ACCT 302: Cost Accounting! Trivia Questions

9 Questions | Total Attempts: 635

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ACCT 302: Cost Accounting! Trivia Questions - Quiz

Need some revision for the ACCT 302 on cost accounting? In recording financial transactions and concerning a business, there must be accounting processes involved, which include summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. Give the quiz a shot and keep an eye out for others to perfect your understanding before the exams!


Questions and Answers
  • 1. 
    Inventoriable costs are assigned to inventories under GAAP.
    • A. 

      True

    • B. 

      False

  • 2. 
    Mario Garcia is paid $20 an hour for straight-time and $30 an hour for overtime. One week she worked 42 hours, which included 2 hours of overtime. What is the overhead incurred to the company?
    • A. 

      $60

    • B. 

      $10

    • C. 

      $30

    • D. 

      $20

  • 3. 
    Dave Rigby is paid $30 an hour for straight-time and $40 an hour for overtime. One week he worked 45 hours, which included 5 hours of overtime, and 3 hours of idle time caused by material shortages. What is the direct labor cost incurred to the company?
    • A. 

      $1,260

    • B. 

      $1,400

    • C. 

      $1,310

    • D. 

      $1,210

  • 4. 
    Tony worked 48 hours last week for Bread Works Manufacturing. Of the 48 hours 5 hours were considered overtime, and also Tony was idle for 4 of the 48 hours due to an equipment malfunction. Tony makes $50 per hour and is paid $75 an hour (time and a half) for overtime. Tony's total compensation for that week would be ________, and assuming Bread Works charges overtime premium and idle time to indirect labor, the amount of this compensation credited to indirect labor would be ________.
    • A. 

      $2,950; $325

    • B. 

      $2,900; $280

    • C. 

      $2,750; $300

    • D. 

      $2,500; $350

  • 5. 
    Idle time wages consist of the wages paid to all workers (for both direct labor and indirect labor) in excess of their straight-time wage rates. 
    • A. 

      True

    • B. 

      False

  • 6. 
    Rework labor time is considered an overhead cost and not a direct labor cost. 
    • A. 

      True

    • B. 

      False

  • 7. 
    For external reporting purposes, indirect manufacturing costs must be allocated to individual units. 
    • A. 

      True

    • B. 

      False

  • 8. 
    Overtime premium is normally considered as a component of direct labor. 
    • A. 

      True

    • B. 

      False

  • 9. 
    If a worker is paid for 40 hours but is idle for 5 of those 40 hours, the 5 hours of idle time would be considered a component of direct labor. 
    • A. 

      True

    • B. 

      False

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