Inventory Costing Methods Quiz with Answers PDF Download – Test 81

MCQ 401: 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

MCQ 402: 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

MCQ 403: 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

MCQ 404: 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

MCQ 405: 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