Category: Uncategorized

Factory overhead does NOT include ________.

A standard cost: 

What type of cost exhibits the behavior shown below?  Manufacturing Volume (Units) Total Cost    6,000 $12,000   7,000 $14,000  

Which of the following is the correct method to calculate a predetermined overhead rate? 

Which of the following choices depicts the correct task sequence for target costing?

Bryant Products uses activity-based costing. They manufacture three types of remote-control devices: Economy, Standard, and Deluxe. The company identified five activities (and related cost drivers). Identified below are the activities, budgeted cost, and related cost driver.ActivityCostCost DriverMaterial handling$ 225,000Number of partsMaterial insertion2,475,000Number of partsAutomated machinery840,000Machine hoursFinishing170,000Direct labor hoursPackaging170,000Orders shippedTotal$ 3,880,000 The following information pertains to the three product lines for next year: EconomyStandardDeluxeUnits to be produced10,0005,0002,000Orders to be shipped1,000500200Number of parts per unit101525Machine hours per unit135Labor hours per unit222What is Bryant’s activity rate for the material-handling activity?

Reaction Enterprises recently used 14,000 labor hours to produce 7,800 completed units. Each unit is anticipated to take two hours to complete. The actual payroll cost amounted to $161,000. If the standard labor cost per hour is $11.20, Reaction’s labor rate variance is:

The term “opportunity cost” is best defined as:

Kingston Manufacturing has 30,000 labor hours available for producing X and Y. Consider the following information: Product XProduct YRequired labor time per unit (hours)23Maximum demand (units)5,0007,000Contribution margin per unit$ 5$ 6Contribution margin per labor hour$ 2.50$ 2.00If Kingston follows proper managerial accounting practices, how many units of Product X should it produce?

Which of the following would not be classified as a product cost?