SOLUTION - Acct 3310 Zeigler: Quiz #2 (Chp 4) - 20 Pts
____ 1. A cost-allocation base may be any of the following except a a.
way to link indirect costs to a cost object.
A company that manufactures dentures, custom-ordered by local dentists, would use: a.
The first step in the seven-step approach to job costing is to a.
select the cost-allocation base to use in assigning indirect costs to the job. b.
identify the direct costs of the job.
identify the job that is the chosen cost object.
identify the indirect-cost pools associated with the job.
Using normal costing, rather than actual costing, requires that the allocating of indirect
manufacturing costs to work-in-process be: a.
done on a more timely basis, such as every two weeks rather than every month. b.
journalized only at year end when adjusting entries are normally made. c.
calculated by using the budgeted rate times actual quantity of allocation base. d.
calculated by using the budgeted rate times the budgeted quantity of allocation base.
Which of the following accounts is not classified as an asset? a.
Manufacturing Overhead Control
Finished Goods Control
____ 6. Assuming use of Normal Costing, the indirect-cost (i.e. Overhead) rate is calculated:
a. at the beginning of the year
b. during the year
c. at the end of each quarter
d. at the end of the year
____ 7. In a Normal Costing system, the “Manufacturing Overhead Control” account:
a. is increased by allocated manufacturing overhead
b. is credited with amounts transferred to Work-in-Process
c. is decreased by allocated manufacturing overhead
d. is debited with actual overhead costs
____ 8. For any...
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