ACCT 302: Cost Accounting! Trivia Questions

9 Questions | By Etiennebuithanh | Last updated: Mar 21, 2022 | 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