acct 204 quiz 2 ch 18 & 19
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ACCT Quiz 18, 19TRANSCRIPT
204 Quiz 2 Ch 18 & 19
204 Quiz 2 Ch 18 & 19
Student: ___________________________________________________________________________
1.An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called:A.Continuous improvement.B.Customer orientation.C.Just-in-time.D.Theory of constraints.E.Total quality measurement.
2.Benny, an employee of Parrott Company, used company assets for his own personal gain. This is an example ofA.embezzlement.B.fraud.C.internal control.D.ethics.E.employment perks.
3.A mixed cost:A.Requires the future outlay of cash and is relevant for future decision making.B.Does not change with changes in the volume of activity within the relevant range.C.Is directly traceable to a cost object.D.Contains a combination of fixed costs and variable costs.E.Has already been incurred and cannot be avoided so it is irrelevant for decision making.
4.Period costs for a manufacturing company would flow directly to:A.The current income statement.B.Factory overhead.C.The current balance sheet.D.Job cost sheet.E.The current manufacturing statement.
5.Ajax Company accumulated the following account information for the year:Using the above information, total factory overhead costs would be:A.$9,800.B.$16,800.C.$15,800.D.$13,000.E.$7,800.
6.Which of the following statements is True regarding product and period costs?A.Office salaries expense is a product cost and factory maintenance is a period cost.B.Office rent is a product cost and supervisors' salaries expense is a period cost.C.Factory rent is a product cost and advertising expense is a period cost.D.Delivery expense is a product cost and indirect materials is a period cost.E.Sales commissions is a product cost and indirect labor is a period cost.
7.A system of accounting for production operations that produces timely information about inventories and manufacturing costs per unit of product is a:A.Finished goods accounting system.B.General accounting system.C.Manufacturing accounting system.D.Cost accounting system.E.Production accounting system.
8.A job order production system would be appropriate for a company that produces which one of the following items?A.A landscaping design for a new hospital.B.Seedlings for sale in a nursery.C.Sacks of yard fertilizer.D.Packets of flower seeds.E.Small gardening tools, including rakes, shovels, and hoes.
9.Large aircraft producers such as McDonnell Douglas normally use:A.Job order costing.B.Process costing.C.Mixed costing.D.Full costing.E.Simple costing.
10.A job cost sheet shows information about each of the following items except:A.The direct labor costs assigned to the job.B.The name of the customer.C.The costs incurred by the marketing department in selling the job.D.The overhead costs assigned to the job.E.The direct materials costs assigned to the job.
11.Labor costs in production can be:A.Direct or indirect.B.Indirect or sunk.C.Direct or payroll.D.Indirect or payroll.E.Direct or sunk.
12.A company has an overhead application rate of 125% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $20,000?A.$5,000.B.$16,000.C.$25,000.D.$125,000.E.$250,000.
13.Hancock Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Hancock estimated total overhead of $396,000; materials of $410,000 and direct labor of $220,000. During the year Hancock incurred $418,000 in materials costs, $413,200 in overhead costs and $224,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.A.$10,000 overapplied.B.$17,200 overapplied.C.$10,000 underapplied.D.$17,200 underapplied.E.$4,800 underapplied.
204 Quiz 2 Ch 18 & 19 Key
1.An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called:A.Continuous improvement.B.Customer orientation.C.Just-in-time.D.Theory of constraints.E.Total quality measurement.
AACSB: CommunicationsAICPA BB: IndustryAICPA FN: Decision MakingBlooms: RememberDifficulty: EasyLearning Objective: C6 Describe trends in managerial accounting.Wild - Chapter 18 #62
2.Benny, an employee of Parrott Company, used company assets for his own personal gain. This is an example ofA.embezzlement.B.fraud.C.internal control.D.ethics.E.employment perks.
AACSB: EthicsAICPA BB: LegalAICPA FN: Risk AnalysisBlooms: RememberDifficulty: EasyLearning Objective: C1 Explain the purpose and nature of; and the role of ethics in; managerial accounting.Wild - Chapter 18 #67
3.A mixed cost:A.Requires the future outlay of cash and is relevant for future decision making.B.Does not change with changes in the volume of activity within the relevant range.C.Is directly traceable to a cost object.D.Contains a combination of fixed costs and variable costs.E.Has already been incurred and cannot be avoided so it is irrelevant for decision making.
AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementBlooms: RememberDifficulty: EasyLearning Objective: C2 Describe accounting concepts useful in classifying costs.Wild - Chapter 18 #73
4.Period costs for a manufacturing company would flow directly to:A.The current income statement.B.Factory overhead.C.The current balance sheet.D.Job cost sheet.E.The current manufacturing statement.
AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: ReportingBlooms: RememberDifficulty: EasyLearning Objective: C3 Define product and period costs and explain how they impact financialWild - Chapter 18 #77
5.Ajax Company accumulated the following account information for the year:Using the above information, total factory overhead costs would be:A.$9,800.B.$16,800.C.$15,800.D.$13,000.E.$7,800.
FOH = Indirect materials + Indirect labor + MaintenanceFOH = $2,000 + $5,000 + $2,800FOH = $9,800
AACSB: AnalyticAICPA BB: IndustryAICPA FN: MeasurementBlooms: ApplyDifficulty: HardLearning Objective: P2 Prepare a manufacturing statement and explain its purpose and links to financial statements.Wild - Chapter 18 #108
6.Which of the following statements is True regarding product and period costs?A.Office salaries expense is a product cost and factory maintenance is a period cost.B.Office rent is a product cost and supervisors' salaries expense is a period cost.C.Factory rent is a product cost and advertising expense is a period cost.D.Delivery expense is a product cost and indirect materials is a period cost.E.Sales commissions is a product cost and indirect labor is a period cost.
