a procedure bing system. the journal entry used to enter the transportation of units from Department A. a processing section. to Department B. the following processing section. includes a debit to: a ) Work in Process – Department A and a recognition to Work in Process – Department B. B ) Work in Process – Department B and a recognition to Work in Process – Department A. degree Celsius ) Work in Process – Department B and a recognition to Materials. vitamin D ) Finished Goods and a recognition to Work in Process – Department B.
18. Fixed cost per unit decreases when:
a ) Production volume additions.
B ) Production volume lessenings.
degree Celsius ) Variable cost per unit lessenings.
vitamin D ) Variable cost per unit additions.
19. Prime cost + Factory overhead cost is:
a ) Conversion cost.
B ) Production cost.
degree Celsius ) Entire cost.
vitamin D ) None of given option.
20. When a fabrication procedure requires largely human labour and there are widely variable pay rates among workers. what is likely the most appropriate footing of using mill costs to work in procedure? a ) Machine hours
B ) Cost of stuffs used
degree Celsius ) Direct labour hours
vitamin D ) Direct labour dollars
21. Complete the followers tabular array
| Per unit| Sum
Fixed cost| Increase| Constant
Entire cost| Increase| Decrease
a ) Constant. Decrease
B ) Decrease. Decrease
degree Celsius ) Increase. Increase
vitamin D ) Increase. Decrease
22. For which one of the undermentioned industry would you urge a Job Order Costing system? a ) Oil Polishing
B ) Grain covering
degree Celsius ) Beverage production
vitamin D ) Law Cases
23. The difference between entire grosss and entire variable costs is known as:
a ) Contribution border
B ) Gross border
degree Celsius ) Operating income
vitamin D ) Fixed costs
24. If 120 units produced. 100 units were sold @ Rs. 200 per unit. Variable cost related to production & A ; merchandising is Rs. 150 per unit and fixed cost is Rs. 5. 000. If the direction wants to diminish gross revenues monetary value by 10 % . what will be the consequence of diminishing unit gross revenues monetary value on profitableness of company? ( Cost & A ; volume net income analysis maintain in your head while work outing it ) a ) Remains changeless
B ) Profits will increased
degree Celsiuss ) Company will hold to confront losingss
vitamin D ) None of the given options
25. Which of the undermentioned statements is ( are ) true?
a ) Companies that produce many different merchandises or services are more likely to utilize job-order bing systems than procedure bing systems B ) Job-order bing systems are used by industries merely and process bing systems are used by service houses merely c ) Job-order bing systems are used by service houses and procedure bing systems are used by makers vitamin Ds ) All of the given options
26. While ciphering the finished goods stoping stock list. what would be the expression to cipher per unit cost? a ) Cost of goods sold / figure of units sold
B ) Cost of goods to be manufactured / figure of units manufactured degree Celsiuss ) Cost of goods manufactured / figure of units manufactured vitamin D ) Total fabrication cost / figure of units manufactured
27. Which one of the undermentioned cost would non be termed as Merchandise Costss? a ) Indirect Material
B ) Direct Labor
degree Celsius ) Administrative Wages
vitamin D ) Plant supervisor’s Salary|
28. An illustration of an inventoriable cost would be:
a ) Transportation fees
B ) Ad circulars
degree Celsius ) Gross saless committees
vitamin D ) Direct stuffs
29. A company has the undermentioned cost informations for the month:
Conversion cost: Rs. 78. 900
Prime Cost: Rs. 115. 700
Get downing Work in Process Inventory: Rs. 4. 700
Ending Work in Process Inventory: Rs. 2. 800
Get downing Finished Goods Inventory: Rs. 27. 600
Ending Finished Goods Inventory: Rs. 29. 200
Manufacturing Overhead Costss: Rs. 14. 500
What is the Cost of Goods Sold for the month?
a ) Rs. 132. 100
B ) Rs. 116. 000
degree Celsius ) Rs. 130. 200
vitamin D ) Rs. 130. 500
30. Manson Company produces fishing boats. From the production supervisor’s position. depreciation on the mill is: a ) Uncontrollable and fixed.
B ) Uncontrollable and variable.
degree Celsius ) Controllable and fixed.
vitamin D ) Controllable and variable.