Question : Objective 4.5 1) The budgeted indirect-cost rate calculated ________. A) at the : 1212058

Objective 4.5

1) The budgeted indirect-cost rate is calculated ________.

A) at the beginning of the year

B) during the year

C) at the end of each quarter

D) at the end of the year

2) The difference between actual costing and normal costing is ________.

A) normal costing uses actual quantities of direct-costs

B) actual costing uses actual quantities of direct-costs

C) normal costing uses budgeted indirect-costs

D) actual costing uses actual quantities of cost-allocation bases

3) Which of the following statements about normal costing is true?

A) Direct costs and indirect costs are traced using an actual rate.

B) Direct costs and indirect costs are traced using budgeted rates.

C) Direct costs are traced using a budgeted rate, and indirect costs are allocated using an actual rate.

D) Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate.

4) When using a normal costing system, manufacturing overhead is allocated using the ________ manufacturing overhead rate and the ________ quantity of the allocation base.

A) budgeted; actual

B) budgeted; budgeted

C) actual; budgeted

D) actual; actual

5) Which of the following statements about actual costing is true?

A) Manufacturing costs of a job are available earlier under actual costing.

B) Corrective actions can be implemented sooner under actual costing.

C) Actual costing uses budgeted indirect-cost rates calculated annually.

D) Actual costing uses actual indirect-cost rates calculated annually.

Answer the following questions using the information below:

For 2014, Thomas Manufacturing uses machine-hours as the only overhead cost-allocation base. The estimated manufacturing overhead costs are $300,000 and estimated machine hours are 50,000. The actual manufacturing overhead costs are $420,000 and actual machine hours are 70,000.

6) Using job costing, the 2014 budgeted manufacturing overhead rate is ________.

A) $6.50 per machine-hour

B) $4.80 per machine-hour

C) $5.50 per machine-hour

D) $6.00 per machine-hour

7) What is the difference between the budgeted and the actual manufacturing overhead using job costing?

A) $0.20

B) $0.50

C) $1.00

D) $1.20

Answer the following questions using the information below:

Sky High Company has two departments, X and Y. The following estimates are for the coming year:

XY

Direct manufacturing labor-hours              20,000              40,000

Machine-hours              40,000              20,000

Manufacturing overhead              $200,000              $400,000

8) A single indirect-cost rate based on direct manufacturing labor-hours for the entire plant is ________.

A) $15 per direct labor-hour

B) $10 per direct labor-hour

C) $21 per direct labor-hour

D) $12 per direct labor-hour

9) The budgeted indirect-cost driver rate for Y based on the number of machine-hours is in excess of X by ________.

A) $15 per machine-hour

B) $10 per machine-hour

C) $20 per machine-hour

D) $8 per machine-hour

10) Kamrock applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of the Toy Mouse product. Estimates for this order include: Direct materials of $50,000; 600 direct manufacturing labor-hours at $20 per hour; and a 20% markup rate on total manufacturing costs.  Manufacturing overhead cost estimates for this special order total ________.

A) $46,000

B) $34,000

C) $36,000

D) $40,000