Question : 16) Managers and accountants collect most of the cost information : 1212078

16) Managers and accountants collect most of the cost information that goes into their systems through ________.

A) an information databank

B) computer programs

C) source documents

D) time surveys

Answer the following questions using the information below:

For 2014, Bakers Manufacturing uses machine-hours as the only overhead cost-allocation base. The direct cost rate is $3.00 per unit. The selling price of the product is $20.00. The estimated manufacturing overhead costs are $240,000 and estimated 40,000 machine hours. The actual manufacturing overhead costs are $300,000 and actual machine hours are 50,000.

17) Using job costing, the 2014 actual indirect-cost rate is ________.

A) $6.00 per machine-hour

B) $5.80 per machine-hour

C) $6.50 per machine-hour

D) $6.75 per machine-hour

18) What is the profit margin earned if each unit requires two machine-hours?

A) 53.33%

B) 33.33%

C) 66.67%

D) 58.73%

19) Tiscara Company manufactures insulation and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $15 per direct labor-hour. The following data are obtained from the accounting records for June 2014:

Direct materials              $440,000

Direct labor (3,500 hours @ $11/hour)              38,500

Indirect labor              15,000

Plant facility rent              50,000

Depreciation on plant machinery and equipment              35,000

Sales commissions              10,000

Administrative expenses              25,000

The actual amount of manufacturing overhead costs incurred in June 2014 totals ________.

A) $278,500

B) $100,000

C) $80,000

D) $110,000

Answer the following questions using the information below:

Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 2014:

BudgetActual

Indirect costs$270,000$300,000

Annual salary of each attorney$100,000$110,000

Annual salary of each paraprofessional$ 29,000$ 30,000

Total professional labor-hours        50,000 dlh         60,000 dlh

20) What are the actual direct-cost rate and the actual indirect-cost rate, respectively, per professional labor-hour?

A) $27.00; $4.17

B) $29.80; $5.40

C) $32.40; $5.00

D) $27.00; $5.00

21) How much should the client be billed in an actual costing system if 200 professional labor-hours are used?

A) $5,000

B) $6,960

C) $7,480

D) $6,400

22) If indirect-cost rates were based on actual short-term usage, periods of lower demand would result in lower costs per unit.

23) In job costing, only direct costs are used to determine the cost of a job.

24) Indirect manufacturing costs should be allocated equally to each job.

25) Each cost pool may have multiple cost allocation bases.

26) Normal costing is a costing system that traces direct costs to a cost object by using the actual direct-cost rates times the actual quantities of the direct-cost inputs.