Inventory Costing Methods Quiz with Answers PDF Download – Test 81

The budgeted variable overhead rate, is multiplied to an actual quantity of allocation base, is to calculate variable manufacturing cost of overheads in

1. direct costing method
2. indirect costing method
3. actual costing method
4. normal costing method

In accounting, the cost which is predicted to be incurred or future cost is known as

1. past cost
2. incurred cost
3. actual cost
4. budgeted cost

If the budgeted total direct labor hours are 5500 and budgeted direct labor cost is $755000, then the budgeted direct labor cost rate is

1. $138 per labor hour
2. $137.27 per hour
3. $140 per labor hour
4. $142 per labor hour

In normal costing, an actual quantity of cost allocation used base is multiplied to budgeted fixed overhead rates to calculate the

1. indirect manufacturing overhead cost
2. direct manufacturing overhead cost
3. fixed manufacturing overhead cost
4. variable manufacturing overhead cost

The difference of current assets and the working capital is equal to

1. current liabilities
2. long-term liabilities
3. residual assets value
4. net residual income