Question 11 pts
Which of the following types of production would most likely use job-order costing?
Group of answer choices
Oil
Farming
Electrical power generation
Construction of custom homes
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Question 21 pts
The Silver Corporation uses a predetermined overhead rate to apply manufacturing
overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A
and on machine-hours in Dept. B. At the beginning of the year, the Corporation made
the following estimates:
Dept. A
Dept. B
Direct labor cost
$
60,000
$
40,000
Manufacturing overhead
$
90,000
$
45,000
Direct labor-hours
6,000
9,000
Machine-hours
2,000
15,000
What predetermined overhead rates would be used in Dept. A and Dept. B,
respectively?
Group of answer choices
150% and $5.00
67% and $3.00
67% and $5.00
150% and $3.00
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Question 31 pts
How does job-order costing differ from process costing?
(1) Under job-order costing, cost is accumulated by each job.
(2) Under process costing, cost is accumulated by each department.
(3) Company which provides customized service prefers process costing,
(4) Company which produces identical products prefers job-order costing.
Group of answer choices
Statement (1), (2) and (3) are correct.
Statement (1) and (2) are correct.
Statement (1) is correct
All the statements above are correct.
Statement (1), (2) and (4) are correct.
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Question 41 pts
Bims Corporation uses the weighted-average method in its process costing system. The
Assembly Department started the month with 2,000 units in its beginning work in
process inventory that were 70% complete with respect to conversion costs. An
additional 61,000 units were transferred in from the prior department during the month
to begin processing in the Assembly Department. There were 18,000 units in the ending
work in process inventory of the Assembly Department that were 60% complete with
respect to conversion costs.
What were the equivalent units for conversion costs in the Assembly Department for the
month?
Group of answer choices
45,000
77,000
55,800
54,400
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Question 51 pts
Which of the following statements concerning direct and indirect costs is NOT true?
Group of answer choices
A particular cost may be direct or indirect, depending on the cost object.
A direct cost is one that can be easily traced to the particular cost object.
The factory manager’s salary would be classified as an indirect cost of producing one
unit of product.
Whether a particular cost is classified as direct or indirect does not depend on the cost
object.
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Question 61 pts
How does managerial accounting differ from financial accounting?
(1) Managerial accounting provides information for managers to make decisions. In
contract, financial accounting provides information for investors and creditors to make
decisions.
(2) Financial accounting generates historical data. Managerial accounting generates
both historical and future data.
(3) Both managerial accounting and financial accounting are regulated by GAAP.
(4) Financial accounting provides reports on demand. In contrast, managerial
accounting provides reports periodically.
Group of answer choices
Only statement (1) is correct.
All the statements above are correct.
Statement (1), (2), and (4) are correct.
Statement (1), (2) and (3) are correct.
Both statement (1) and (2) are correct.
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Question 71 pts
Which of the following could be used as a basis to allocate service department costs?
Group of answer choices
Machine Hours
Direct Labor Hours
Square feet of building used
