Question : 58.              Hunter Corporation, a computer manufacturer, tests each completed computer : 1369982

 

 

58.              Hunter Corporation, a computer manufacturer, tests each completed computer before shipping it.  This is an example of what kind of cost?

A)product sustaining

B)facility sustaining

C)batch related

D)unit related

 

59.              Suranden Company manufacturers oil-drilling equipment.  The utilities costs incurred in machining the drilling equipment is an example of what kind of cost?

A)product sustaining

B)facility sustaining

C)batch related

D)unit related

 

60.  Paltrow Corporation applies unit-related overhead at the rate of $100 per direct-labor hour. If 3,000 direct labor hours were used, which of the following entries should be made?

A)debit to finished goods and credit to manufacturing overhead

B)debit to manufacturing overhead and credit to finished goods

C)debit to work-in-process and credit to manufacturing overhead

D)debit to manufacturing overhead and credit to work-in-process

 

61.  Reynolds Company has estimated its finished goods inventory-handling costs at $240,000.  It has determined that an appropriate cost driver is the number of units completed.  It estimates that 500,000 units will be completed this year.  If 40,000 units are completed during the current month, what amount of inventory-handling cost should be recognized?

A)$83,333

B)$24,000

C)$20,000

D)$19,200

 

62.              Winslett Company had a $34,000 beginning balance in its raw materials inventory and a $30,000 ending balance.  During the period $197,000 of raw materials was purchased.  What amount of raw materials was used?

A)$201,000

B)$197,000

C)$193,000

D)$    4,000

 

Use the following to answer questions 63-64:

 

Dodd Corporation used $90,000 of direct material, $112,000 of direct labor, and applied $104,000 of manufacturing overhead during July.  Its beginning and ending work-in-process and finished goods inventories were as follows:

 

 

Beginning inventory

Ending inventory

Finished goods

$34,000

$40,000

Work-in-process

46,000

38,000

 

 

 

 

63.              What was Dodd’s cost of goods manufactured for July?

A)$314,000

B)$306,000

C)$298,000

D)$390,000

 

64.              What was Lange’s cost of goods sold for July?

A)$320,000

B)$314,000

C)$308,000

D)$348,000

 

65.              The differences between standard and actual financial amounts of inputs are referred to as:

A)standard deviations

B)variances

C)appraisals

D)exceptions

 

66.              The standard cost for direct labor is $190,000 if the company produces 15,200 units of product. Actual direct labor cost to produce 15,800 units of product totaled $213,300. What is the standard cost for direct labor at the actual level of production:

A)$190,000

B)$197,500

C)$205,200

D)$213,300

 

67.   The standard cost for direct labor is $190,000 if the company produces 15,200 units of product. Actual direct labor cost to produce 15,800 units of product totaled $213,300. What is price variance and is it favorable or unfavorable?

A)$19,800 Unfavorable

B)$23,300 Unfavorable

C)$19,800 Favorable

D)$23,300 Favorable