WGU D101 - Cost & Managerial Accounting Pre-Assessment with Formual
1. Job order costing- When is it The customer has to provide the specifications of the
product or
appropriate to use job order service. In order to use job order costing you must be
able to sep-
costing? arate and identify each job (product) being produced.
Companies that cannot specifically identifying and separate
each job they use processing costing.
2. Which figures are Accounting for manufacturing cost is not the same process
used in as ac-
computing a predetermined counting for direct materials and direct labor costs.
Because manu-
overhead rate? overhead for the year was $600,000.
Actual direct materials purchases
were
$380,000. Actual direct la- bor cost
3. A company uses direct
was $700,000. Actu- al direct labor
la- bor hours to apply
hours for the year were 20,000
man- ufacturing
hours.
overhead. Bud- geted
manufacturing over-
head for the coming
year is $640,000.
Budgeted di-
rect materials purchases
are
$400,000. Budgeted
direct labor cost is
$720,000. Bud- geted
direct labor hours for
the coming year are
16,000 hours. Actual
manufactur- ing
1/
3
1. Job order costing- When is it The customer has to provide the specifications of the
product or
appropriate to use job order service. In order to use job order costing you must be
able to sep-
costing? arate and identify each job (product) being produced.
Companies that cannot specifically identifying and separate
each job they use processing costing.
2. Which figures are Accounting for manufacturing cost is not the same process
used in as ac-
computing a predetermined counting for direct materials and direct labor costs.
Because manu-
overhead rate? overhead for the year was $600,000.
Actual direct materials purchases
were
$380,000. Actual direct la- bor cost
3. A company uses direct
was $700,000. Actu- al direct labor
la- bor hours to apply
hours for the year were 20,000
man- ufacturing
hours.
overhead. Bud- geted
manufacturing over-
head for the coming
year is $640,000.
Budgeted di-
rect materials purchases
are
$400,000. Budgeted
direct labor cost is
$720,000. Bud- geted
direct labor hours for
the coming year are
16,000 hours. Actual
manufactur- ing
1/
3
