Exam 2: An Introduction to Cost Terms and Purposes

A plant manufactures several different products.If a particular product is the cost object,then the wages of the plant supervisor can be classified as a(n)________.

Total manufacturing costs are comprised of ________.

All of the following are factors affecting direct versus indirect cost classification except:

Whippany manufacturing wants to estimate costs for each product they produce at its Troy plant.The Troy plant produces three products at this plant,and runs two flexible assembly lines.Each assembly line can produce all three products. Required: a.Classify each of the following costs as either direct or indirect for each product. b.Classify each of the following costs as either fixed or variable with respect to the number of units produced of each product. Depreciation on the assembly Wages of security personnel for the

R&D costs are treated as period costs because ________.

For a manufacturing company,direct material costs may be included in ________.

Swansea Manufacturing currently produces 3,000 tires per month.The following per unit data for 3,000 tires apply for sales to regular customers: The plant has capacity for 5,000 tires and is considering expanding production to 4,000 tires.What is the total cost of producing 4,000 tires?

Which of the following is a cost driver for a company's human resource costs?

Conversion costs include all direct manufacturing costs and some of the period costs including research and development costs and customer service.

All costs incurred by a company (sacrifice of a resource)are recorded in the accounting system.

Andy worked 60 hours last week for Bread Works Manufacturing.Of the 60 hours 10 hours were considered overtime,and also Tony was idle for 8 of the 60 hours due to an equipment malfunction.Andy makes $90 per hour and is paid $135 an hour (time and a half)for overtime.Andy's total compensation for that week would be ________,and assuming Bread Works charges overtime premium and idle time to indirect labor,the amount of this compensation credited to indirect labor would be ________.

Period costs are included in the cost of goods sold.

Pederson Company reported the following: What is the manufacturing cost for the ending finished goods inventory?

A cost may be direct for one cost object and indirect for another cost object.

Cost drivers casually affect total costs of a cost object over a given time span.

Fixed cost per unit falls with an increase in production volume.

A company reported revenues of $377,000,cost of goods sold of $122,000,selling expenses of $12,000,and total operating costs of $72,000.Gross margin for the year is ________.

Butler Hospital wants to estimate the cost for each patient stay.It is a general health care facility offering only basic services and not specialized services such as organ transplants. Required: a.Classify each of the following costs as either direct or indirect with respect to each patient. b.Classify each of the following costs as either fixed or variable with respect to hospital costs per day.

Denver City Manufacturing currently produces 2,000 glasses per month.The following per unit data apply for sales to regular customers and is based on 1,000 units produced. The plant has capacity for 3,000 glasses.Plant supervisor's salary is $15,000. Required: a.What is the total cost of producing 2,000 glasses? b.What is the total cost of producing 1,600 glasses? c.What is the per unit cost when producing 1,500 glasses?

The following information pertains to Alleigh's Mannequins: What is the amount of gross margin?