Use the information below to answer the following questions. Scott's Fencing constructs paling fences. During last month, the fencing division erected 4,000 metres of fencing. The costs incurred by the division were as follows: \[\begin{array} { l r } \text { Palings } & \$ 4,000 \\ \text { Posts } & \$ 5,000 \\ \text { Nails (no usage records) } & \$ 500 \\ \text { Cement (no usage records) } & \$ 500 \\ \text { Wear and tear on equip. } & \$ 2,000 \end{array}\] -Refer to the table above. The cost per metre of fencing is:

A) $2.25. B) $2.75. C) $2.50. D) $3.00. A) $2.25. B) $2.75. C) $2.50. D) $3.00. D

Use information below to answer the following questions. Oswald Ltd manufactures a wide range of leather suitcases. The following costs are expected to be incurred by the company during June: $\begin{array}{lr} \text { Ind irect labour cost } & \$ 26,000 \\ \text { Direct labour time } & 10,000 \text { hours }\\ \text { Depreciation on equipment } & \$ 20,000 \\ \text { Rent and Rates } & \$ 13,000 \\ \text { Direct labour costs } & \$ 98,000 \\ \text { Heating, lighting and power } & \$ 4,000 \\ \text { Machine time } & 8,000\text { hours } \\ \text { Indirect materials } & \$ 5,000 \\ \text { Consumables } & \$ 2,000 \\ \text { Direct materials used } & \$ 50,000 \\ \text { Production estimate } & 1,000\text { suitcases }\\ \end{array}$ -Refer to the table above. Total indirect costs are:

A) $72,000. B) $39,000. C) $59,000. D) $70,000. A) $72,000. B) $39,000. C) $59,000. D) $70,000.

Use the information below to answer the following questions. Fingers Ltd, a graphic design service, has received an inquiry from a potential customer for a quotation for a webpage design. The pricing policy of the business is based on the budgeted financial data for the coming financial year. The data for the coming year is shown below: \[\begin{array} { l r } \text { Sales } & \$ 550,000 \\ \text { Direct materials } & 50,000 \\ \text { Direct labour } & 300,000 \\ \text { Variable overhead } & 5,000 \\ \text { Advertising for business } & 5,000 \\ \text { Depreciation on equipment } & 30,000 \\ \text { Administration } & 27,000 \\ \text { Interest } & 10,000 \\ \text { Profit before tax } & 133,000 \end{array}\] Other relevant information: Management has budgeted for 20,000 direct labour hours. Overhead is applied based on direct labour hours. An estimate for the direct costs of the job to be quoted on is shown below: \[\begin{array} { l r } \text { Direct materials } & \$ 400 \\ \text { Direct labour (100 hours) } & \$ 1,500 \end{array}\] -Refer to the table above. Total budgeted indirect costs for the year are:

A) $117,000. B) $77,000. C) $72,000. D) $57,000. A) $117,000. B) $77,000. C) $72,000. D) $57,000.

Use the information below to answer the following questions. Fingers Ltd, a graphic design service, has received an inquiry from a potential customer for a quotation for a webpage design. The pricing policy of the business is based on the budgeted financial data for the coming financial year. The data for the coming year is shown below: \[\begin{array} { l r } \text { Sales } & \$ 550,000 \\ \text { Direct materials } & 50,000 \\ \text { Direct labour } & 300,000 \\ \text { Variable overhead } & 5,000 \\ \text { Advertising for business } & 5,000 \\ \text { Depreciation on equipment } & 30,000 \\ \text { Administration } & 27,000 \\ \text { Interest } & 10,000 \\ \text { Profit before tax } & 133,000 \end{array}\] Other relevant information: Management has budgeted for 20,000 direct labour hours. Overhead is applied based on direct labour hours. An estimate for the direct costs of the job to be quoted on is shown below: \[\begin{array} { l r } \text { Direct materials } & \$ 400 \\ \text { Direct labour (100 hours) } & \$ 1,500 \end{array}\] -Refer to the table above. The budgeted overhead recovery rate based on direct labour hours is:

A) $3.85 per DLH. B) $5.60 per DLH. C) $2.85 per DLH. D) $5.85 per DLH. A) $3.85 per DLH. B) $5.60 per DLH. C) $2.85 per DLH. D) $5.85 per DLH.

