1.
Preparing budgets is an example of the managent function of:
A. 
B. 
C. 
D. 
2.
Which of the following groups are external users of financial information
A. 
B. 
C. 
Potential investors of the company
D. 
3.
Which of the following is TRUE?
A. 
Managerial accounting reports are audited by CPAs
B. 
Managerial accounting reports provide detailed internal information
C. 
Managerial accounting reports aid potential investors
D. 
Managerial accounting reports must follow GAAP
4.
The primary goal of financial accounting is to provide infomation for:
A. 
B. 
C. 
D. 
5.
Which of the following is an example of overhead in a factory?
A. 
Wages of machine operators
B. 
Wages of factory maintenance personnel
C. 
Wages of administrators in the corporate office
D. 
6.
Which of the following statements is true regarding the salary of the manager of a fast food hamburger restaurant?
A. 
The salary is a fixed cost that is directly traceable to the cost of making hamburgers
B. 
The salary is a fixed cost that is directly traceable to the cost of operating a specific restaurant
C. 
The salary is a variable cost that cannot be traced to the cost of operating a specific restaurant
D. 
7.
Use the following information for the next three questions:
Comfy Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:
Depreciation on sales office
$ 11,000
Depreciation on factory equipment
$ 16,000
Factory supervisor salary
$ 52,500
Sales commissions
$ 23,000
Lubricants used in factory equipment
$ 3,000
Insurance costs for factory
$ 21,000
Wages paid to maintenance workers
$ 115,000
Fabric used to upholster furniture
$ 7,000
Costs of delivery to customers
$ 9,000
Wages paid to assembly-line workers
$ 132,500
Lumber used to build product
$ 72,000
Utilities in factory
$ 44,500
Utilities in sales office
$ 26,500
Manufacturing overhead costs for Comfy Furniture Company totaled:
A. 
B. 
C. 
D. 
8.
When manufacturing products, which of the following is an example of an inventoriable product cost?
A. 
Depreciation on office equipment
B. 
Depreciation on store building
C. 
Depreciation on factory equipment
D. 
9.
Active Apparel Company reports the following data for its first year of operation (000s omitted).
Cost of goods manufactured
$500,000
Work in process inventory, beginning
0
Work in process inventory, ending
120,000
Direct materials used
85,000
Manufacturing overhead
100,000
Finished goods inventory, ending
72,000
What is the cost of goods sold?
A. 
B. 
C. 
D. 
10.
When manufacturing products, direct labor and direct materials are classified as:
A. 
Period costs and expensed when incurred
B. 
Period costs and expensed when the goods are sold
C. 
Product costs and expensed when incurred
D. 
Product costs and expensed when the goods are sold
11.
Rent on a factory building would be considered to be:
A. 
B. 
C. 
D. 
12.
Which of the following costs would appear on the income statements for both a merchandiser and manufacturer?
A. 
Cost of goods manufactured
B. 
C. 
D. 
13.
Manufacturing overhead would include:
A. 
Indirect labor costs only
B. 
All manufacturing costs except direct materials and direct labor
C. 
D. 
14.
Which of the following is most likely NOT to use process costing?
A. 
B. 
Ashley Custom Furnishings
C. 
D. 
15.
What type of product costing system would a manufacturer plywood include?
A. 
B. 
C. 
D. 
16.
Before the year began, Johnson Manufacturing estimated that manufacturing overhead for the year would be $160,000 and that 12,000 direct labor hours would be worked. Actual results for the year included the following:
Actual manufacturing overhead cost
$175,000
Actual direct labor hours
15,000
The predetermined manufacturing overhead rate per direct labor hour is closest to:
A. 
B. 
C. 
D. 
17.
Before the year began, Johnson Manufacturing estimated that manufacturing overhead for the year would be $160,000 and that 12,000 direct labor hours would be worked. Actual results for the year included the following:
Actual manufacturing overhead cost
$175,000
Actual direct labor hours
15,000
The amount of manufacturing overhead allocated for the year based on direct labor hours would have been:
A. 
B. 
C. 
D. 
18.
Use the following data to answer the next three questions:
Data below pertains to Garrett Company’s most recently completed fiscal year before any adjustments for overallocated or underallocated overhead were made:
Estimated manufacturing overhead
$ 240,000
Factory utilities
$ 29,100
Estimated labor hours
35,000
Indirect labor
$ 23,500
Actual direct labor hours
36,000
Sales commissions
$ 53,700
Estimated direct labor cost
$ 300,000
Factory rent
$ 49,200
Actual direct labor cost
$ 320,000
Factory property taxes
$ 28,100
Factory depreciation
$ 67,200
Indirect materials
$ 33,000
If the company allocates manufacturing overhead based on direct labor cost, what are the allocated manufacturing overhead costs?
A. 
B. 
C. 
D. 
19.
Use the following data to answer the next three questions:
Data below pertains to Garrett Company’s most recently completed fiscal year before any adjustments for overallocated or underallocated overhead were made:
Estimated manufacturing overhead
$ 240,000
Factory utilities
$ 29,100
Estimated labor hours
35,000
Indirect labor
$ 23,500
Actual direct labor hours
36,000
Sales commissions
$ 53,700
Estimated direct labor cost
$ 300,000
Factory rent
$ 49,200
Actual direct labor cost
$ 320,000
Factory property taxes
$ 28,100
Factory depreciation
$ 67,200
Indirect materials
$ 33,000
Actual overhead incurred during the year totaled
A. 
B. 
C. 
D. 
20.
Use the following data to answer the next three questions:
Data below pertains to Garrett Company’s most recently completed fiscal year before any adjustments for overallocated or underallocated overhead were made:
Estimated manufacturing overhead
$ 240,000
Factory utilities
$ 29,100
Estimated labor hours
35,000
Indirect labor
$ 23,500
Actual direct labor hours
36,000
Sales commissions
$ 53,700
Estimated direct labor cost
$ 300,000
Factory rent
$ 49,200
Actual direct labor cost
$ 320,000
Factory property taxes
$ 28,100
Factory depreciation
$ 67,200
Indirect materials
$ 33,000
At the end fo the period and before any adjustments are made, overhead would be
A. 
Underallocated by $25,900
B. 
C. 
D. 
21.
Mountain Made quilts had a predetermined overhead allocation rate of $5.00 per direct labor hour. If 5 direct laborers worked 1 ½ hours each to make a batch of 10 quilts, how much total overhead would be allocated to the batch of quilts?
A. 
B. 
C. 
D. 
22.
Assume that the total cost for the batch of 10 quilts made above in #10 was $400. If Mountain Made wants to earn a gross profit of 40% on each quilt, what price should be charged for each quilt?
A. 
B. 
C. 
D. 
23.
Job 2301 requires $12,000 of direct materials, $5,000 of direct labor, 500 direct labor hours, and 300 machine hours. Manufacturing overhead is computed at $15 per direct labor hour used and $12 per machine hour used. The total cost of Job 1547 is:
A. 
B. 
C. 
D. 
24.
If manufacturing overhead has been overallocated during the period, and most of the jobs produced have been sold, then:
A. 
Cost of goods sold should be decreased
B. 
Cost of goods sold should be increased
C. 
Finished goods inventory should be increased
D. 
Work in process inventory should be decreased
25.
The requisition of direct and indirect materials into production:
A. 
Reduced finished goods inventory
B. 
Reduces manufacturing overhead
C. 
Reduces raw materials inventory
D. 
Reduces work in process inventory