Answer the following statements true (T) or false (F)
1. To calculate budgeted direct labor costs, multiply the number of units to be produced by the number
of projected direct labor hours. Next, multiply that total by the actual direct labor cost per hour.
2. To calculate budgeted direct labor costs, multiply the number of units to be produced by the number
of projected direct labor hours. Next, multiply that total by the average direct cost per hour.
3. The manufacturing overhead budget calculates the budgeted overhead cost for the year and also the
predetermined overhead allocation rate for the year.
4. The manufacturing overhead budget calculates the budgeted overhead cost for the year, but not the
predetermined overhead allocation rate for the year.
5. In preparing the master budget, the manufacturing overhead is the last period cost to consider.
1. FALSE
To calculate budgeted direct labor costs, multiply the number of units to be produced by the
number of projected direct labor hours per unit. Then multiply that total by the average direct labor cost
per hour.
2. TRUE
3. TRUE
4. FALSE
5. FALSE
In preparing the master budget, the manufacturing overhead is the last product cost to
consider.
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When using the indirect method for preparing the statement of cash flows, all of the following will appear in the operating activities section except:
a. Increase in deferred tax. b. Depreciation expense on leased assets. c. Interest expense. d. An increase in long-term liabilities.
Those who discover that they have been the victim of misrepresentation, fraud, duress, undue influence, or mistake must act promptly to rescind or disaffirm their contracts.
Answer the following statement true (T) or false (F)
Price discrimination is legal when a ________
A) manufacturer and reseller have agreed upon a specified retail price for a product B) manufacturer sells to retailers in different markets C) seller can prove its costs are different when selling to different retailers D) seller advertises prices that are not actually available to consumers E) seller has not communicated with competitors before announcing prices
A concert hall, employing both ticket takers and ushers to seat patrons, behaves typically as which of the following?
A) multiple-server, single-phase system B) multiple-server, multiphase system C) single-server, single-phase system D) single-server, multiphase system E) multiple-server, cross-phase system