Cost Management Paper 2

1

Which of the following is a period cost rather than a product cost of a manufacturer?






2

Direct labor costs are wages paid to
Machine Operators
Factory Supervisors
Corporate Vice-President






3


"Bright Co. manufactures light bulbs. The following salaries were included in Brightís manufacturing costs for the year:"
Machine operators $145,000
Factory supervisors 60,000
Machinery mechanics 25,000
What is the amount of Brightís direct labor for the year?






4


Butler Co.ís production costs for July are
Direct materials $120,000
Direct labor 108,000
Factory overhead 6,000
What is the amount of costs traceable to specific products?






5

Atlantic Co. used $200,000 of direct materials during June. At June 30, Atlanticís direct materials inventory was $30,000 more than it was at June 1. What were Atlanticís direct materials purchases during June?






6

A firm calculates that its annual cost to hold excess goods in order to avoid any chance of running out of inventory is $50,000. This $50,000 is an example of a






7

Roberta Johnson is the manager of Sleep-Well Inn, one of a chain of motels located throughout the U.S. An example of an operating cost at Sleep-Well that is both direct and fixed is






8


Mello Joy produces 200,000 units of a good that has the following costs:
Direct material costs $2,000,000
Direct manufacturing labor costs 1,000,000
Indirect manufacturing labor costs 600,000
Mello Joyís per unit prime costs and conversion costs, respectively, are






9

Using absorption costing, fixed manufacturing overhead costs are best described as






10

The allocation of costs to particular cost objects allows a firm to analyze all of the following except






Result

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