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NEW QUESTION 33
Which one of the following best describes the difference between a normal costing system and an actual costing system?
- A. Factory overhead cost is estimated using a predetermined rate under a normal costing system, while it is me actual value under an actual costing system.
- B. Direct labor cost is estimated using a predetermined rate under a normal costing system, while it is the actual value under an actual costing system.
- C. Both direct labor cost and direct material cost are estimated using a predetermined rate under a normal costing system, while they are the actual value under an actual costing system
- D. Direct material cost is estimated using a predetermined rate under a normal costing system while it is the actual value under an actual costing system
Answer: A
NEW QUESTION 34
All of the following are limitations of teaming curve analysis except that
- A. it is appropriate only for labor-intensive repetitive tasks
- B. the estimated learning rate might be unreliable because other factors could have caused the change
- C. the learning rate tends to be affected by seasonality in sales
- D. the learning rate is assumed to be constant
Answer: C
NEW QUESTION 35
The master budget for a company contains me following production requirements.
Quarter 1- 50,000 units
Quarter 2 - 55,000 units
Quarter 3 - 45,000 units
Quarter 4 - 52,000 units
Each unit of product requires four pounds of direct material. The company has a policy to begin each quarter with an inventory of aired materials equal to 20% of that quarter's direct material requirements The budgeted direct mate da I purchases for the third quarter would be
- A. 41,400 pounds
- B. 185, 600 pounds
- C. 49, 400 pounds
- D. 36, 000 pounds
Answer: B
NEW QUESTION 36
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