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    21S 2083 Quiz 1 C

    Uploaded by

    Akshit Goyal
    This document contains a quiz with multiple choice and short answer questions related to manufacturing overhead and inventory valuation. For the multiple choice section, the document provides background information on different companies and asks students to calculate overhead rates, product costs, and identify characteristics of activity-based costing. The short answer section provides financial information for a company and asks students to calculate cost of goods manufactured, cost of goods sold, the amount of overhead under or over applied, and whether the closing entry would be a debit or credit to cost of goods sold.

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    © All Rights Reserved
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    21S 2083 Quiz 1 C

    Uploaded by

    Akshit Goyal
    46 views5 pages
    This document contains a quiz with multiple choice and short answer questions related to manufacturing overhead and inventory valuation. For the multiple choice section, the document provides background information on different companies and asks students to calculate overhead rates, product costs, and identify characteristics of activity-based costing. The short answer section provides financial information for a company and asks students to calculate cost of goods manufactured, cost of goods sold, the amount of overhead under or over applied, and whether the closing entry would be a debit or credit to cost of goods sold.

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    This document contains a quiz with multiple choice and short answer questions related to manufacturing overhead and inventory valuation. For the multiple choice section, the document provides background information on different companies and asks students to calculate overhead rates, product costs, and identify characteristics of activity-based costing. The short answer section provides financial information for a company and asks students to calculate cost of goods manufactured, cost of goods sold, the amount of overhead under or over applied, and whether the closing entry would be a debit or credit to cost of goods sold.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    46 views5 pages

    21S 2083 Quiz 1 C

    Uploaded by

    Akshit Goyal
    This document contains a quiz with multiple choice and short answer questions related to manufacturing overhead and inventory valuation. For the multiple choice section, the document provides background information on different companies and asks students to calculate overhead rates, product costs, and identify characteristics of activity-based costing. The short answer section provides financial information for a company and asks students to calculate cost of goods manufactured, cost of goods sold, the amount of overhead under or over applied, and whether the closing entry would be a debit or credit to cost of goods sold.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    QUIZ 1

    Student Name: AKSHIT GOYAL


    Student ID: 2020060472
    SECTION __C___

    Please fill-in the final solutions to the questions in the tables below:

    Multiple Choice
    1. B 2. B
    3. B 4. A
    5. E 6. A
    Short Answer
    7. Cost of goods manufactured: $605460
    8. Cost of goods sold: $1735700 (Before adjustment- $618660)
    9. MOH overhead difference $ +(say if over or under applied): over applied
    10. Indicated if debit or credit for COGS: Credit
    (Total: 10 marks; 1 mark each)

    1
    2083 QUIZ 2 BBA ONTARIO
    Multiple Choice
    1. Aztec Builders allocates manufacturing overhead to jobs based on machine hours. The
    company has the following estimated costs for the upcoming year:

    Direct materials used $24,000


    Direct labour costs $62,000
    Salary of factory supervisor $41,000
    Advertising expense $33,000
    Heating and lighting costs for factory $21,000
    Depreciation on factory equipment $10,000
    Sales commissions $8,000

    The firm estimates that 1,800 direct labour hours will be worked in the upcoming year, while
    2,000 machine hours will be used during the year. The predetermined indirect allocation rate
    per machine hour is closest to
    a. $56.
    b. $36.
    c. $100.
    d. $15.
    e. $40.

    1. Blockbuster Entertainment manufactures digital video equipment. For each unit $1475 of
    direct material is used and there is $1,500 of direct manufacturing labour at $50 per hour.
    Manufacturing overhead is applied at $35 per direct manufacturing labour hour. Calculate
    the cost of each unit.
    a. $2,975
    b. $4,025
    c. $1,750
    d. $3,150
    e. $4,725

    2. In an activity-cost pool
    a. a measure of the activity performed serves as the cost allocation base.
    b. the costs have a cause-and-effect relationship with the cost-allocation base for that
    activity.
    c. the cost pools are homogeneous over time.

    2
    2083 QUIZ 2 BBA ONTARIO
    d. costs in a cost pool can always be traced directly to
    products.
    e. each pool pertains to a narrow and focused set of costs.

    Answer the following question(s) using the information below.


    Peter’s Printers has contracts to complete weekly supplements required by forty-six
    customers. For the year 2019, manufacturing overhead cost estimates total $300,000 for an
    annual production capacity of 6 million pages.

    For 2019, Peter’s Printers has decided to evaluate the use of additional cost pools. After
    analyzing manufacturing overhead costs, it was determined that number of design changes,
    setups, and inspections are the primary manufacturing overhead cost drivers. The following
    information was gathered during the analysis:
    Manufacturing
    overhead
    Cost pool costs Activity level
    Design changes 400 design
    $60,000 changes
    Setups 200,000 4,000 setups
    Inspections 10,000
    40,000 inspections
    Total manufacturing overhead
    costs $300,000
    During 2019, two customers, World Makers and Happy Studios, are expected to use the
    following printing services:

    Activity World Makers Happy Studios


    Pages 60,000 76,000
    Design changes 10 0
    Setups 20 10

    3
    2083 QUIZ 2 BBA ONTARIO
    Inspections 30 38

    3. What is the cost driver rate if manufacturing overhead costs are considered one large cost
    pool and are assigned based on 6 million pages of production capacity?
    a. $0.05 per page
    b. $0.035 per page
    c. $0.35 per page
    d. $0.025 per page
    e. $0.045 per page

    4. Using pages printed as the only overhead cost driver, what is the manufacturing overhead
    cost estimate for World Makers during 2019?
    a. $2,500
    b. $21,000
    c. $1,500
    d. $2,700
    e. $3,000

    5. Assuming activity-cost pools are used, what are the activity-cost driver rates for design
    changes, setups, and inspections cost pools?
    a. $150 per change, $50 per setup, $4 per inspection
    b. $180 per change, $50 per setup, $4 per inspection
    c. $150 per change, $64 per setup, $5 per inspection
    d. $150 per change, $50 per setup, $5 per inspection
    e. $200 per change, $5 per setup, $50 per inspection

    Short Answer
    The following costs are attributed to the Quilt Company:
    Purchase of raw materials (all direct) $298,100
    Direct labour cost $141,900
    Manufacturing overhead costs $159,260

    4
    2083 QUIZ 2 BBA ONTARIO
    Inventories:
    Beginning raw materials $10,000
    Ending raw materials $9,000
    Beginning work in process $20,000
    Ending work in process $14,800
    Beginning finished goods $19,000
    Ending finished goods $5,800

    Quilt Company used a 120% predetermined overhead rate based on direct labour cost.
    Required:
    6. Calculate the cost of goods manufactured.
    7. What was the cost of goods sold before adjusting for any under or over applied
    overhead?
    8. By how much was manufacturing overhead cost under or over applied?
    9. Would the summary journal entry to close any under or over applied manufacturing
    overhead cost be a debit or credit to COGS?

    5
    2083 QUIZ 2 BBA ONTARIO

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