(Solution) 14. A Chair Manufacture Maker Customs Chairs Using Hand Tools, Wood, Glue, And Varnish. Which Of The Following Is True? | Snapessays.com


(Solution) 14. A chair manufacture maker customs chairs using hand tools, wood, glue, and varnish. Which of the following is true?


14. A chair manufacture maker customs chairs using hand tools, wood, glue, and varnish. Which of the following is true?

 

A) The costs of wood and glue would be treated as direct costs.

 

B) Wood, glue, and varnish would all be direct materials.

 

C) Wood would be accounted for as a direct cost, and glue and varnish as indirect cost.

 

D) The concepts of direct and indirect costs are not applicable here.

 

 

15. Overhead costs

 

A) can be traced to cost objects in a cost-effective manner.

 

B) cannot be traced to cost objects cost effectively but can be allocated to cost objects.

 

C) primarily are variable costs.

 

D) are not incurred by most companies.

 

 

16. Ransom Manufacturing Company operates its three production departments within a single facility. Each department produces its own productions and maintains its own production equipment. Although they share a common facility, each department is overseen by separate supervisor. Which one of the following costs is a direct cost of each department?

 

A) Lease payment facility

 

B) Depreciation of the facility

 

C) Plant manager salary

 

D) Cost of goods sold

 

 

17. The KnitWitt Corporation manufactures knitted shawls and scarves. The company expects to incur $1,500,000 in overhead cost during 2010. The following budget information is for 2010:

 

 

Shawls Scarves Total

 

Number of units expected to be produced 50,000 100,000 150,000

 

Direct labor hours 250,000 800,000 1,050,000

 

Machine hours 100,000 80,000 180,000

 

 

If the company uses direct labor hours as the cost driver, what amount of overhead cost will be allocated to Shawls?

 

 

A) $357,500

 

B) $750,000

 

C) $470,000

 

D) $833,00014. A chair manufacture maker customs chairs using hand tools, wood, glue, and varnish.

 

Which of the following is true?

 

A) The costs of wood and glue would be treated as direct costs.

 

B) Wood, glue, and varnish would all be direct materials.

 

C) Wood would be accounted for as a direct cost, and glue and varnish as a direct cost.

 

D) The concepts of direct and indirect costs are not applicable here.

 

15. Overhead costs

 

A) can be traced to cost objects in a cost-effective manner.

 

B) cannot be traced to cost objects cost effectively but can be allocated to cost objects.

 

C) primarily are variable costs.

 

D) are not incurred by most companies.

 

16. Ransom Manufacturing Company operates its three production departments within a

 

single facility.

 

Each department produces its own productions and maintains its own

 

production equipment.

 

Although they share a common facility, each department is

 

overseen by separate supervisor.

 

Which one of the following costs is a direct cost of each

 

department?

 

A) Lease payment facility

 

B) Depreciation of the facility

 

C) Plant manager salary

 

D) Cost of goods sold

 

17. The KnitWitt Corporation manufactures knitted shawls and scarves.

 

The company

 

expects to incur $1,500,000 in overhead cost during 2010.

 

The following budget

 

information is for 2010:

 

Shawls

 

Scarves

 

Total

 

Number of units

 

expected to be

 

produced

 

50,000

 

100,000

 

150,000

 

Direct labor hours

 

250,000

 

800,000

 

1,050,000

 

Machine hours

 

100,000

 

80,000

 

180,000

 

If the company uses direct labor hours as the cost driver, what amount of overhead cost

 

will be allocated to Shawls?

 

A) $357,500

 

B) $750,000

 

C) $470,000

 

D) $833,000

 


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This question was answered on: May 23, 2022

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