Course 201510 ACC315-O Cost Accounting

Test Test Chaps 4, 5, & 6

Question 1
3 out of 3 points

The four types of cost drivers are:

Selected Answer:

b. activity-based, volume-based, structural and executional

Question 2
3 out of 3 points

Standard costs are:

Selected Answer:

a. expected costs the firm should attain.

Question 3
3 out of 3 points

The ideal criterion for choosing an allocation base for overhead is:

Selected Answer:

b. a cause-and-effect relationship.

Question 4
3 out of 3 points

Volume-based rates are appropriate in situations where the incurrence of factory

overhead:

Selected Answer:
Correct Answer:

Question 5
3 out of 3 points

c. is related to a single, common cost driver.

c.
is related to a single, common cost driver.

Under job costing, factory overhead costs are assigned to products or services using labor
or machine hours which are:

Selected Answer:

b.
Volume-based cost drivers.

Correct Answer:

b.
Volume-based cost drivers.

Question 6
Needs Grading

Hillman consulting firm has an overhead rate of 200% of direct labor charged to each job. The
materials cost (including travel and other direct costs) for a particular job is $10,000 and the
direct labor is $20,000. What is the total job cost for the job? (Please show your work)
Selected Answer: 20,000 X 200% = 40,000 OH cost
20,000/40,000 = 0.5 X 20,000 = 10,000
10000/40000 = 0.25 X 10,000 = 2500
2500 + 10,000 = 12,500
Correct Answer: [None]

Question 7
3 out of 3 points

The major limitation of volume-based costing systems is the use of volume-based:

Selected Answer:

c.
rates

Correct Answer:

c.
rates

Question 8
3 out of 3 points

Effective implementation of activity-based costing (ABC) requires:

Selected Answer:

b.
Support of top management and key
employees.

Correct Answer:

b.
Support of top management and key
employees.

Question 9
3 out of 3 points

A measure of the quantity of resources consumed by an activity is:

Selected Answer:

a.
resource consumption driver

Correct Answer:

a.
resource consumption driver

Question 10
0 out of 3 points

Which of the following is a batch-level cost driver?

Selected Answer:

c.
Number of parts.

Correct Answer:

d.
Number of orders.

Question 11
3 out of 3 points

Which of the following has the weakest linkage between activity and cost driver?

Selected Answer:
Correct Answer:

d.
Option D.
d.

Option D.

Question 12
Needs Grading

Wesley Data Company reported expenses of $5 million for indirect labor, of which $3 million
was for data analysis and $2 million was for data entry. Wesley recorded 30,000 hours of data
analysis and 100,000 hours of data entry. What are the activity-based rates for each area of
direct labor? (Please show your work.)
Selected Answer: data analysis = 3 mil / 30,000 = $100/hour
data entry = 2 mil / 100,000 = $20/hour
Correct Answer: [None]

Question 13
3 out of 3 points

Which of the above cost pools are used to classify costs under activity-based costing?

Selected Answer:

b.
Option B

Correct Answer:

b.
Option B

Question 14
3 out of 3 points

The key difference between weighted-average and FIFO process costing methods is the
handling of the partially completed:

Selected Answer:

c.
beginning work-in-process inventory

Correct Answer:

c.
beginning work-in-process inventory

Question 15

3 out of 3 points

The advantage of the weighted-average method is its:

Selected Answer:

b.
simplicity

Correct Answer:

b.
simplicity

Question 16
0 out of 3 points

When using the first-in, first-out method of process costing, equivalent units for work
done during this period is equal to the number of units:

Selected
Answer:

Correct
Answer:

b.
in work-in-process at the beginning of the period, plus the number of units
started during the period, plus the number of units remaining in work-inprocess at the end of the period times the percent of work necessary to
complete the items.

a.
in work-in-process at the beginning of the period times the percent of work
necessary to complete the items, plus the number of units started and
completed during the period, plus the number of units remaining in work-inprocess at the end of the period times the percent of work done during the
period.

Question 17
3 out of 3 points

The percentage of completion of the beginning work-in-process inventory should be

considered in the computation of the equivalent units for which of the above methods of
process costing?

Selected Answer:

b.
Option B

Correct Answer:

b.
Option B

Question 18
Needs Grading

East Bay Fisheries Inc. processes king salmon for various distributors. Two departments
are involved processing and packaging. Data relating to tons of king salmon processed
in the processing department during June 2013 are provided above.
Total equivalent units for materials under the weighted-average method are calculated to
be: (Please show your work).

Selected
Answer:
Correct
Answer:

1500+7800 = 9300 X 90% = 8370 9300-8370 = 930 + 2800 = 3730

equivalent units for materials
[None]

Question 19
Needs Grading

Beginning work-in-process is 2,000 units; units completed is 44,000 units and ending workin-process is 3,000 units, which are 100% complete for material and 50% complete for
conversion costs. The beginning work-in-process inventory is 100% complete for materials
and 50% complete for conversion. What are the equvalent units for materials and conversion
using the weighted average method; FIFO method? (Please show your work).
Selected Answer: 2,000 WIP 44,000 Completed 3,000 ending WIP (
Correct Answer: [None]

Question 20
0 out of 5 points

On March 1, Portland Company had 20,000 units of work in process in Department A,

which were 100% complete as to material costs and 40% complete as to conversion
costs. During March, 150,000 units were started in Department A and 160,000 units were
completed and transferred to Department B. Work in process on March 31 was 100%

complete as to material costs and 50% complete as to conversion costs. By what amount
would the equivalent units for conversion costs for the month of March differ if the FIFO
method were used instead of the weighted-average method?

Selected Answer:

c.
6,000 decrease

Correct Answer:

b.
8,000 decrease