Question

Unit costs for each job are computed by dividing:

Question 22 options:

A)

Estimated total costs by planned units produced

B)

Cost of direct materials, direct labor, and overhead by number of units produced.

C)

Actual costs by actual units sold

D)

Estimated total costs by actual units produced

Suppose a management accountant becomes aware that a poor judgment he or she made has resulted in the loss of one of the company's clients. Is the accountant bound to share this information with the company? (The accountant doubts that the company will ever find out about it directly, besides the clients ships jobs oversees)?

Question 25 options:

A)

The management accountant is bound to communicate this error in judgment only if another client cannot be found

B)

The management accountant is bound to communicate unfavorable and favorable judgments made even if not directly asked.

C)

The management accountant is not bound to communicate this error.

D)

The management accountant is bound to honestly respond to inquiries regarding the adequacy of professional judgments but is not bound to communicate them if not directly asked.

In the long run, it is most important for a business to generate a positive cash flow from its:

Question 28 options:

A)

Investing activities

B)

Financing activities

C)

Operating activities

D)

All of these activities are of equal importance

he following budget data are available for Howers Company:

Estimated direct labor hours   16,000
Estimated direct labor dollars   $ 170,000
Estimated overhead costs    $ 207,200
If overhead is to be applied based on direct labor hours, the predetermined overhead rate per hour (rounded) is:

Question 30 options:

A)

$12.95

B)

$13.25

C)

$11.45

D)

$12.05

Answer 1

Question 22

Option C

In job costings, it is assumed that each job uses different quantities of resources, so costing each job at the same average production cost would be incorrect.

Therefore, Unit costs should be Actual Costs by Actual units sold/ Produced for the job

Question 25

Option B.

Management accountant is supposed to work for well being of the business & should provide all the relevant information to the management.

Thus, The management accountant is bound to communicate unfavorable and favorable judgments made even if not directly asked.

Question 28

Option C

The main idea behind running a business is to operate it effeciently and to make profit out of it.

Thus, it is most important for a business to generate a positive cash flow from its Operating Activities

Question 30

Option A

Overhead Rate

=

Estimated Overhead Costs

Estimated Labor hours

=

$207,200.00

16,000.00

=

$12.95