101) If Department C uses machine hours to allocate overhead to units of product, the overhead rate per machine hour for Department C would be

A) $35.67.

B) $29.00.

C) $32.66.

D) $39.67.

102) If Department D uses direct labour hours to allocate overhead to units of product, the overhead rate per direct labour hour for Department D would be

A) $22.93.

B) $18.13.

C) $16.80.

D) $16.00.

103)  Estimates relating to a job that Meesen Inc. plans to bid on are as follows:

Direct materials

$1,000 

Direct labour

$   600 

Machine hours in Department C

20 

Direct labour hours in Department D

30 

The estimate for the cost of the job would be

A) $2,393.

B) $2,288.

C) $1,481.

D) $3,081.

104) If the step-down method is used and the costs of the service department with the greatest total cost are allocated first, Department B costs allocated to Department D would be

A) $36,923.

B) $30,463.

C) $24,615.

D) $21,450.

105) If the step-down method is used, Department A costs allocated to Department C would be

A) $60,649.

B) $62,769.

C) $62,980.

D) $69,280.

106) The necessary cost of an activity that cannot be eliminated without affecting a product’s value to the customer is a

A) period cost.

B) product cost.

C) prime cost.

D) value-added cost.

107) Which of the following is NOT an example of a non-value-added cost?

A) Receiving inventory

B) Transporting work-in-process

C) Warehousing inventory

D) Assembling raw materials

108) In a just-in-time production system,

A) customer orders drive the production process.

B) an organization purchases materials in large quantities in order to receive quantity discounts.

C) goods are produced ahead of time to protect against stockouts.

D) inventory levels are maintained as high as possible.

109) The time from initiating production to delivering the goods to the customer is referred to as

A) just-in-time.

B) non-value-added time.

C) production cycle time.

D) cost measuring time.

110) Which of the following is NOT a factor to the success of just-in-time systems?

A) The focus on quality

B) Inflexible production operations

C) Short production cycle times

D) Smooth flow of production

111) Two dimensions are important in flexible production operations:

A) material flexibility and employee flexibility.

B) employee flexibility and facilities flexibility.

C) supplier flexibility and customer flexibility.

D) facilities flexibility and supplier flexibility.



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