Job costing

MCQ. Budgeted total direct labor costs is divided to budgeted total direct labor hours to calculate

A. budgeted indirect labor cost rate

B. expected direct labor cost rate

C. budgeted direct labor cost rate

D. expected indirect labor cost rate

Answer C

MCQ. Budgeted direct labor hours are multiplied to direct labor cost rate to calculate

A. expected total direct labor cost

B. budgeted total direct labor cost

C. budgeted total indirect labor cost

D. expected labor hours

Answer B

MCQ. Term which describes assigning of indirect cost to any cost abject is classified as

A. cost allocation

B. sales tracing

C. sales allocation

D. cost tracing

Answer A

MCQ. Document which contains information about materials of specific product in specific
department is classified as

A. costing method

B. selling method

C. material acquisition method

D. None of above

Answer C

MCQ. Budgeted annual indirect cost is $60000 and budgeted annual quantity of cost allocation base
is $3600 then budgeted indirect cost rate is
 A. 15.67 per piece

B. 16.67 per piece

C. 14.67 per piece

D. 13.67 per piece

Answer B

MCQ. Under allocated indirect cost is also called

A. under applied indirect cost

B. under absorbed indirect cost

C. absorbed indirect cost

D. both a and b

Answer D

MCQ. In normal costing, situation in which allocated amount of indirect cost is greater than incurred
cost is considered as

A. incurred indirect cost

B. over allocated indirect cost

C. applied indirect cost

D. applied direct cost

Answer B

MCQ. Group of individual indirect cost item is classified as

A. direct pool

B. cost pool

C. indirect pool

D. item pool

Answer B

MCQ. Total indirect cost in pool by actual quantity of cost allocation base to calculate

A. actual manufacturing overhead rate

B. manufacturing overhead costs

C. overhead rate
 D. direct rate

Answer A

MCQ. Approach which yields benefits of normal costing and actual manufacturing overhead is
classified as

A. unadjusted allocation rate approach

B. adjusted budget rate approach

C. unadjusted budget rate approach

D. adjusted allocation rate approach

Answer D

MCQ. Process of assigning direct or indirect cost to any cost object is classified as

A. cost assignment

B. cost expectation

C. event assignment

D. probability assignment

Answer A

MCQ. Average unit cost applicable to each similar unit produced is classified as

A. per unit cost

B. per post cost

C. per price cost

D. application cost

Answer A

MCQ. Budgeted direct labor hours are 4550 and direct labor cost rate is $600 per labor hour then
total direct labor cost is

A. $4,730,000

B. $3,730,000

C. $2,730,000

D. $1,730,000

Answer C
MCQ. Overhead cost of operating a machine is $500000 for 1000 hours then cost allocation rate is

A. $1500 per machine hour

B. $250 per machine hour

C. $500 per machine hour

D. $1000 per machine hour

Answer C

MCQ. Single or multiple units of distinct service or product are classified as

A. cost

B. job

C. post

D. price

Answer B

MCQ. Document consist of information about labor time usage for specific job in specific
department is classified as

A. selling time record

B. labor time record

C. buying time record

D. direct time record

Answer B

MCQ. Budgeted total direct labor hours are 3800 and budgeted direct labor cost is $480000 then
budgeted direct labor cost rate is

A. $126.32 per labor hour

B. $128.32 per labor hour

C. $130 per labor hour

D. $132 per labor hour

Answer A

MCQ. Budgeted total direct labor hours are 5500 and budgeted direct labor cost is $755000 then
budgeted direct labor cost rate is

A. $138 per labor hour

 B. $137.27 per hour

C. $140 per labor hour

D. $142 per labor hour

Answer B

MCQ. In accounting system, document consisting all assigned cost to specific job is classified as

A. job cost record

B. job cost sheet

C. source document

D. both a and b

Answer D

MCQ. Manufacturing overhead cost allocated to individual jobs is classified as

A. manufacturing overhead allocated

B. cost overhead applied

C. manufacturing overhead applied

D. Both A and C

Answer D

MCQ. Budgeted annual indirect cost is $85000 and budgeted annual quantity of cost allocation base
is $7500 then budgeted indirect cost rate is

A. 112.34 per piece

B. 113.34 per piece

C. 111.34 per piece

D. 110.34 per piece

Answer B

MCQ. Costing and allocating situation in which indirect cost allocated amount is less than actually
incurred amount is classified as

A. over allocated budget

B. under allocated budget

C. under allocated indirect cost

 D. over allocated direct cost

Answer C

MCQ. Systematic way of linking group of indirect cost to a cost object is classified as

