If an allocated indirect cost is $1500 and the actual incurred indirect cost is $1200, then this is classified as __________?
A. applied indirect cost B. applied direct cost C. incurred indirect cost D. over allocated indirect cost
Accounting MCQs with Answers
The budgeted total direct labor cost is divided with budgeted total direct labor, to calculate ___________?
A. budgeted indirect labor cost rate B. expected direct labor cost rate C. budgeted direct labor cost rate D. expected indirect labor cost rate
The budgeted direct labor hours are multiplied to direct labor cost rate, to calculate ____________?
A. expected total direct labor cost B. budgeted total direct labor cost C. budgeted total indirect labor cost D. expected labor hours
A document which contains information about the materials of specific product, in specific department comes under __________?
A. costing method B. selling method C. material acquisition method D. none of above
An under allocated indirect cost is also called ____________?
A. under applied indirect cost B. under absorbed indirect cost C. absorbed indirect cost D. both a and b
The total indirect cost in the pool by an actual quantity of cost allocation base, is used to calculate ____________?
A. actual manufacturing overhead rate B. manufacturing overhead costs C. overhead rate D. direct rate
An approach which yields the benefits of normal costing and the actual manufacturing overhead is classified as ____________?
A. unadjusted allocation rate approach B. adjusted budget rate approach C. unadjusted budget rate approach D. adjusted allocation rate approach
The process of assigning the direct or indirect cost to any cost object is known as ____________?
A. cost assignment B. cost expectation C. event assignment D. probability assignment
If the budgeted direct labor hours are 4550 and direct labor cost rate is $600 per labor hour then, total direct labor cost would be _____________?
A. $4,730,000 B. $3,730,000 C. $2,730,000 D. $1,730,000
If an overhead cost of operating a machine is $500000 for 1000 hours, then the cost allocation rate will be ____________?
A. $1500 per machine hour B. $250 per machine hour C. $500 per machine hour D. $1000 per machine hour