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Job Costing – MCQs
46 questions. Click to practice.
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1.
Given that the overhead expense for running a machine is $500,000 over 1,000 hours, what is the overhead cost rate per machine hour?
$1,500 for each machine hour
$250 for every machine hour
$500 for each machine hour
$1,000 per machine hour
2.
Given a budgeted total of 4,550 direct labor hours and a labor cost rate of $600 per hour, what is the total direct labor cost?
$4,730,000
$3,730,000
$2,730,000
$1,730,000
3.
What is the term for the procedure of allocating direct or indirect costs to a specific cost object?
cost assignment
cost forecasting
event allocation
probability allocation
cost distribution
4.
Which method combines the advantages of normal costing with the use of actual manufacturing overhead?
allocation rate method without adjustments
budget rate method with adjustments
budget rate method without adjustments
allocation rate method with adjustments
5.
Which rate is determined by dividing the total indirect costs in the pool by the actual amount of the cost allocation base?
actual manufacturing overhead rate
manufacturing overhead expenses
overhead allocation rate
direct cost rate
indirect cost percentage
6.
What term is used to describe an indirect cost that has been allocated less than required?
underapplied overhead cost
underabsorbed overhead expense
absorbed overhead cost
both A and B
7.
Given an annual budgeted indirect cost of $60,000 and a budgeted annual allocation base quantity of 3,600 units, what is the budgeted indirect cost rate per unit?
15.67 dollars per unit
16.67 dollars per unit
14.67 dollars per unit
13.67 dollars per unit
12.67 dollars per unit
8.
What type of document details the materials used for a particular product within a specific department?
Cost calculation approach
Sales procedure
Material procurement document
None of the above
9.
What is calculated by multiplying the budgeted direct labor hours by the direct labor cost rate?
anticipated overall direct labor expense
planned total direct labor cost
estimated total indirect labor expense
projected labor hours
10.
What is determined by dividing the total budgeted direct labor cost by the total budgeted direct labor hours?
Planned indirect labor cost rate
Anticipated direct labor cost rate
Budgeted direct labor cost rate
Projected indirect labor cost rate
11.
When the allocated indirect cost amounts to $1500 but the actual indirect cost incurred is $1200, how is this situation categorized?
assigned indirect cost
assigned direct cost
actual indirect cost incurred
excess allocated indirect cost
under allocated indirect cost
12.
What is determined by dividing the estimated yearly indirect expenses by the estimated annual amount of the cost allocation base?
anticipated indirect cost ratio
anticipated direct cost ratio
planned indirect cost rate
planned direct cost ratio
13.
What is the method called where the overall production cost of identical items is divided by the quantity produced?
sales cost method
job order costing
pricing cost approach
process costing method
batch costing system
14.
What is the method called that distributes overapplied or underapplied overhead across work in process, finished goods, and cost of goods sold?
proration method
appreciation method
depreciation method
adjustment method
15.
In accounting, what is the name of the document that provides evidence for making journal entries?
expense record
valuation document
source document
immediate document
transaction slip
16.
If the actual indirect costs amount to $25,000 while the allocated indirect costs are $23,000, what is the value of the overallocated indirect cost?
$48,000
-$2,000
$2,000
-$48,000
17.
What is the name of the allocation method where overheads are recalculated using actual cost rates instead of the originally budgeted rates?
allocation method using unmodified budget rates
allocation method with adjusted rates
allocation method using unmodified rates
budget rate adjustment method
none of the above
18.
In normal costing, what term is used for the manufacturing overhead that is assigned to products?
manufacturing overhead applied
labor overhead assigned
cost overhead allocated
budgeted overhead assigned
standard overhead allocated
19.
Given that the actual manufacturing overhead expenses amount to $225,000 and the total actual labor hours used as the cost allocation base is 2,500 hours, what is the overhead rate per labor hour?
$60 per labor hour
$90 per labor hour
$80 per labor hour
$70 per labor hour
$85 per labor hour
20.
What is the term used when the allocated indirect costs are less than the actual indirect costs incurred?
excessively allocated budget
insufficiently allocated budget
under allocated indirect cost
excessively allocated direct cost
none of the above
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