A. linked allocation base

B. direct allocation base

C. indirect allocation base

D. cost allocation base

Answer D

MCQ. In a normal accounting period, allocated amount of indirect cost is $700 and actual amount is
$800 then this is classified as

A. under allocated indirect cost

B. over allocated direct cost

C. over allocated budget

D. under allocated budget

Answer A

MCQ. Actual indirect cost incurred is $35000 and indirect cost allocated is $43000 then under
allocated indirect cost is

A. $78,000

B. −$78000

C. −$8000

D. $8,000

Answer C

MCQ. Actual manufacturing overhead costs is $225000 and actual total quantity of cost allocation
base is 2500 labor hours then overhead rate is

A. $60

B. $90

C. $80

D. $70

Answer B
MCQ. Costing technique in which actual direct rates are multiplied to quantity of direct cost inputs is
classified as

A. priced costing

B. actual costing

C. direct costing

D. indirect costing

Answer B

MCQ. In normal costing, manufacturing overhead allocated is also called

A. manufacturing overhead applied

B. labor overhead applied

C. cost overhead applied

D. budget overhead applied

Answer A

MCQ. Actual manufacturing overhead costs is $485000 and actual total quantity of cost allocation
base is 4500 labor hours then overhead rate is

A. 109.87

B. $107.78

C. $106.56

D. $104.34

Answer B

MCQ. Allocation approach in which all overhead entries are restated using actual cost rates in place
of budgeted rates is classified as

A. unadjusted budget rate approach

B. adjusted allocation rate approach

C. unadjusted allocation rate approach

D. adjusted budget rate approach

Answer B

MCQ. Budgeted cost in indirect cost pool is $144500 and total quantity of cost allocation base is
$165500 then budgeted indirect cost rate is
 A. 67.30%

B. 87.31%

C. 55.50%

D. 45.50%

Answer B

MCQ. Pocedure of assigning direct cost to any cost abject is classified as

A. sales allocation

B. cost tracing

C. cost allocation

D. sales tracing

Answer C

MCQ. Actual indirect cost incurred is $25000 and indirect cost allocated is $23000 then over
allocated indirect cost is

A. $48,000

B. −$2000

C. $2,000

D. −$48000

Answer C

MCQ. In an accounting system, document which supports journal entries is classified as

A. cost document

B. priced document

C. source document

D. direct document

Answer C

MCQ. Budgeted indirect cost arte is $115 and budgeted cost allocation base is $830 per hour then
annual indirect cost (budgeted) is

A. $93,450

B. $94,560
 C. $96,450

D. $95,450

Answer D

MCQ. Budgeted annual manufacturing indirect cost is $2250000 and cost allocation base is 2800
labor hours then budgeted manufacturing overhead rate is

A. $803.571 per labor hour

B. $805 per labor hour

C. $905 per labor hour

D. $802 per labor hour

Answer A

MCQ. In a normal accounting period, allocated amount of indirect cost is $2000 and actual amount is
$2200 then this is classified as

A. over allocated budget

B. under allocated budget

C. under allocated indirect cost

D. over allocated direct cost

Answer A

MCQ. 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

Answer A

MCQ. Budgeted indirect cost arte is $225 and budgeted cost allocation base is $750 per hour then
annual indirect cost (budgeted) is

A. $168,750

B. $148,570

C. $186,750
 D. $125,680

Answer A

MCQ. Budgeted cost in indirect cost pool is $139600 and total quantity of cost allocation base is
$155600 then budgeted indirect cost rate is

A. 69.72%

B. 79.72%

C. 99.75%

D. 89.72%

Answer D

MCQ. Total cost of producing similar products divided by number of units produced is a technique
classified as

A. sale costing system

B. job costing system

C. price costing system

D. process costing system

Answer D

MCQ. In normal costing, budgeted rate is multiplied to actual quantity which have been used as
allocation base to calculate

A. budget overhead applied

B. manufacturing overhead applied

C. labor overhead applied

D. None of above

Answer B

MCQ. Budgeted annual indirect costs are divided to budgeted annual quantity of cost allocation base
to calculate

A. expected indirect cost rate

B. expected direct cost rate

C. budgeted indirect cost rate

D. budgeted direct cost rate

Answer C

MCQ. Situation in which cost object is any job, customer or product is classified as

A. cost application base

B. sale application base

C. price application base

D. direct application base

Answer A

MCQ. Allocated indirect cost is $1500 and actual incurred indirect cost is $1200 then this is classified
as

A. applied indirect cost

B. applied direct cost

C. incurred indirect cost

D. over allocated indirect cost

Answer D