Single Rate and Dual Rate Methods Multiple Choice Questions with Answers – PDF Download

MCQ 1: The method which divides the support department cost into two dimensions such as fixed and variable cost pool is classified as:

1. sales mix allocation method
2. dual-rate cost-allocation method
3. single rate cost allocation method
4. quantity variance allocation method

MCQ 2: Support department cost allocation method which makes no difference between variable and fixed costs is classified as:

1. sales mix allocation method
2. dual-rate cost-allocation method
3. single rate cost allocation method
4. quantity variance allocation method

MCQ 3: If the employees of division A work for 8000 hours for $90 per hour, then the rate must be paid in division B in accordance of single rate method will be:

1. $90 per hour
2. less than $90 per hour
3. greater than $90 per hour
4. none of above

MCQ 4: Considering dual rate method, if employees work for 8500 budgeted hours at $120 per hour, and work for 9500 actual hours at $110 per hour, then the total cost would be:

1. $2,078,000
2. $3,078,000
3. $2,065,000
4. $3,065,000