Question

1. When calculating the pre-determined overhead rate, which amount should be the numerator?

Select one:

a. The estimated manufacturing overhead for the period

b. The difference between actual and applied manufacturing overhead

c. The applied manufacturing overhead for the period

d. The actual manufacturing overhead for the period

2. Which of the following is NOT true of period costs?

Select one:

a. They are recognized as an expense

b. They can be fixed or variable costs

c. They include the president’s salary

d. They increase the pre-determined overhead rate

3?Materials used in production are classified as "indirect materials" if they can:

Select one:

a. Not be traced to specific products

b. Increase gross profit

c. Be budgeted with accuracy

d. Be controlled by managers

4. Which costs increase the Work in Process account?

Select one:

a. Direct Materials, Direct Labor, and Applied Manufacturing Overhead

b. Indirect Materials, Direct Labor, and Estimated Manufacturing Overhead

c. Direct Materials, Indirect Materials, and Actual Manufacturing Overhead

d. Direct Materials, Direct Labor, and Estimated Manufacturing Overhead

5. The Zig-Zag Company manufactures zippers for many clothing manufacturers. Actual costs for 2018 were direct materials, $5,000; indirect materials, $1,600; direct labor, $12,000; and indirect labor, $4,000. Additional expenses for the year were factory utilities $3,500; depreciation of factory equipment, $1,300; advertising expense, $900; delivery expense on sales to customers, $1,700; and property taxes on factory buildings, $5,200. Which amount is the company's actual manufacturing overhead for 2018?

Select one:

a. $15,600

b. $11,600

c. $10,000

d. $17,300

Answer 1

1
The estimated manufacturing overhead for the period should be the numerator
2
They increase the pre-determined overhead rate is not true
3
Materials used in production are classified as "indirect materials" if they can Not be traced to specific products
4
Direct Materials, Direct Labor, and Applied Manufacturing Overhead increase the Work in Process account
5
Actual manufacturing overhead for 2018 = 1600+4000+3500+1300+5200= $15600