Related Mcqs:

1. The spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as __________?

   A. proration approach
   B. appreciation approach
   C. depreciation approach
   D. adjusted approach

2. The conversion cost is $2000 and the manufacturing overhead cost is $7000, then the direct manufacturing labor cost will be _________?

   A. $27,000
   B. $13,000
   C. $130,000
   D. $29,500

3. If the budgeted annual manufacturing indirect cost is $2250000 and the cost allocation base is 2800 labor hour, then budgeted manufacturing overhead rate will be ___________?

   A. $803.571 per labor hour
   B. $805 per labor hour
   C. $905 per labor hour
   D. $802 per labor hour

4. If an actual indirect cost incurred is $25000 and the indirect cost allocated is $23000, then the over allocated indirect cost would be ________?

   A. $48,000
   B. −$2000
   C. $2,000
   D. −$48000

5. If an actual indirect cost incur is $35000 and the indirect cost allocated is $43000, then the under allocated indirect cost will be __________?

   A. $78,000
   B. −$78000
   C. −$8000
   D. $8,000

6. The direct manufacturing labor costs is $40000 and manufacturing overhead cost is $7000, then conversion cost would be ____________?

   A. $47,000
   B. $33,000
   C. $57,000
   D. $18,000

7. If an actual manufacturing overhead costs is $225000 and actual total quantity of cost allocation base is 2500 labor hours, then the overhead rate will be __________?

   A. $60
   B. $90
   C. $80
   D. $70

8. If an actual manufacturing overhead costs is $485000 and actual total quantity of cost allocation base is 4500 labor hours, then the overhead rate would be _____________?

   A. 109.87
   B. $107.78
   C. $106.56
   D. $104.34

9. The direct manufacturing labor costs is added into manufacturing overhead cost to calculate ___________?

   A. transaction costs
   B. conversion costs
   C. resale costs
   D. merchandise costs

10. In throughput costing, the variable manufacturing overhead and direct manufacturing labor cost must be treated as ___________?

    A. accrual cost
    B. incurred cost
    C. period costs
    D. setup costs