Acc310 module 3 quiz 2017 (Score 100%)

QuestionQuestion 1For which of the following businesses would the job order cost system be appropriate?auto repair shopcrude oil refinerydrug manufacturerbeer distilleryQuestion 2Which of the following statements is (are) true?(A). Activity-based costs per unit are greater than volume-based costs per unit.(B). Volume-based costing has typically resulted in lower gross margins for high volume products and higher gross margins for low volume products.Only A is true.Only B is true.Both A and B are true.Neither A nor B are true.Question 3Which of the following statements is (are) true regarding product costing?(A) A job is a cost object that can be easily and conveniently distinguished from other cost objects.(B) Job cost sheets are used in accounting systems as a subsidiary ledger for the Work-in-Process account.Only A is trueOnly B is true.Both A and B are true.Neither A nor B is true.Question 4Volume-based costing allocates indirect product costs based on the volume of output, using such allocation bases as direct labor hours, machine hours, and the amount of direct material used in the production process. Activity-based costing (ABC) has consistently shown that Volume-based costingoverstates high volume products.overstates low volume products.understates high volume products.understates low volume products.More than one of the above is true.Question 5The predetermined overhead rate for manufacturing overhead for 2008 is $4.00 per direct labor hour. Employees are expected to earn $5.00 per hour and the company is planning on paying its employees $100,000 during the year. However, only 75% of the employees are classified as "direct labor." What was the estimated manufacturing overhead for 2008?$60,000$75,000$80,000$93,750($100,000 × .75)/$5.00 = 15,000 hours; 15,000 × $4.00 = $60,000Question 6Companies using activity-based costing (ABC) have learned that costs are a function ofvolume and activities.time and complexity.volume and time.resources and time.volume and resources.Question 7Which of the following accounts is used to accumulate the actual manufacturing overhead costs incurred during a period?Applied Manufacturing OverheadWork-in-Process InventoryManufacturing Overhead ControlCost of Goods SoldFinished Goods InventoryQuestion 8Service firms use similar job costing procedures as manufacturing companies. However, a few slight differences exist. Which of the following is not a difference between job costing for service firms and job costing for manufacturing companies?Service firms generally use fewer direct materials that manufacturing companies.Service firms' overhead accounts have slightly different titles (e.g., Applied Service Overhead).Service firms' finished jobs are charged to Cost of Services Billed instead of Cost of Goods Sold.Service firms' do not use a Work-in-Process account for contracts that are partially complete.Question 9If a company multiplies its predetermined overhead rate by the actual activity level of its allocation base, it is usingstandard costing.normal costing.actual costing.budget costing.ideal costing.Question 10Materials are added at the beginning of a process in a process costing system. The beginning Work-in-Process Inventory was 30% complete as to conversion costs. Using first-in, first-out (FIFO) process costing, the total equivalent units for material arebeginning inventory this period for this process.units started this period in this process.units started this period in this process plus the beginning inventory.units started this period in this process plus 70% of the beginning inventory this period.