Managerial Accounting 2302 Trivia Exam! Quiz

22 Questions | Total Attempts: 108

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Managerial Accounting 2302 Trivia Exam! Quiz

. Are you preparing for the managerial accounting 2302 trivia exam? Understanding managerial accounting is important for managers as it gives them a chance to understand how to see financial information to make informed decisions about the business. Using the quiz will help to refresh your memory on what you have learnt so far. How about you try it out and see which chapters you need to learn some more about the subject.


Questions and Answers
  • 1. 
    The two basic types of cost accounting systems are:
    • A. 

      Job order costing and perpetual costing

    • B. 

      Job order costing and customized product costing

    • C. 

      Job order costing and customized service costing

    • D. 

      Job order costing and process costing

    • E. 

      Job order costing and periodic costing

  • 2. 
    Omega Contractors manufactures each house to customer specifications. It most likely would use:
    • A. 

      Process costing

    • B. 

      A periodic inventory system

    • C. 

      Unique costing

    • D. 

      Job order costing

    • E. 

      Activity-based costing

  • 3. 
    A job cost sheet shows information about each of the following items except:
    • A. 

      The direct labor costs assigned to the job

    • B. 

      The name of the customer

    • C. 

      The costs incurred by the marketing department in selling the job

    • D. 

      The overhead costs assigned to the job

    • E. 

      The direct materials costs assigned to the job

  • 4. 
    The job order cost sheets used by Greene Company revealed the following: Job. No. Bal., May 1 May Production Costs 134 $ 1,700 $ 0 135 1,200 300 136 0 900
    • A. 

      $3,200;$900

    • B. 

      $2,900;$1,200

    • C. 

      $1,200;$2,900

    • D. 

      $1,700;$1,200

    • E. 

      $4,100;$0

  • 5. 
    Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor. The job was not finished by the end of the month but needed an additional $3,000 of direct materials and additional direct labor of $6,500 to finish the job in October. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the total cost of the job when it is completed in October?
    • A. 

      $16,000

    • B. 

      $22,500

    • C. 

      $37,000

    • D. 

      $26,500

    • E. 

      $32,000

  • 6. 
    The balance in the Work in Process Inventory at any point in time is equal to:
    • A. 

      The costs for jobs finished during the period but not yet sold

    • B. 

      The cost of jobs ordered but not yet started into production

    • C. 

      The sum of the costs for all jobs in process but not yet completed

    • D. 

      The costs of all jobs started during the period, completed or not

    • E. 

      The sum of the materials, labor and overhead costs paid during the period

  • 7. 
    The Work in Process Inventory account for DG Manufacturing follows. Compute the cost of jobs completed and transferred to Finished Goods Inventory. Work in Process Inventory Beginning WIP 4,500 Direct materials 47,100 Direct labor 29,600 Applied Overhead 15,800 Total Manufacturing Costs 97,000 To Finished Goods ? Ending WIP 8,900
    • A. 

      $97,000

    • B. 

      $105,900

    • C. 

      $88,100

    • D. 

      $95,200

    • E. 

      $92,500

  • 8. 
    A company's overhead rate is 60% of direct labor cost. Using the following incomplete accounts, determine the cost of direct materials used. Work in Process Inventory Beginning WIP 100,800 Direct Materials ? Direct Labor ? Applied Overhead ? To Finished Goods ? Ending WIP 131,040 Factory Overhead 100,800 90,720 Finished Goods Inventory Beginning FG 118,200 324,800 301,000 Ending FG 142,000
    • A. 

      $106,400

    • B. 

      $113,120

    • C. 

      $30,240

    • D. 

      $211,680

    • E. 

      $324,800

  • 9. 
    A company has an overhead application rate of 125% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $30,000?
    • A. 

      $5,000

    • B. 

      $16,000

    • C. 

      $25,000

    • D. 

      $37,500

  • 10. 
    CWN Company uses a job order costing system and last period incurred $80,000 of actual overhead and $100,000 of direct labor. CWN estimates that its overhead next period will be $100,000. It also expects to incur $125,000 of direct labor. If CWN bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be:
    • A. 

