Normal Costings MCQs with Answers PDF Download – Test 86

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

If target operating income is $45000 and contribution margin per unit is $500, then number of units must be sold to earn targeted operating incomes will be

1. 100 units
2. 90 units
3. 110 units
4. 120 units

The measuring of capacity in terms of normal capacity utilization is also termed as

1. output demanded
2. input demanded
3. capacity supplied
4. capacity borrowed

The second step, in constant gross margin percentage Net Realizable Value (NRV) method, to allocate joint cost is to compute

1. allocated joint costs
2. cost of split off point
3. Gross margin percentage
4. total production cost of each product

In stand-alone revenue-allocation method, the type of weights available for this method are

1. selling prices as weights
2. unit costs as weights
3. physical units as weights
4. all of above