Question : 21) What the budgeted direct cost rate for dental assistant : 1186265

 

21) What is the budgeted direct cost rate for dental assistant labour?

A) $17.875 per hour

B) $16.125 per hour

C) $13.750 per hour

D) $11.250 per hour

E) $9.125 per hour

 

22) What is the budgeted direct cost rate per hour for office staff?

A) $11.250 per hour

B) $9.625 per hour

C) $7.500 per hour

D) $6.875 per hour

E) $6.125 per hour

 

23) What would be the percentage change in the budgeted direct cost rate if they consider hiring one more employee, as part of the office staff?

A) 3.0%

B) 2.0%

C) 1.0%

D) 0.5%

E) 0%

 

24) What would be the new budgeted direct cost rate if they decided to give all of the dental assistants a 10% raise?

A) $13.000 per hour

B) $12.375 per hour

C) $11.250 per hour

D) $9.875 per hour

E) $9.125 per hour

25) A Hospital uses a job cost system for all surgery patients. In February, the pre-operating room (PRE-OP) and operating room (OR) had budgeted allocation bases of 1,000 nursing hours and 500 nursing hours, respectively, and budgeted nursing overhead charges were $28,000 and $22,000, respectively. The hospital floor for surgery patients had budgeted overhead costs of $200,000 and 2,500 nursing hours for the month. PRE-OP, OR and the hospital floor have separate indirect cost pools. The hospital uses a budgeted overhead rate for applying overhead to patient stays. For patient Jones, actual hours incurred were six and eight hours, respectively, in the PRE-OP and OR rooms. He was in the hospital for 5 days (120 hours). Other costs related to Jones were:

 

 

PRE-OP

Costs

OR

Costs

In-room

Costs

Patient medicine

$200

$500

$2,400

Direct nursing time

1,200

1,750

2,700

 

Required:

Determine the budgeted overhead rate for the hospital floor for surgery.

A) $28.00

B) $44.00

C) $45.75

D) $47.75

E) $80.00

Use the information below to answer the following question(s).

 

Jim’s Computer Products manufactures keyboards for computers. In June, the two production departments had budgeted allocation bases of 10,000 machine hours in Department 1 and 5,000 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $34,500 and $37,500, respectively. For Job 501, the actual costs incurred in the two departments were as follows:

 

 

Department 1

 Department 2

Direct materials purchased on account

$66,000

$106,500

Direct materials used

19,500

8,100

Direct manufacturing labour

31,500

32,100

Indirect manufacturing labour

6,600

5,400

Indirect materials used

4,500

2,850

Lease on equipment

9,750

2,250

Utilities

600

750

 

Job 501 incurred 1,000 machine hours in Department 1 and 300 manufacturing labour hours in Department 2. The company uses a budgeted departmental overhead rate for applying overhead to production.

 

26) What is the budgeted indirect cost allocation rate for Department 1?

A) $3.45 per hour

B) $3.75 per hour

C) $6.90 per hour

D) $7.50 per hour

E) $8.00 per hour

 

27) What is the budgeted indirect cost allocation rate for Department 2?

A) $3.45

B) $3.75

C) $4.60

D) $7.50

E) $8.00

28) What is the total cost assigned to Job 501 based on normal costing?

A) $27,600

B) $91,200

C) $96,900

D) $123,900

E) $126,500

 

29) XYZ Company uses a normal job costing system. The direct labour rate is $27 per hour; and, the budgeted indirect cost allocation rate is $20 and uses direct labour hours as the cost allocation base.

 

Direct labour hours

1,000

Direct materials cost

$12,000

Marketing costs

$17,000

Non-manufacturing overhead

$9,000

 

What amount should be added to work-in-process control?

A) $12,000

B) $47,000

C) $59,000

D) $76,000

E) $85,000

 

30) In the service sector,

A) direct labour costs are always easy to trace to jobs.

B) a budgeted direct labour cost rate may be used to apply direct labour to jobs.

C) normal costing may not be used.

D) overhead is always applied using an actual cost allocation rate.

E) cost of goods sold includes beginning service inventory.