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Accounting

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1.The following costs were incurred in October:

Direct materials $35000
Direct Labor $13000
Manufacturing overhead $15000
Selling expenses $14000
Administrative expenses $30000

Prime costs during the month totaled to:

 

Select one:

a.

$107000

b.

$48000

c.

$63000

d.

$28,000

 

2.

The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows:

 

Cost Item	Estimated Unit Cost
Direct material	$32
Direct labor	20
Variable manufacturing overhead	15
Fixed manufacturing overhead	6
Variable selling expenses	3
Fixed selling expenses	4

 

What are the estimated conversion costs per unit?

 

 

 

Select one:

a.

$35

b.

$41

c.

$44

d.

$48

3.

You are to receive five gold coins from your great uncle as an incentive to study hard. The coins were originally purchased in 1982. Your great uncle will deliver the coins the week after finals (assuming your grades are "acceptable"). The amount your great uncle paid for the coins is a(n):

 

 

Select one:

a.

overhead cost

b.

opportunity cost

c.

marginal cost

d.

indirect cost

e.

sunk cost

 

4.

Rama Company had the following information:

Budgeted factory overhead $90,000

Actual factory overhead $107,000

Budgeted: Direct-labor costs $100,000

Actual: Direct-labor costs $107,000

The budgeted factory-overhead rate using direct-labor costs as the cost driver is

 

Select one:

a.

$1.00

b.

$0.90

c.

$0.81

d.

$1.05