Question : 11. Which of the following would not be included a job : 1295563

11. Which of the following would not be included on a job cost report? 
A. Marketing costs
B. Direct labor costs
C. Manufacturing overhead costs
D. Direct materials cost

12. Peterson Upholstery manufactures custom furniture. Peterson has just completed a job which required 20 yards of fabric at a cost of $15 per yard. Out of the 20 yards of fabric, 18 yards actually became a part of the completed project. The remaining 2 yards were considered “normal spoilage” in the production process. Which of the following statements is correct regarding the fabric cost for this job? 
A. Direct materials cost of $270 should be allocated to the job.
B. Direct materials cost of $300 should be allocated to the job.
C. Indirect materials cost of $270 should be allocated to the job.
D. Indirect materials cost of $30 should be allocated to the job.

13. Which of the following statements is correct regarding “abnormal” spoilage of materials used for a particular job? 
A. It should be totally ignored as a product or period cost.
B. It should be treated the same as “normal” spoilage of materials.
C. It should be included in the direct materials cost.
D. It should be expensed as a period cost or included in manufacturing overhead.

14. Which of the following statements regarding “normal” spoilage of materials is not correct? 
A. It results from the regular operation of the production process.
B. It is treated as part of the job’s direct material cost.
C. It often results from improper handling and faulty equipment.
D. It is treated differently than abnormal spoilage.

15. Which of the following statements is correct regarding fringe benefits earned by employees whose regular wages are normally classified as direct labor? 
A. Fringe benefits should also be classified as direct labor.
B. Fringe benefits should be classified as indirect labor.
C. Fringe benefits should be classified as a period cost.
D. Fringe benefits should not be classified as either a product or period cost.

16. Which of the following should not be considered in the calculation of direct labor cost? 
A. The employer’s portion of social security and unemployment taxes.
B. The wage rate for each employee multiplied by the number of hours each employee works on each job.
C. Fringe benefits given to an employee who works on a job.
D. Overtime pay to an employee as a result of production problems not related to a specific job.

17. George Wilson is an assembly-line worker for Gantt Manufacturing. Gantt pays its employees weekly. The following is a breakdown of all the labor costs traced to George for the previous week:
 

Regular pay: 40 hours at $12 per hour

Overtime pay: 5 hours at $18 per hour

Fringe benefits received: $50 per week

Last week, George spent the entire 45 hours he worked on a special order “rush” job for a particular customer. The overtime was necessary in order to complete the job from start to finish within one week. Assuming that George was the only employee who worked directly on this job, how much direct labor cost should be assigned to the job? 
A. $530
B. $570
C. $620
D. $480

18. In job costing, which of the following types of costs is usually the most difficult to trace to a product? 
A. Labor cost of machine operator
B. Labor cost of factory supervisor
C. Wood used to build custom furniture
D. Rubber used in tire manufacturing

19. Cost allocation: 
A. is most often used for direct material costs.
B. is most often used for manufacturing overhead costs.
C. is most often used for direct labor costs.
D. is most often used for nonmanufacturing costs.

20. Which of the following costs is the most likely to be allocated to a product in a traditional job costing environment? 
A. Direct materials
B. Direct labor
C. Manufacturing overhead
D. Selling and administrative