Question

1.

What is a balanced scorecard? budgeting tool tool for making sure debits equal credits. a way to insure profits balance with sales minus expenses management tool that recognizes a company's responsibility to all its stakeholders

2.

Jones company makes two products A & B. Here is some financial information about those products.

                         A    B   

Direct labor    $35,000 $25,000

Direct materials              $40,000 $30,000

If ABC computed overhead at the rate of 50 cents per labor dollar, what is the total cost for product A?

		$107000
		$33000
		$82,500
		$108000

3.

Which of the following is NOT included in conversion costs?

		Direct materials
		Manufacturing Overhead
		Direct labor
		Indirect labor

4.

Which of the following is NOT an example of indirect materials?

		wood in a desk
		screws
		lubricants
		nails

2.

Answer 1

Solution: 1
	Balance score card is management tool that recognizes a company's responsibility to all its stakeholders
	Answer = Option 4 = management tool that recognizes a company's responsibility to all its stakeholders
Solution: 2
	Caclulation of total product Cost of Product A
	Direct Materials	$                    40,000
	Direct Labor	$                    35,000
	Overhead (50% of $ 35,000)	$                    17,500
	Total Cost	$                    92,500
	Answer = Total Cost of Product A = $ 92,500
	(Note: Option given in question is incorrect)
Solution: 3
	Direct Material is not a conversion cost
	Answer = Option 1 = Direct Materials
Solution: 4
	Wood in desk is not an example of indirect material because wood
	in desk is direct material cost
	Answer = Option 1 = Wood in Desk