Cost Management Paper 2


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


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


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


Butler Co.’s 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?


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


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


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


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 Joy’s per unit prime costs and conversion costs, respectively, are


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


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


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