AACSB: AnalyticAICPA BB: IndustryAICPA FN: MeasurementBlooms: UnderstandDifficulty: MediumLearning Objective: C3 Define product and period costs and explain how they impact financialWild - Chapter 18 #130
7.A system of accounting for production operations that produces timely information about inventories and manufacturing costs per unit of product is a:A.Finished goods accounting system.B.General accounting system.C.Manufacturing accounting system.D.Cost accounting system.E.Production accounting system.
AACSB: CommunicationsAICPA BB: IndustryAICPA FN: MeasurementBlooms: RememberDifficulty: EasyLearning Objective: C1 Describe important features of job order production.Wild - Chapter 19 #45
8.A job order production system would be appropriate for a company that produces which one of the following items?A.A landscaping design for a new hospital.B.Seedlings for sale in a nursery.C.Sacks of yard fertilizer.D.Packets of flower seeds.E.Small gardening tools, including rakes, shovels, and hoes.
AACSB: AnalyticAICPA BB: IndustryAICPA FN: MeasurementBlooms: UnderstandDifficulty: MediumLearning Objective: C1 Describe important features of job order production.Wild - Chapter 19 #56
9.Large aircraft producers such as McDonnell Douglas normally use:A.Job order costing.B.Process costing.C.Mixed costing.D.Full costing.E.Simple costing.
AACSB: AnalyticAICPA BB: IndustryAICPA FN: MeasurementBlooms: UnderstandDifficulty: MediumLearning Objective: C1 Describe important features of job order production.Wild - Chapter 19 #57
10.A job cost sheet shows information about each of the following items except:A.The direct labor costs assigned to the job.B.The name of the customer.C.The costs incurred by the marketing department in selling the job.D.The overhead costs assigned to the job.E.The direct materials costs assigned to the job.
AACSB: AnalyticAICPA BB: IndustryAICPA FN: MeasurementBlooms: UnderstandDifficulty: MediumLearning Objective: C2 Explain job cost sheets and how they are used in job order cost accounting.Wild - Chapter 19 #59
11.Labor costs in production can be:A.Direct or indirect.B.Indirect or sunk.C.Direct or payroll.D.Indirect or payroll.E.Direct or sunk.
AACSB: CommunicationsAICPA BB: IndustryAICPA FN: MeasurementBlooms: RememberDifficulty: EasyLearning Objective: P2 Describe and record the flow of labor costs in job order cost accounting.Wild - Chapter 19 #72
12.A company has an overhead application rate of 125% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $20,000?A.$5,000.B.$16,000.C.$25,000.D.$125,000.E.$250,000.
$20,000 x 1.25 = $25,000
AACSB: AnalyticAICPA BB: IndustryAICPA FN: MeasurementBlooms: ApplyDifficulty: HardLearning Objective: P3 Describe and record the flow of overhead costs in job order cost accounting.Wild - Chapter 19 #73
13.Hancock Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Hancock estimated total overhead of $396,000; materials of $410,000 and direct labor of $220,000. During the year Hancock incurred $418,000 in materials costs, $413,200 in overhead costs and $224,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.A.$10,000 overapplied.B.$17,200 overapplied.C.$10,000 underapplied.D.$17,200 underapplied.E.$4,800 underapplied.
OH rate = $396,000/$220,000 = 180%Applied = $224,000 x 1.8 = $403,200$413,200 - $403,200 = $10,000 underapplied
AACSB: AnalyticAICPA BB: IndustryAICPA FN: MeasurementBloom's: ApplyDifficulty: HardLearning Objective: P3 Describe and record the flow of overhead costs in job order cost accounting.Wild - Chapter 19 #106
204 Quiz 2 Ch 18 & 19 Summary
Category
#ofQuestions
AACSB:Analytic
9
AACSB:Communications
3
AACSB:Ethics
1
AICPABB:Industry
10
AICPABB:Legal
1
AICPABB:ResourceManagement
2
AICPAFN:DecisionMaking
1
AICPAFN:Measurement
10
AICPAFN:Reporting
1
AICPAFN:RiskAnalysis
1
Bloom's:Apply
1
Blooms:Apply
1
Blooms:Apply
1
Blooms:Remember
1
Blooms:Remember
1
Blooms:Remember
1
Blooms:Remember
1
Blooms:Remember
1
Blooms:Remember
1
Blooms:Understand
1
Blooms:Understand
1
Blooms:Understand
1
Blooms:Understand
1
Difficulty:Easy
6
Difficulty:Hard
3
Difficulty:Medium
4
LearningObjective:C1Describeimportantfeaturesofjoborderproduction.
3
LearningObjective:C1Explainthepurposeandnatureof;andtheroleofethicsin;managerialaccounting.
1
LearningObjective:C2Describeaccountingconceptsusefulinclassifyingcosts.
1
LearningObjective:C2Explainjobcostsheetsandhowtheyareusedinjobordercostaccounting.
1
LearningObjective:C3Defineproductandperiodcostsandexplainhowtheyimpactfinancial
2
LearningObjective:C6Describetrendsinmanagerialaccounting.
1
LearningObjective:P2Describeandrecordtheflowoflaborcostsinjobordercostaccounting.
1
LearningObjective:P2Prepareamanufacturingstatementandexplainitspurposeandlinkstofinancialstatements.
1
LearningObjective:P3Describeandrecordtheflowofoverheadcostsinjobordercostaccounting.
2
Wild-Chapter18
6
Wild-Chapter19
7