Normal Costings Multiple Choice Questions with Answers – PDF Download

MCQ 1: If the budgeted annual indirect cost is $60000, budgeted annual quantity of cost allocation base is $3600, then budgeted indirect cost rate will be:

1. 15.67 per piece
2. 16.67 per piece
3. 14.67 per piece
4. 13.67 per piece

MCQ 2: The manufacturing overhead cost allocated to individual jobs is classified as:

1. manufacturing overhead allocated
2. cost overhead applied
3. manufacturing overhead applied
4. both A and C

MCQ 3: If the budgeted annual indirect cost is $85000 and budgeted annual quantity of cost allocation base is $7500, then budgeted indirect cost rate would be:

1. 112.34 per piece
2. 113.34 per piece
3. 111.34 per piece
4. 110.34 per piece

MCQ 4: In normal costing, the manufacturing overhead allocated is also called:

1. manufacturing overhead applied
2. labor overhead applied
3. cost overhead applied
4. budget overhead applied

MCQ 5: If the budgeted indirect cost arte is $115 and the budgeted cost allocation base is $830 per hour, then the annual indirect cost (budgeted) will be:

1. $93,450
2. $94,560
3. $96,450
4. $95,450