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1 | |
The three elements of cost commonly found on a Job Cost Sheet are:
(Learning Objective 2 Ch 3) |
| | A) | Indirect Material. Indirect Labour and Direct Overheads |
| | B) | Direct Material, Indirect Labour and Direct Overheads |
| | C) | Indirect Material, Direct Labour and Indirect Overheads |
| | D) | Direct Material, Direct Material and Indirect Overheads |
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2 | |
A predetermined Overhead Absorption Rate (OAR) per labour hour is found by using the following formula:
(Learning Objective 3 Ch 3) |
| | A) | Budgeted Overheads/Actual Labour Hours |
| | B) | Actual Labour Hours/Budgeted Overheads |
| | C) | Budgeted Overheads/Budgeted Labour Hours |
| | D) | Actual Labour Hours/Actual Overheads |
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3 | |
The predetermined OAR is £5 per machine hour. The actual overheads were £50,000. The actual machine hours were 8,000 hours. The budgeted Overheads were £70,000. This will result in:
(Learning Objective 3 Ch 3) |
| | A) | An over absorption if £10,000 |
| | B) | An under absorption of £10,000 |
| | C) | An over absorption of £20,000 |
| | D) | An under absorption of £20,000 |
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4 | |
Which of the following businesses would be most likely to use job-order costing.
(Learning Objective 1 Ch 3) |
| | A) | Ford Cars |
| | B) | Weston's Cider |
| | C) | A Specialist Boat Builder |
| | D) | Barbie Dolls |
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5 | |
The costs and details of job 1016 are as follows:
Materials 8kg * £4 per hour. Labour 4 hours @ £8 per hour. The OAR is £10 per kg
The Job Cost is:
(Learning Objective 3 Ch 3) |
| | A) | £144 |
| | B) | £80 |
| | C) | £64 |
| | D) | £32 |
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6 | |
If a worker on the shop floor wants to request some parts from the stores he/she uses a:
(Learning Objective 2/6 Ch 3) |
| | A) | Job Cost Sheet |
| | B) | Materials Requisition Form |
| | C) | Bill of Materials |
| | D) | Time Ticket |
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7 | |
The double entry required to record materials issued to production is as follows:
(Learning Objective 4 Ch 3) |
| | A) | Dr Materials; Cr WIP |
| | B) | Dr Raw Materials; Cr WIP |
| | C) | Dr Finished Goods Stock; Cr Raw Materials |
| | D) | Dr Raw Materials; Cr Finished Goods Stock |
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8 | |
Which of the following statements is the true one?
(Learning Objective 5 Ch 3) |
| | A) | Most companies use the ABC system to apportion overheads |
| | B) | Most companies use machine hours to apportion overheads |
| | C) | In companies where overheads and labour hours have been moving in opposite directions their has been an increase in the use of labour hours to apportion overheads |
| | D) | Most companies still use a direct labour basis to apportion overheads |
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9 | |
Company Q has overabsorbed (overapplied) overheads. Which of the following statements describes a possible cause of this?
(Learning Objective 7 Ch 3) |
| | A) | The company worked less efficiently |
| | B) | The company worked less hours than planned |
| | C) | The company worked more hours than planned |
| | D) | The company spent more on overheads than planned |
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10 | |
A company has based its predetermined overhead on its maximum capacity. Which of the following is untrue?
(Learning Objective 8 Ch 3) |
| | A) | This will result in underabsorbed overhead |
| | B) | The OAR calculated will be unrealistic |
| | C) | The OAR calculated will be useful for budgeting |
| | D) | This will result in overabsorbed overhead |
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2003 A McGraw-Hill Online Learning Centre