If the amount of factory overhead cost incurred exceeds the amount applied, the factory overhead account will have a: a. debit balance and be underapplied b. debit balance and be overabsorbed c. credit balance and be overapplied d. debit balance and be overapplied
____ 61. If the amount of
|
a. |
debit balance and be underapplied |
|
b. |
debit balance and be overabsorbed |
|
c. |
credit balance and be overapplied |
|
d. |
debit balance and be overapplied |
____ 62. Which method of evaluating capital investment proposals uses present value concepts to compute the
|
a. |
|
|
b. |
Cash payback |
|
c. |
|
|
d. |
Average rate of return |
____ 63. Which of the following is not a commonly used approach to setting transfer prices?
|
a. |
Market price approach |
|
b. |
Revenue price approach |
|
c. |
Negotiated price approach |
|
d. |
Cost price approach |
____ 64. The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basis is:
|
a. |
Process |
|
b. |
Departmental |
|
c. |
first-in, first-out |
|
d. |
job order |
____ 65. A business received an offer from an exporter for 20,000 units of product at $15 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available:
|
Domestic unit sales price |
$21 |
|
Unit manufacturing costs: |
|
|
Variable |
$12 |
|
Fixed |
$5 |
What is the amount of the gain or loss from acceptance of the offer?
|
a. |
$35,000 loss |
|
b. |
$40,000 gain |
|
c. |
$60,000 gain |
|
d. |
$50,000 gain |
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