Job Costing Trivia Questions and Answers PDF - 8

MCQ 36: If the budgeted annual manufacturing indirect cost is $2250000 and the cost allocation base is 2800 labor hour, then budgeted manufacturing overhead rate will be

1. $803.571 per labor hour
2. $805 per labor hour
3. $905 per labor hour
4. $802 per labor hour

MCQ 37: In a normal accounting period, the allocated amount of indirect cost is $2000 and the actual amount is $2200, it classified as

1. over allocated budget
2. under allocated budget
3. under allocated indirect cost
4. over allocated direct cost

MCQ 38: The spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as

1. proration approach
2. appreciation approach
3. depreciation approach
4. adjusted approach

MCQ 39: If the budgeted indirect cost is $225 and the budgeted cost allocation base is $750 per hour, then the annual indirect cost (budgeted) would be

1. $168,750
2. $148,570
3. $186,750
4. $125,680

MCQ 40: If the budgeted cost in indirect cost pool is $139600 and total quantity of cost allocation base is $155600, then the budgeted indirect cost rate would be

1. 69.72%
2. 79.72%
3. 99.75%
4. 89.72%