Costing - Study Mode

[#981] When 1000 units are 60% complete in a process, it is equivalent to . . . . . . . . completed units.
Correct Answer

(B) 600

[#982] The primary emphasis of . . . . . . . . cost is on the planning function of management.
Correct Answer

(A) budgeted

[#983] If an actual manufacturing overhead costs is $485000 and actual total quantity of cost allocation base is 4500 labour hours, then overhead rate would be
Correct Answer

(B) $107.78

Explanation

Solution: Overhead rate = Actual manufacturing overhead costs ÷ Actual total quantity of cost allocation = $485000 ÷ 4500 = $107.78

[#984] An allocation approach, in which all overhead entries are restated using actual cost rates in place of budgeted rates is called
Correct Answer

(B) adjusted allocation rate approach

Explanation

Solution: An allocation approach, in which all overhead entries are restated using actual cost rates in place of budgeted rates is called adjusted allocation rate approach. The adjusted allocation-rate approach restates or corrects estimated overhead costs booked throughout the year, so that the actual overhead costs are recorded properly.

[#985] If budgeted cost in indirect cost pool is $144500 and total quantity of cost allocation base is $165500, then budgeted indirect cost rate will be
Correct Answer

(B) 87.31%