Question 4 (1 point)

When interpreting a job cost sheet, it can be assumed from the calculated unit cost that it would cost that much more to produce one more unit.

	True
	False

Question 6 (1 point)

Indirect labor includes:

a)	Janitorial wages.

b)	Depreciation on the factory building.

c)	Supplies such as grease.

d)	All of the above.

Question 7 (1 point)

Job sheets include a unit product cost, which can be interpreted, within the relevant range, as:

a)	only the additional DM cost the company would incur to produce one more unit.

b)	only the additional DL cost the company would incur to produce one more unit.

c)	the additional DM and DL cost the company would incur to produce one more unit.

d)	the total additional cost the company would incur to produce one more unit.

Question 9

Under/over applied manufacturing OH costs occur because:

a)	the company must estimate the current year manufacturing OH costs in order to apply OH to jobs and are a normal occurrence in a manufacturing environment.

b)	the company did a poor job of estimating manufacturing overhead for the current year.

c)	manufacturing OH costs should have been directly traced to individual jobs.

d)	None of the above.

10. Use the following information to compute the POHR for ABC , Inc for 20x2:

Actual Manu OH for 20x1 = $120,000

Estimated Manu oh for 20x2 is estimated to be 25% higher or $150,000.

Question 10 options:

a)	$1.20 per DL hour.

b)	$1.50 per DL hour.

c)	$1.60 per DL hour.

d)	$1.36 per DL hour.

Actual Manu OH for 20x2 is $160,000

Cost driver is DL hours and the 20x2 estimate is 100,000

Actual DL hours for 20x2 is 110,000