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Job Costing – MCQs
46 questions. Click to practice.
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Correct options are highlighted when revealed.
1.
Given that the planned direct labor hours amount to 3,550 and the labor cost rate is $500 per hour, what is the total direct labor expense?
$1,775,000
$1,675,000
$1,875,000
$1,975,000
None of the above
2.
What term describes the scenario where a cost object is associated with a specific job, customer, or product?
cost application base
sales application base
pricing application base
direct application base
none of the above
3.
In normal costing, what is determined by multiplying the budgeted overhead rate by the actual quantity of the allocation base used?
Overhead costs based on budgeted amounts
Applied manufacturing overhead
Applied labor overhead
None of the above
Actual overhead incurred
4.
Given an indirect cost pool budget of $139,600 and a total cost allocation base amounting to $155,600, what is the budgeted indirect cost rate?
69.72%
79.72%
99.75%
89.72%
Not applicable
5.
Given a budgeted indirect cost rate of $225 and a budgeted allocation base of 750 hours, what is the total annual budgeted indirect cost?
$168,750
$148,570
$186,750
$125,680
6.
During a typical accounting cycle, if the assigned indirect cost is $2000 but the actual cost incurred is $2200, how is this situation classified?
over allocated budget
under allocated budget
indirect cost under allocation
direct cost over allocation
direct cost under allocation
7.
Given an annual budgeted manufacturing overhead of $2,250,000 and a total of 2,800 labor hours as the allocation base, what is the predetermined overhead rate per labor hour?
$803.571 for each labor hour
$805 for every labor hour
$905 per labor hour
$802 assigned to each labor hour
8.
Given a budgeted indirect cost rate of $115 and a budgeted allocation base of 830 hours, what is the total budgeted indirect cost for the year?
$93,450
$94,560
$96,450
$95,450
None of the above
9.
What is the term for the process of directly assigning costs to a specific cost object?
distribution of sales expenses
tracking of costs
cost allocation
tracking of sales
expense categorization
10.
Given an indirect cost pool budget of $144,500 and a total cost allocation base quantity of $165,500, what is the budgeted indirect cost rate?
67.30%
87.31%
55.50%
45.50%
11.
Given that the actual manufacturing overhead expenses amount to $485,000 and the total actual labor hours used as the cost allocation base are 4,500, what is the calculated overhead rate per labor hour?
$109.87
$107.78
$106.56
$104.34
$102.45
12.
Which costing method involves multiplying the actual direct rates by the quantity of direct cost inputs?
priced cost method
actual costing
direct expense costing
indirect cost allocation
standard costing
13.
During a typical accounting period, if the assigned indirect cost is $700 but the actual indirect cost incurred is $800, how is this difference categorized?
under allocated indirect cost
over allocated direct cost
excess allocated budget
insufficient allocated budget
over allocated indirect cost
14.
If the actual indirect costs amount to $35,000 and the allocated indirect costs are $43,000, what is the value of the underallocated indirect cost?
$78,000
-$78,000
-$8,000
$8,000
15.
What term describes the structured method of assigning a group of indirect costs to a specific cost object?
associated allocation factor
primary allocation metric
secondary allocation measure
cost allocation base
expense distribution method
16.
Given an annual budgeted indirect cost of $85,000 and a budgeted annual quantity of 7,500 units for the cost allocation base, what is the budgeted indirect cost rate per unit?
$112.34 per unit
$113.34 per unit
$111.34 per unit
$110.34 per unit
None of the above
17.
How is the manufacturing overhead cost assigned to specific jobs categorized?
manufacturing overhead allocated
cost overhead applied
manufacturing overhead applied
both A and C
18.
Given that the planned total direct labor hours amount to 5,500 and the expected direct labor expense is $755,000, what is the budgeted direct labor cost rate per hour?
$138 for each labor hour
$137.27 per labor hour
$140 for every labor hour
$142 per labor hour
19.
Given a budgeted total of 3,800 direct labor hours and a budgeted direct labor cost of $480,000, what is the budgeted direct labor cost rate per hour?
$126.32 for each labor hour
$128.32 for each labor hour
$130.00 for each labor hour
$132.00 for each labor hour
20.
What is the name of the document that details the labor hours spent on a particular task within a specific department?
sales time log
labor time record
purchase time sheet
direct work log
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