When a manufacturing company has a highly automated manufacturing plant, what is probably the most appropriate basis of applying factory overhead costs to work in process?
a. Machine hours
b. Cost of materials used
c. Direct labor hours
d. Direct labor dollars
a
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In a B/AR/CR process, which of the following data stores is least likely to interact with a process called "perform billing"?
a. vendor master data b. customer master data c. accounts receivable master data d. sales event data
Mazuka, Inc. has a division that manufactures a component that sells for $165 and has a variable cost of $35. Another division of the company wants to purchase the component. Fixed cost per unit of the component is $22. What is the transfer price if the division is operating at full capacity?
A) $57 B) $187 C) $165 D) $22
Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Cosi expects to incur $870,000 of overhead during the next period, and expects to use 57,000 labor hours at a cost of $10.00 per hour. What is Cosi Company's predetermined overhead rate?
A. 152.63%. B. 1526%. C. 70.02%. D. 6.55%. E. 65.5%.
In a process costing system, companies typically end each period with only Finished Goods Inventory.
Answer the following statement true (T) or false (F)