Use the information below to answer the following questions. Fingers Ltd, a graphic design service, has received an inquiry from a potential customer for a quotation for a webpage design. The pricing policy of the business is based on the budgeted financial data for the coming financial year. The data for the coming year is shown below: \[\begin{array} { l r } \text { Sales } & \$ 550,000 \\ \text { Direct materials } & 50,000 \\ \text { Direct labour } & 300,000 \\ \text { Variable overhead } & 5,000 \\ \text { Advertising for business } & 5,000 \\ \text { Depreciation on equipment } & 30,000 \\ \text { Administration } & 27,000 \\ \text { Interest } & 10,000 \\ \text { Profit before tax } & 133,000 \end{array}\] Other relevant information: Management has budgeted for 20,000 direct labour hours. Overhead is applied based on direct labour hours. An estimate for the direct costs of the job to be quoted on is shown below: \[\begin{array} { l r } \text { Direct materials } & \$ 400 \\ \text { Direct labour (100 hours) } & \$ 1,500 \end{array}\] -Refer to the table above. If the budgeted direct labour hours change to 25,000 hours, what will be the revised quote?

A) $2,128. B) $2,348. C) $2,208. D) $2,368. A) $2,128. B) $2,348. C) $2,208. D) $2,368.

Exam 10: Full Costing

Use the information below to answer the following questions. Scott's Fencing constructs paling fences. During last month, the fencing division erected 4,000 metres of fencing. The costs incurred by the division were as follows: Palings \ 4,000 Posts \ 5,000 Nails (no usage records) \ 500 Cement (no usage records) \ 500 Wear and tear on equip. \ 2,000 -Refer to the table above. The cost per metre of fencing is:

Free

(Multiple Choice)

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(81)

Question 1

Correct Answer:

Verified

D

Full costs are calculated in advance to assist management in:

Free

(Multiple Choice)

4.9/5

(78)

Question 2

Correct Answer:

Verified

D

When revenues and costs are dealt with on a departmental basis, each department is known as a:

Free

(Multiple Choice)

4.8/5

(85)

Question 3

Correct Answer:

Verified

A

What does full cost represent?

(Multiple Choice)

4.8/5

(85)

Question 4

Which statement concerning overhead costs is not true?

(Multiple Choice)

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(93)

Question 5

What does an overhead recovery rate represent?

(Multiple Choice)

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Question 6

Anything for which a separate measurement of cost is desired is called a:

(Multiple Choice)

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Question 7

Use the information below to answer the following questions. Jan runs a successful hairdressing salon in the CBD. The type of costs incurred in providing services to clients are: i)Hairdressers' salaries ii)Shampoo and Conditioner (no individual records kept of usage) iii)Colour and Perm Solutions (individual records kept of usage per client) iv)Electricity and Gas v)Depreciation of equipment -Refer to the information above. The direct costs incurred in providing a haircut only to a client would be:

(Multiple Choice)

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Question 8

By the end of the 20th Century, the manufacturing sector had fundamentally altered from the sector in the 1920s. The sector is now characterised by the following features, except for:

(Multiple Choice)

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Question 9

Which of these are possible cost drivers under activity-based costing?

(Multiple Choice)

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Question 10

In general, in recent times compared to the past, overhead as a percentage of a firm's total costs:

(Multiple Choice)

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Question 11

Use information below to answer the following questions. Oswald Ltd manufactures a wide range of leather suitcases. The following costs are expected to be incurred by the company during June: Ind irect labour cost \ 26,000 Direct labour time 10,000 hours Depreciation on equipment \ 20,000 Rent and Rates \ 13,000 Direct labour costs \ 98,000 Heating, lighting and power \ 4,000 Machine time 8,000 hours Indirect materials \ 5,000 Consumables \ 2,000 Direct materials used \ 50,000 Production estimate 1,000 suitcases -Refer to the table above. Total indirect costs are:

(Multiple Choice)

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(83)

Question 12

Which of the following statements is correct?

