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WGU D196 TEST BANK FOR OA AND
PREASSESSMENT REVIEW 2026/2027 WITH 450
ACTUAL EXAM QUESTIONS AND CORRECT
ANSWERS (100% CORRECT ANSWERS) D196
PRACTICE EXAM 2026 (BRAND NEW!!)
A company reports these data:
Total sales revenue = $250,000
Number of units sold = 50,000 units
Variable costs = $100,000
If the company is operating at its break-even point, what is the
company's total contribution margin?
$100,000
$200,000
$150,000
$50,000 ......ANSWER......$150,000
A company reports these data:
Price per unit = $25
Variable costs per unit = $15
Fixed costs = $15,000
Given these data, what is the variable cost ratio?
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60%
50%
40%
20% ......ANSWER......60%
Why is the concept of relevant range important to a manager?
Outside the relevant range, the variable cost per unit can change.
Inside the relevant range, the variable cost per unit can increase.
Outside the relevant range, the variable cost per unit stays constant.
Inside the relevant range, the total fixed cost can change.
......ANSWER......Outside the relevant range, the variable cost per unit
can change.
Which statement correctly describes applied manufacturing overhead?
The amount of manufacturing overhead that is assigned to the goods
produced
The total manufacturing costs other than direct labor
The amount of manufacturing overhead that is assigned to each
employee
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The total manufacturing costs other than direct materials
......ANSWER......The amount of manufacturing overhead that is
assigned to the goods produced
What is the label given to the quantity computed as estimated
overhead costs divided by estimated level of activity?
Underapplied overhead rate
Forecasted overhead rate
Predetermined overhead rate
Indirect overhead rate ......ANSWER......Predetermined overhead rate
In a job order costing system, what is the proper accounting for a
product cost?
It is reported as a part of cost of goods sold.
It is reported as a part of administrative expenses.
It is reported as a part of general expenses.
It is reported as an expense when it occurs. ......ANSWER......It is
reported as a part of cost of goods sold.
Which item is a period cost?
Rent on factory robotic equipment in an airplane manufacturer
Wages of maintenance workers in the factory building
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Utility bills to heat the headquarters building
Wages for factory quality control inspectors ......ANSWER......Utility bills
to heat the headquarters building
Which statement is true with respect to activity-based costing (ABC)
systems?
An ABC system allocates overhead based on multiple activities.
Implementing an ABC system requires very little analysis of the factors
that create overhead costs.
An ABC system completely eliminates all overhead costs.
Implementing an ABC system requires only a careful calculation of total
direct labor hours. ......ANSWER......An ABC system allocates overhead
based on multiple activities.
Implementing an ABC system requires very little analysis of the factors
that create overhead costs.
How is overhead allocated in an ABC system?
Sum of materials and labor cost multiplied by number of units
Budgeted overhead multiplied by expected number of direct labor
hours
You Selected
Cost pool multiplied by number of cost driver events
WGU D196 TEST BANK FOR OA AND
PREASSESSMENT REVIEW 2026/2027 WITH 450
ACTUAL EXAM QUESTIONS AND CORRECT
ANSWERS (100% CORRECT ANSWERS) D196
PRACTICE EXAM 2026 (BRAND NEW!!)
A company reports these data:
Total sales revenue = $250,000
Number of units sold = 50,000 units
Variable costs = $100,000
If the company is operating at its break-even point, what is the
company's total contribution margin?
$100,000
$200,000
$150,000
$50,000 ......ANSWER......$150,000
A company reports these data:
Price per unit = $25
Variable costs per unit = $15
Fixed costs = $15,000
Given these data, what is the variable cost ratio?
,2|Page
60%
50%
40%
20% ......ANSWER......60%
Why is the concept of relevant range important to a manager?
Outside the relevant range, the variable cost per unit can change.
Inside the relevant range, the variable cost per unit can increase.
Outside the relevant range, the variable cost per unit stays constant.
Inside the relevant range, the total fixed cost can change.
......ANSWER......Outside the relevant range, the variable cost per unit
can change.
Which statement correctly describes applied manufacturing overhead?
The amount of manufacturing overhead that is assigned to the goods
produced
The total manufacturing costs other than direct labor
The amount of manufacturing overhead that is assigned to each
employee
,3|Page
The total manufacturing costs other than direct materials
......ANSWER......The amount of manufacturing overhead that is
assigned to the goods produced
What is the label given to the quantity computed as estimated
overhead costs divided by estimated level of activity?
Underapplied overhead rate
Forecasted overhead rate
Predetermined overhead rate
Indirect overhead rate ......ANSWER......Predetermined overhead rate
In a job order costing system, what is the proper accounting for a
product cost?
It is reported as a part of cost of goods sold.
It is reported as a part of administrative expenses.
It is reported as a part of general expenses.
It is reported as an expense when it occurs. ......ANSWER......It is
reported as a part of cost of goods sold.
Which item is a period cost?
Rent on factory robotic equipment in an airplane manufacturer
Wages of maintenance workers in the factory building
, 4|Page
Utility bills to heat the headquarters building
Wages for factory quality control inspectors ......ANSWER......Utility bills
to heat the headquarters building
Which statement is true with respect to activity-based costing (ABC)
systems?
An ABC system allocates overhead based on multiple activities.
Implementing an ABC system requires very little analysis of the factors
that create overhead costs.
An ABC system completely eliminates all overhead costs.
Implementing an ABC system requires only a careful calculation of total
direct labor hours. ......ANSWER......An ABC system allocates overhead
based on multiple activities.
Implementing an ABC system requires very little analysis of the factors
that create overhead costs.
How is overhead allocated in an ABC system?
Sum of materials and labor cost multiplied by number of units
Budgeted overhead multiplied by expected number of direct labor
hours
You Selected
Cost pool multiplied by number of cost driver events
