Question :
31) Which of the following NOT one of the reasons : 1196235
31) Which of the following is NOT one of the reasons that companies use an annual time period to compute the budgeted indirect-cost rate? 31) ______ A) the variable indirect-cost rate is too high B) the benefits of shorter periods do not outweigh the costs C) the budgeted quantity of the allocation base may fluctuate too much in periods shorter than one year D) a single annual indirect-cost rate helps to smooth out some of the erratic and period specific bumps E) the shorter the time period, the greater the seasonal influence
32) The first step in Job Costing is to 32) ______ A) identify the cost object. B) select the cost allocation base. C) identify the indirect costs. D) compute the rate per unit. E) identify the direct costs.
33) A Law Office employs full-time attorneys and five paraprofessionals. For 20×1 indirect costs were budgeted at $225,000, but actually amounted to $350,000.
Direct and indirect costs are applied on a professional labour-hour basis which includes both attorney and paraprofessional hours. Total budgeted labour-hours were 25,000; however, actual labour-hours were 30,000.
What is the actual indirect-cost rate, if a client used 5,000 professional labour-hours? 33) ______ A) $11.67 B) $7.50 C) $6.00 D) $5.00 E) $9.00
34) The following data were taken from the records of a manufacturing company. The company has been calculating the actual indirect cost rate using direct labour hours as the allocation base. Calculate the rate using a different allocation base.
Actual total indirect costs$1,152,000
Budgeted total indirect costs$1,216,000
Actual direct labour costs$3,200,000
Actual direct labour rate$50 per hour
Actual machine hours300,000 hours
# of employees32 34) ______ A) $7.89 B) $10.67 C) $60.67 D) $4.05 E) $3.84
35) Which of the following is not possible to use as a cost allocation base for manufacturing overhead? 35) ______ A) indirect labour hours. B) direct labour dollars C) direct material dollars D) direct labour hours E) direct labour hours or dollars
36) Job # WPP 298 has already been charged for DM of $4,606, DL of $1,579, and MOH of $3,960 based on machine hours.. If the Materials requisition record showed an additional purchase of brackets, quantity 10, unit cost of $16, the direct labour costs doubled, and the total machine hours are now 140 at $45 per machine hour, calculate the revised total job cost. (direct materials + direct labour + manufacturing overhead) 36) ______ A) $10,145 B) $11,884 C) $14,224 D) $14,064 E) $12,645
37) Why are longer time periods used to calculate indirect cost rates? 37) ______ A) each month does not have the same number of working days B) the shorter the period, the greater the influence of seasonal patterns in the level of costs, to spread monthly fixed indirect costs over fluctuating levels of output, and each month does not have the same number of working days C) the shorter the period, the lesser the influence of seasonal patterns in the level of costs D) to spread monthly fixed indirect costs over fluctuating levels of output E) the shorter the period, the greater the influence of seasonal patterns in the level of costs
38) Which of the following is NOT one of the steps used in assigning costs to individual jobs? 38) ______ A) identify the direct cost pools associated with the job B) select the cost-allocation bases to use in allocating indirect costs to the cost object C) identify the indirect cost pools associated with the job D) develop the rate per unit of the cost allocation base used to allocate indirect costs to the job E) identify the job that is the chosen cost object
39) John wants to identify the total cost for computing the corporate tax return he prepared for his client. Labour is the only direct cost at $50 per hour. Indirect costs are $60 per labour hour. What is the total direct cost, indirect cost, and job cost, respectively, if 15 hours are spent preparing the tax return? 39) ______ A) $800, $900, $1,440 B) $750, $800, $1,550 C) $750, $900, $1,650 D) $700, $850, $1,550 E) $800, $640, $1,440
40) Professional labour costs in a CGA firm are traced directly to the cost object of a given job. Generally, other operating costs are 40) ______ A) allocated to an intermediate cost object, assigned to a given auditor, and then traced to a cost pool which is then allocated to the final cost object, the given job. B) indirect costs which are allocated to a given job via an allocation base. C) first traced to a cost pool and then allocated to the final cost object, the given job. D) allocated directly to the final cost object, the given job. E) direct costs which are allocated to a given job via an allocation base.
