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From The Case, Wall Décor Calculates Predeterminated Overhead Rate As Total Estimated Manufacturing Overhead Cost Divided By Total Estimated Cost Of Prints. The Advantage Of Using The Cost Of Each Print As A

1822 words - 8 pages

MANAGEMENT ACCOUNTING
MULTIPLE CHOICE PRACTICE QUESTIONS FOR TOPIC 1

72. Both direct materials and indirect materials are
a. period costs.
b. merchandise inventory.
c. raw materials.
d. manufacturing overhead.

73. Into which one of the following accounts would the work of factory employees that can be physically and directly associated with converting raw materials into finished goods be categorized?
a. Direct labor
b. Indirect labor
c. Manufacturing overhead
d. Indirect materials

74. Which one of the following would not be classified as manufacturing overhead?
a. Indirect materials
b. Insurance on factory building
c. ...view middle of the document...

b. It must be physically associated with converting materials into products.
c. It must be materially associated with converting materials into products.
d. It must be periodically associated with converting materials into products.

81. Which one of the following is classified as direct labor?
a. Flour in a bakery
b. Wages of factory janitors
c. Bottlers of cola in a bottling company
d. Copy machine costs at a copy shop

82. In what category are lubricants that are used for wheel bearings on skateboards produced by a manufacturer categorized?
a. Selling expense
b. Indirect materials
c. Miscellaneous expense
d. Direct materials

83. Which one of the following is not another name for the term, manufacturing overhead?
a. Period costs
b. Factory overhead
c. Indirect manufacturing costs
d. Burden

84. Which product cost is most difficult to associate with a product?
a. Direct labor
b. Advertising
c. Direct materials
d. Manufacturing overhead

85. A company incurred manufacturing costs that were product costs, but they are not classified as either direct materials or direct labor. What are these called?
a. Manufacturing overhead
b. Selling and administrative expenses
c. Period costs
d. Marketing costs

86. Which one of the following costs is “inventoriable?”
a. Indirect material costs
b. Administrative costs
c. Period costs
d. Selling costs

87. Zirk, Inc. incurred cost of goods manufactured totaling $900,000, manufacturing overhead of $120,000, and direct materials totaling $400,000. How much is the amount of direct labor?
a. Cannot be determined from the information provided.
b. $380,000
c. $520,000
d. $900,000

88. Ranger Company reported total manufacturing costs of $65,000, manufacturing overhead totaling $13,000, and direct materials totaling $16,000. How much is direct labor cost?
a. Cannot be determined from the information provided.
b. $94,000
c. $29,000
d. $36,000

89. Which of the following are period costs?
a. Income taxes and indirect materials
b. Selling and administrative expenses
c. Indirect labor
d. Advertising and factory depreciation

90. How does a manufacturing company classify sales commissions?
a. As indirect labor
b. As product costs
c. As manufacturing overhead
d. As period costs

91. Which of the following are considered product costs?
a. Period costs and administrative expenses
b. Selling and administrative expenses
c. Inventoriable costs and plant assets
d. Direct labor costs and manufacturing overhead

92. Which one of the following is another name for product costs?
a. Inventoriable costs
b. Direct costs
c. Administrative
d. Sunk...

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