Question : 71.Company X manufactures 3-ring notebooks. All of the following considered : 1257045

 

 

71.Company X manufactures 3-ring notebooks. All of the following are considered indirect costs except:   

A. cardboard used in production of notebooks.

 

B. depreciation on manufacturing equipment.

 

C. factory utilities.

 

D. salaries for production supervisors.

 

 

72.Which of the following statement(s) is/are correct?I. A predetermined overhead rate is used to assign estimated overhead costs to work in process inventory.II. The predetermined overhead rate is calculated by dividing estimated overhead cost by the estimated volume or level of activity.III. The most common means of allocating overhead costs is to calculate a predetermined overhead rate at the end of the period.   

A. I

 

B. I and III

 

C. II

 

D. I and II

 

 

73.In which account is the actual amount of costs such as factory utilities and maintenance initially recorded?   

A. Work in process inventory

 

B. Manufacturing overhead

 

C. Raw materials inventory

 

D. Supplies inventory

 

 

74.For 2014, Kelly Company’s manufacturing overhead costs totaled $2,871,400. At the end of the period, manufacturing overhead had been underapplied by $5,310. As a result:   

A. cost of goods sold increases.

 

B. manufacturing overhead increases.

 

C. cost of goods sold decreases.

 

D. none of these.

 

 

75.If manufacturing overhead is underapplied, the entry to close the overhead account at the end of the accounting period will:   

A. decrease net income.

 

B. not effect total assets.

 

C. increase net income.

 

D. decrease cash flow from operating activities.

 

 

76.The reporting method that includes in the cost of inventory (and cost of goods sold) all product costs, including both fixed and variable costs is known as:   

A. variable costing.

 

B. total costing.

 

C. direct costing.

 

D. absorption costing.

 

 

77.In 2014, Guest Corporation estimated that total overhead cost would be $23,000, but actual overhead costs were $25,500, indicating Guest spent $2,500 more than expected for overhead cost. This type of variance is known as a(n):   

A. material variance.

 

B. activity variance.

 

C. volume variance.

 

D. spending variance.

 

 

78.Which of the following statements regarding the schedule of cost of goods manufactured and sold is correct?   

A. The schedule is an internal document which is not presented with the company’s financial statements

 

B. The schedule of cost of goods manufactured and sold shows the amount of cash paid for raw materials

 

C. The schedule of cost of goods manufactured and sold indicates the amount of direct raw materials used during the period

 

D. Both the schedule is an internal document which is not presented with the company’s financial statements and the schedule of cost of goods manufactured and sold indicates the amount of direct raw materials used during the period are correct.

 

 

79.Cost of goods sold is equal to:   

A. cost of goods manufactured – ending finished goods.

 

B. cost of goods available for sale – beginning finished goods.

 

C. cost of goods available for sale – ending finished goods.

 

D. cost of goods manufactured – beginning finished.