Normal Costings Quiz with Answers PDF Download – Test 189

MCQ 941: In normal costing, the budgeted rate is multiplied to an actual quantity, which have been used as the allocation base to calculate:

1. budget overhead applied
2. manufacturing overhead applied
3. labor overhead applied
4. none of above

MCQ 942: The second ranked product in incremental revenue allocation method is termed as:

1. primary product
2. First incremental product
3. Second incremental product
4. Third incremental product

MCQ 943: An implementation of planning decisions and evaluating performance is classified as:

1. control
2. evaluation
3. deciding
4. performing

MCQ 944: If the actual payment to labor is $1200 and the budgeted rate is $1000, then the labor price variance would be:

1. less than zero
2. equal to zero
3. favorable
4. unfavorable

MCQ 945: If the production is greater than sales, then operating income under variable costing is:

1. negative income value
2. lower income
3. higher income
4. zero dividends