MULTIPLE CHOICE

Choose the best answer.

The property tax on the building that houses the manufacturing facility of a company
is: *
A period cost
An opportunity cost
A product cost
A variable cost

A company observed a decrease in the cost per unit. All other things being equal, which
of the following is probably true? *
2 points

The company is studying a variable cost, and total volume has increased.
The company is studying a variable cost, and total volume has decreased.
The company is studying a fixed cost, and total volume has increased.
The company is studying a fixed cost, and total volume has decreased.
The company is studying a fixed cost, and total volume has remained constant.

Which of the following cost estimation method relies only on two data points? *
2 points

Account analysis
High-low method
Scattergraph method
Least squares regression analysis

Webster has the following budgeted costs at its anticipated production level (expressed
in hours): variable overhead, P150,000; fixed overhead, P240,000. If Webster now
revises its anticipated production slightly downward, it would expect: *
2 points

total fixed overhead of P240,000 and a lower hourly rate for variable overhead.
total fixed overhead of P240,000 and the same hourly rate for variable overhead.
total fixed overhead of P240,000 and a higher hourly rate for variable overhead.
total variable overhead of less than P150,000 and a lower hourly rate for variable overhead.
total variable overhead of less than P150,000 and a higher hourly rate for variable overhead.

Recording jobs completed would include a credit to: *

Finished goods
Raw materials
Work in process
Cost of goods sold

Which of the following statements about the visual fit method is/are correct? A: The
method results in creation of a scatter diagram. B: The method is not totally objective
because of the manner in which the cost line is determined. C: The method is especially
helpful in the determination of outliers. *
2 points

A only
A and B
A and C
A, B, and C

Variable costs are costs that: *

vary inversely proportional with changes in activity
Remain constant as activity changes
Decrease on a per unit basis as activity increases
Remain constant on a per unit basis as activity changes

Product costs are: *

Treated in the same manner as period costs
Subtracted from cost of goods sold
Inventoried
Expensed when incurred

Under a job-order costing system, the amount transferred from Work in Process to
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Finished Goods is the sum of the costs charged to all jobs: *
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 2 points

started in process during the period.

in process during the period.
completed and sold during the period.
completed during the period.

Beginning work in process is equal to: *

Total manufacturing cost incurred minus ending work in process.
Cost of goods manufactured plus ending work in process inventory minus total manufacturing
costs incurred.
Cost of goods manufactured minus ending work in process inventory plus total manufacturing
costs incurred.
Ending work in process plus total manufacturing costs incurred.

Problem Solving
Indicate your final answer on this form.
Attach your handwritten solution for these problems.

How much is total cost of goods manufactured? *

5 points

80,600

Your answer

Using the high-low method, how much is the total cost of producing 130 grams of
honey? *
5 points

1240

Your answer

Bradbeer Corporation uses direct labor-hours in its predetermined overhead rate. At the
beginning of the year, the estimated direct labor-hours were 17,500 hours. At the end
of the year, actual direct labor-hours for the year were 16,000 hours, the actual
manufacturing overhead for the year was P233,000, and manufacturing overhead for
the year was underapplied by P15,400. How much is the estimated manufacturing
overhead at the beginning of the year which was used in the predetermined overhead
rate *
5 points

238,000

Your answer

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 How much is the cost of goods manufactured? *
5 points

1,081,440

Your answer

The following information was taken from the record of Anton Manufacturing Inc.:
Increase in finished goods, P100,000; Increase in work in process, P110,000; Decrease
in raw materials P96,000; Total cost placed in process, P5,000,000; Materials purchases,
P960,000; Direct labor, P880,000; Work in process, beg. P1,600,000. How much factory
overhead was applied to production? *
5 points
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 3,064,000

Your answer

How much is the total cost of producing 150 grams of honey if the company uses the
least squares method. *
5 points

1436

Your answer

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