Direct and Indirect costs

Q1: The distinction between indirect and direct costs depends on:

a. whether a cost differs between alternatives.
b. whether a cost is variable or fixed.
c. whether a cost is a product or a period cost.
d. whether a cost can be easily traced to the cost object under consideration.

Q2. Which of the following would usually be found on a job cost sheet under a normal cost system?

a) Item A
b) Item B
c) Item C
d) Item D

Q3: What source document is used to determine the actual amount of direct materials to record on a job cost sheet?

A)bill of materials
B)production order
C)materials purchase order
D)materials requisition form
Q4 : The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $3,044. A total of 46 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $15 per labor-hour. The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $13 per machine-hour. The total cost for the job on its job cost sheet would be:

For solutions towards the above problems email : or chat with us on live

Submit Assignment

Fill in the form below or give us a call and we'll contact you. We endeavour to answer all enquiries within 24-48 hours on business days.