Question 1

In a factory,all of the following would be considered service departments except:

Accepted Answer

A)  Inspection and Packing
B)  Assembly
C)  Power
D)  Human ResourcesE) B) and C)
F) A) and D)

Question 2

The method of distributing service department costs to production departments which distributes service department costs regressively to other service departments,and then to production departments is the:

Accepted Answer

A)  Direct distribution method.
B)  Sequential distribution method.
C)  Service department distribution method.
D)  Reciprocal method.E) All of the above
F) None of the above

Question 3

Which of the following statements about service departments and their costs is not true?

Accepted Answer

A)  Service departments rarely provide services to other service departments.
B)  Some service departments may be able to precisely measure the services it provides to other departments.
C)  Service department costs should be included in total product costs.
D)  Allocation of service department costs should be made on an equitable basis.E) C) and D)
F) B) and C)

Question 4

All of the following are examples of factory overhead costs that benefit the entire factory would therefore be difficult to identify with a specific department except:

Accepted Answer

A)  machine depreciation.
B)  factory security.
C)  the plant manager's salary.
D)  heating costs.E) B) and D)
F) A) and C)

Question 5

Cooper Company had overapplied factory overhead of $2,000 last year.Assuming the amount was considered small enough not to materially distort net income,the entries needed to close factory overhead are:

Accepted Answer

A)  Factory Overhead 2,000 Applied Factory Overhead 2,000Applied Factory Overhead 2,000Cost of Goods Sold 2,000.
B)  Factory Overhead 2,000 Under- and OverappliedFactory Overhead 2,000.Cost of Goods Sold 2,000Under- and OverappliedFactory Overhead 2,000.
C)  Factory Overhead 2,000 Under- and OverappliedFactory Overhead 2,000Under- and Overapplied FactoryOverhead 2,000Cost of Goods Sold 2,000
D)  Factory Overhead 2,000 Applied Factory Overhead 2,000Applied Factory Overhead 2,000Cost of Goods Sold 2,000E) C) and D)
F) All of the above

Question 6

Venus Company has developed the following flexible budget formula for annual indirect labor cost: ​
Total annual cost = $12,000 + $.25 per unit
​
Operating budgets for the current month are based on 6,000 units.Indirect labor costs included in this monthly planning budget are:

Accepted Answer

A)  $13,500.
B)  $12,000.
C)  $1,500.
D)  $2,500.E) A) and D)
F) A) and C)

Exam 4: Accounting for Factory Overhead

Which of the following statements about service departments and their costs is not true?

Correct Answer
verified

All of the following are examples of factory overhead costs that benefit the entire factory would therefore be difficult to identify with a specific department except:

Correct Answer
verified

The method of distributing service department costs to production departments which distributes service department costs regressively to other service departments,and then to production departments is the:

Correct Answer
verified

In a factory,all of the following would be considered service departments except:

Correct Answer
verified

Venus Company has developed the following flexible budget formula for annual indirect labor cost: Total annual cost = $12,000 + $.25 per unit Operating budgets for the current month are based on 6,000 units.Indirect labor costs included in this monthly planning budget are:

Correct Answer
verified

Cooper Company had overapplied factory overhead of $2,000 last year.Assuming the amount was considered small enough not to materially distort net income,the entries needed to close factory overhead are:

Correct Answer
verified

Exam 4: Accounting for Factory Overhead

Which of the following statements about service departments and their costs is not true?

Correct AnswerverifiedShow Answer

All of the following are examples of factory overhead costs that benefit the entire factory would therefore be difficult to identify with a specific department except:

Correct AnswerverifiedShow Answer

The method of distributing service department costs to production departments which distributes service department costs regressively to other service departments,and then to production departments is the:

Correct AnswerverifiedShow Answer

In a factory,all of the following would be considered service departments except:

Correct AnswerverifiedShow Answer

Venus Company has developed the following flexible budget formula for annual indirect labor cost: ​ Total annual cost = $12,000 + $.25 per unit ​ Operating budgets for the current month are based on 6,000 units.Indirect labor costs included in this monthly planning budget are:

Correct AnswerverifiedShow Answer

Cooper Company had overapplied factory overhead of $2,000 last year.Assuming the amount was considered small enough not to materially distort net income,the entries needed to close factory overhead are:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Venus Company has developed the following flexible budget formula for annual indirect labor cost: Total annual cost = $12,000 + $.25 per unit Operating budgets for the current month are based on 6,000 units.Indirect labor costs included in this monthly planning budget are:

Correct Answer
verified

Correct Answer
verified