(Multiple Choice)

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(90)

Question 13

Use the information below to answer the following questions. Fingers Ltd, a graphic design service, has received an inquiry from a potential customer for a quotation for a webpage design. The pricing policy of the business is based on the budgeted financial data for the coming financial year. The data for the coming year is shown below: Sales \ 550,000 Direct materials 50,000 Direct labour 300,000 Variable overhead 5,000 Advertising for business 5,000 Depreciation on equipment 30,000 Administration 27,000 Interest 10,000 Profit before tax 133,000 Other relevant information: Management has budgeted for 20,000 direct labour hours. Overhead is applied based on direct labour hours. An estimate for the direct costs of the job to be quoted on is shown below: Direct materials \ 400 Direct labour (100 hours) \ 1,500 -Refer to the table above. Total budgeted indirect costs for the year are:

(Multiple Choice)

4.8/5

(71)

Question 14

Use the information below to answer the following questions. Fingers Ltd, a graphic design service, has received an inquiry from a potential customer for a quotation for a webpage design. The pricing policy of the business is based on the budgeted financial data for the coming financial year. The data for the coming year is shown below: Sales \ 550,000 Direct materials 50,000 Direct labour 300,000 Variable overhead 5,000 Advertising for business 5,000 Depreciation on equipment 30,000 Administration 27,000 Interest 10,000 Profit before tax 133,000 Other relevant information: Management has budgeted for 20,000 direct labour hours. Overhead is applied based on direct labour hours. An estimate for the direct costs of the job to be quoted on is shown below: Direct materials \ 400 Direct labour (100 hours) \ 1,500 -Refer to the table above. The budgeted overhead recovery rate based on direct labour hours is:

(Multiple Choice)

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(83)

Question 15

The following information is available on departmental overhead recovery rates for Major Manufacturing: Machining Department $\quad \$ 47.50$ per machine hour Assembling Department $\quad\$ 16.90$ per direct labour How much overhead will be applied to job X 123 if it uses 13 machine hours and 20 direct labour hours?

(Multiple Choice)

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Question 16

The focus in activity-based costing is on:

(Multiple Choice)

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Question 17

Activity-based costing is likely to be most beneficial to firms with which characteristics?

(Multiple Choice)

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Question 18

Use the information below to answer the following questions. Fingers Ltd, a graphic design service, has received an inquiry from a potential customer for a quotation for a webpage design. The pricing policy of the business is based on the budgeted financial data for the coming financial year. The data for the coming year is shown below: Sales \ 550,000 Direct materials 50,000 Direct labour 300,000 Variable overhead 5,000 Advertising for business 5,000 Depreciation on equipment 30,000 Administration 27,000 Interest 10,000 Profit before tax 133,000 Other relevant information: Management has budgeted for 20,000 direct labour hours. Overhead is applied based on direct labour hours. An estimate for the direct costs of the job to be quoted on is shown below: Direct materials \ 400 Direct labour (100 hours) \ 1,500 -Refer to the table above. If the budgeted direct labour hours change to 25,000 hours, what will be the revised quote?

(Multiple Choice)

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(87)

Question 19

Which of these is not a use of full cost information?

(Multiple Choice)

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Question 20

Full costs are calculated in advance to assist management in:

When revenues and costs are dealt with on a departmental basis, each department is known as a:

What does full cost represent?

Which statement concerning overhead costs is not true?

What does an overhead recovery rate represent?

Anything for which a separate measurement of cost is desired is called a:

By the end of the 20th Century, the manufacturing sector had fundamentally altered from the sector in the 1920s. The sector is now characterised by the following features, except for:

Which of these are possible cost drivers under activity-based costing?

In general, in recent times compared to the past, overhead as a percentage of a firm's total costs:

Which of the following statements is correct?

The focus in activity-based costing is on:

Activity-based costing is likely to be most beneficial to firms with which characteristics?

Which of these is not a use of full cost information?

Introduction to Accounting

Measuring and Reporting Financial Position

Measuring and Reporting Financial Performance

Introduction to Limited Companies

Regulatory Framework for Companies

Measuring and Reporting Cash Flows

Corporate Social Responsibility and Sustainability Accounting

Analysis and Interpretation of Financial Statements

Cost-Volume-Profit Analysis and Relevant Costing

Budgeting

Capital Investment Decisions

The Management of Working Capital

Financing the Business

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