      75%

    • B. 

      80%

    • C. 

      107%

    • D. 

      125%

  • 11. 
    The B&T Company's production costs for May are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production facility, $800; factory heat, lights and power, $1,000; and insurance on plant and equipment, $200. B&T Company's factory overhead incurred for May is:
    • A. 

      $2,000

    • B. 

      $6,500

    • C. 

      $8,500

    • D. 

      $21,500

    • E. 

      $36,500

  • 12. 
    If overhead applied is less than actual overhead incurred, it is:
    • A. 

      Fully applied

    • B. 

      Under applied

    • C. 

      Over applied

    • D. 

      Expected

  • 13. 
    The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as:
    • A. 

      Adjusted overhead

    • B. 

      Estimated overhead

    • C. 

      Predetermined overhead

    • D. 

      Under applied overhead

    • E. 

      Over applied overhead

  • 14. 
    • A. 

      Over applied by $20,000

    • B. 

      Over applied by $190,000

    • C. 

      Under applied by $20,000

    • D. 

      Over applied by $40,000

  • 15. 
    A method of assigning overhead costs to a product using a single overhead rate is:
    • A. 

      Plantwide overhead rate method

    • B. 

      Cost pool overhead rate method

    • C. 

      Departmental Overhead rate method

    • D. 

      Activity-based costing

    • E. 

      Overhead cost allocation method

  • 16. 
    Which of the following would not be considered a product cost?
    • A. 

      Direct labor costs

    • B. 

      Factory supervisor's salary

    • C. 

      Factory line worker's

    • D. 

      Cost accountant's salary

  • 17. 
    Which of the following are advantages of using the plantwide overhead rate method?
    • A. 

      The use of cost pools is considerably more accurate than other overhead allocations

    • B. 

      The necessary information is readily available

    • C. 

      It is more accurate than traditional overhead allocations

    • D. 

      Each department has its own overhead rate and its own allocation base

  • 18. 
    What are three advantages of activity-based costing over traditional volume-based allocation methods?
    • A. 

      Ease of use, more accurate product costing, and more effective cost control

    • B. 

      Fewer allocation bases, ease of use, and a direct correlation to production volume

    • C. 

      More accurate product costing, more effective cost control, and better focus on the relevant factors for decision making

    • D. 

      More accurate product costing, fewer cost objects, and a direct correlation to production volume

  • 19. 
    K Company estimates that overhead costs for the next year will be $2,900,000 for indirect labor and $800,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 80,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate?
    • A. 

      $.02 per direct labor hour

    • B. 

      $46.25 per direct labor hour

    • C. 

      $36.25 per direct labor hour

    • D. 

      $10 per direct labor hour

    • E. 

      $.10 per direct labor hour

  • 20. 
    Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year's expected activities are shown in the following table: Molding Finishing Direct labor hours 75,000 DLH 160,500 DLH Machine hours 98,000 MH 81,500 MH Tarnish Industries uses departmental overhead rates and is planning on a $1.80 per direct labor hour overhead rate for the finishing department. Compute the estimated manufacturing overhead cost for the finishing department given the information shown in the table.
    • A. 

      $41,667

    • B. 

      $288,900

    • C. 

      $256,800

    • D. 

      $146,700

  • 21. 
    1. A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:
    Which of the following statements is true regarding this company's activity rates?
    • A. 

      The activity rate under the activity-based costing system for Activity 3 is $2.00.

    • B. 

      The activity rate under the activity-based costing system for Activity 1 is $16.00.

    • C. 

      The activity rate under the activity-based costing system for Activity 2 is $1.50

    • D. 

      The activity rate under the activity-based costing system for Activity 2 is $19.50.

  • 22. 
    A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Annual production and sales level of Product A1 is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the approximate overhead cost per unit of Product A1 under activity-based costing?
    • A. 

      $8.00

    • B. 

      $9.00

    • C. 

      $10.00

    • D. 

      $12.00