Costing - Study Mode
[#661] Considering dual rate method, if employees work for 8500 budgeted hours at $120 per hour and work for 9500 actual hours at $110 per hour, then total cost would be
Correct Answer
(C) $2,065,000
[#662] Method which determines weights of cost allocation by considering cost of each user as separate entity is known as
Correct Answer
(C) stand-alone cost allocation method
Explanation
Solution: Method which determines weights of cost allocation by considering cost of each user as separate entity is known as stand-alone cost allocation method. Cost allocation methods are designed to allocate costs not necessarily associated with a product, to the appropriate products to get a realistic estimate of costs so that a proper price can be determined for a particular product.
[#663] Budgeted total direct labour cost is divided with budgeted total direct labour to calculate
Correct Answer
(C) budgeted direct labour cost rate
Explanation
Solution: Budgeted total direct labour cost is divided with budgeted total direct labour to calculate budgeted direct labour cost rate.
[#664] Budgeted direct labour hours are multiplied to direct labour cost rate to calculate
Correct Answer
(B) budgeted total direct labour cost
[#665] Term which describes assigning of indirect cost to any cost abject is classified as
Correct Answer
(A) cost allocation
Explanation
Solution: Term which describes assigning of indirect cost to any cost abject is classified as cost allocation. Cost allocation is a process of providing relief to shared service organization's cost centers that provide a product or service.