Question : 69.Refer to the information above. The amount of direct materials : 1259585

 

 

69.Refer to the information above. The amount of direct materials cost charged to completed jobs during March was:   

A. $20,000.

 

B. $50,000.

 

C. $30,000.

 

D. Some other amount.

 

 

 

70.Refer to the information above. The predetermined overhead application rate at Capri Boat is what percentage of direct labor costs?   

A. 38%.

 

B. 62%.

 

C. 260%.

 

D. 580%.

 

 

 

71.Refer to the information above. The amount of overhead costs applied to Job #007 during March was:   

A. $90,000.

 

B. $26,250.

 

C. $65,000.

 

D. $60,000.

 

 

 

72.Refer to the information above. The journal entry which accounts for the $300,000 transferred out of Work in Process account includes a debit of $300,000 to:   

A. Finished Goods.

 

B. Cost of Goods Sold.

 

C. Accounts Receivable.

 

D. Sales.

 

 

 

 

Canfield Construction applies overhead to its projects at a rate of $65 per direct labor hour. Laborers are paid an average rate of $30 per hour. The Jefferson Apartments project was charged a total of $1,200,000 in direct materials and $450,000 in direct labor costs.

 

73.Refer to the information above. Overhead applied to the Jefferson Apartments project amounted to:   

A. $450,000.

 

B. $650,000.

 

C. $975,000.

 

D. Some other amount.

 

 

 

74.Refer to the information above. The journal entry to transfer the completed Jefferson Apartments project to Canfield’s finished goods inventory would include:   

A. A debit to the Finished Goods Inventory account of $975,000.

 

B. A debit to the Finished Goods Inventory account of $2,625,000.

 

C. A debit to the Finished Goods Inventory account of $1,650,000.

 

D. A credit to the Work in Process Inventory account of $2,175,000.

 

 

 

75.Refer to the information above. The journal entry made by Canfield to record the sale of the Jefferson Apartments project to King Development Company for $5,250,000 would include:   

A. A debit to Sales of $5,250,000.

 

B. A debit to Cost of Goods Sold of $2,625,000.

 

C. A credit to Finished Goods Inventory of $975,000.

 

D. A debit to Finished Goods Inventory of $975,000.

 

 

 

 

76.Which of the following statements is true about activity-based costing?   

A. Only one activity should be used for a company.

 

B. Many different activity bases are used in applying overhead.

 

C. There can only be one cost driver.

 

D. Direct materials and direct labor are applied to work-in-process based upon cost drivers.

 

 

 

 

77.In an activity-based costing system, manufacturing overhead costs are divided into separate:   

A. Cost drivers.

 

B. Activity cost pools.

 

C. Activity bases.

 

D. Indirect cost centers.

 

 

 

 

78.Benefits of activity-based costing include all of the following except:   

A. More accurate measures of product costs.

 

B. More accurate evaluations of product profitability.

 

C. A better understanding of what “drives” manufacturing overhead costs.

 

D. More subjective product pricing decisions.