1|Page
WGU D196 OBJECTIVE ASSESSMENT VERSION 1,2 AND 3 EXAM
NEWEST 2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
1. Actual manufacturing overhead includes which of the following?
a.Direct labor and direct materials expenses
b.Manufacturing costs other than direct labor and direct materials
c. Manufacturing costs including direct labor and direct materials
d .Non-manufacturing costs other than direct labor and direct
materials - ANSWER-b
2. Activity based costing could be used by which of the following
companies?
a.Large commercial and industrial construction
b.Healthcare organization
c.Car manufacturing company
d. All of the above could use activity based costing - ANSWER-d
3. How are the wages of a production supervisors classified in a
manufacturing company?
,2|Page
a.Direct labor expense
b. Manufacturing overhead
c. Selling expense
d .Direct materials expense - ANSWER-b
4. Which of the following is not an example of a cost driver?
a. Administrative expenses
b. Direct labor hours
c. Machine hours
d .Number of inspections - ANSWER-a
5. What is not an example of direct materials?
a. Cost of aluminum in making an airplane
b. Cost of saws and hammers in constructing a house
c .Cost of fabric in making clothing
d. Cost of wood in making furniture - ANSWER-b
6. Which describes overapplied overhead?
,3|Page
Less has been spent than anticipated for the level of achieved
production
b. More has been spent than anticipated for the level of achieved
production
c. More has been spent than anticipated for direct labor and
materials
d None of the above - ANSWER-a
7. Which statement is true with respect to activity-based costing
(ABC) systems?
a. An ABC system helps to provide more accurate product costing
and better decision making
b. Implementing an ABC system requires very little analysis of the
factors that create overhead costs
c. Implementing an ABC system requires only a careful
calculation of total direct labor hours
d. An ABC system assumes that all products, projects, and
processes consume the overhead infrastructure services in direct
proportion to a single measure of activity. - ANSWER-a
, 4|Page
8. What is the first budget that is prepared in a manufacturing
business?
a .Direct materials
b. Production
c. Sales
d .Direct labor - ANSWER-c
9. What does a manager have control over in an investment
center? a. Costs , Revenue , and Assets
b. Investments
c .Costs and .Revenue
d. Assets - ANSWER-a
10. If budgeted costs are higher than actual costs, which
statement is true?
a. The cost variance is favorable
b .Budgeted cost are estimated too low
c. Actual costs are too high
d. The cost variance is unfavorable - ANSWER-a
WGU D196 OBJECTIVE ASSESSMENT VERSION 1,2 AND 3 EXAM
NEWEST 2025/2026 ACTUAL EXAM WITH COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS)
|ALREADY GRADED A+| ||PROFESSOR VERIFIED||
1. Actual manufacturing overhead includes which of the following?
a.Direct labor and direct materials expenses
b.Manufacturing costs other than direct labor and direct materials
c. Manufacturing costs including direct labor and direct materials
d .Non-manufacturing costs other than direct labor and direct
materials - ANSWER-b
2. Activity based costing could be used by which of the following
companies?
a.Large commercial and industrial construction
b.Healthcare organization
c.Car manufacturing company
d. All of the above could use activity based costing - ANSWER-d
3. How are the wages of a production supervisors classified in a
manufacturing company?
,2|Page
a.Direct labor expense
b. Manufacturing overhead
c. Selling expense
d .Direct materials expense - ANSWER-b
4. Which of the following is not an example of a cost driver?
a. Administrative expenses
b. Direct labor hours
c. Machine hours
d .Number of inspections - ANSWER-a
5. What is not an example of direct materials?
a. Cost of aluminum in making an airplane
b. Cost of saws and hammers in constructing a house
c .Cost of fabric in making clothing
d. Cost of wood in making furniture - ANSWER-b
6. Which describes overapplied overhead?
,3|Page
Less has been spent than anticipated for the level of achieved
production
b. More has been spent than anticipated for the level of achieved
production
c. More has been spent than anticipated for direct labor and
materials
d None of the above - ANSWER-a
7. Which statement is true with respect to activity-based costing
(ABC) systems?
a. An ABC system helps to provide more accurate product costing
and better decision making
b. Implementing an ABC system requires very little analysis of the
factors that create overhead costs
c. Implementing an ABC system requires only a careful
calculation of total direct labor hours
d. An ABC system assumes that all products, projects, and
processes consume the overhead infrastructure services in direct
proportion to a single measure of activity. - ANSWER-a
, 4|Page
8. What is the first budget that is prepared in a manufacturing
business?
a .Direct materials
b. Production
c. Sales
d .Direct labor - ANSWER-c
9. What does a manager have control over in an investment
center? a. Costs , Revenue , and Assets
b. Investments
c .Costs and .Revenue
d. Assets - ANSWER-a
10. If budgeted costs are higher than actual costs, which
statement is true?
a. The cost variance is favorable
b .Budgeted cost are estimated too low
c. Actual costs are too high
d. The cost variance is unfavorable - ANSWER-a
