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Costing-Variances,job costing, process costing etc.,

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Dear student,
Question 21: Which of the following is a trait of a functional-based cost management system?
a) unit-based drivers
b) tracing intensive
c) use of both financial and non-financial measures of performance
d) detailed activity information
Ans: d) detailed activity information

Question 22: _______________ is a unit-costing method that excludes prior-period work and costs in computing current-period unit work and costs.
a) FIFO costing method
b) Transferred-in cost
c) Weighted average method
d) Equivalent units
Ans: b) Transferred-in cost

Question 23:_______________ is devoted to providing information for external users.
a) Management accounting
b) Financial accounting
c) Internal accounting
d) Cost accounting
Ans: b) Financial accounting

Question 24: Jacob Company has two support departments, Maintenance Department and Personnel Department, and two producing departments, X and Y. The Maintenance Department costs of $60,000 are allocated on the basis of standard service used. The Personnel Department costs of $9,000 are allocated on the basis of number of employees. The direct costs of Departments X and Y are $18,000 and $30,000, respectively.

Data on standard service hours and number of employees are as follows:

Maint. Person. Dept. Dept.
Dept. Dept. X Y

Standard service hours used 100 50 300 150
Number of employees 5 10 45 45

Direct labor hours 50 50 250 250

Predetermined overhead rates for Departments X and Y, respectively, are based on direct labor hours.

What is the overhead rate for Department Y assuming the direct method is used?
a) $218.00
b) $120.00
c) $250.00
d) $109.00

Question 25: A(n) _______________ is a computerized information system that strives to input data once and make it available to people across the company for different purposes.
a) cost management information system
b) enterprise resource planning system
c) internal accounting system
d) financial accounting information system
Ans; b) enterprise resource planning system

Question 26: Goal congruence can be defined as:
a) an incentive plan arranged so the managers goals are allied with the shareholders' goals
b) managers operating the business in the best interest of the shareholders
c) tying management rewards to shareholder results
d) all of the above are correct
Ans: d) all of the above are correct

Question 27: Ring Company produces two types of product: Small and Large. Two work orders for two batches of the products are shown below, along with some additional cost information:

Small Large
Work Order 10 Work Order 11
Direct materials (actual costs) $45,000 $75,000

Applied conversion costs:
Mixing ? ...

Solution Summary

The solution contains the answers for twenty questions covering job costing, process costing, variances, allocation of joint costs, computation of toal overhead costs etc.,