WGU D101 CERTIFICATION SCRIPT 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◍ What is the soft drink company's equivalent number of units in ending
inventory for this period?.
Answer: 3,000 bottles for direct materials and 1,200 bottles for conversion
costs
◍ Activity Rate.
Answer: Activity Cost Pool Overhead / Total Cost Driver Activity
◍ break even in dollars.
Answer: fixed costs / contribution margin ratio
◍ Which costs are included in the computation of total manufacturing costs?.
Answer: Direct materials, direct labor, and applied manufacturing overhead
◍ The Production Budget.
Answer: Sales Budget + Ending Finished Goods Inventory - Beginning
Finished Goods Inventory
◍ What is a common cause for a labor efficiency variance ?.
Answer: Machinery breakdowns
◍ What is the soft drink company's equivalent number of units for conversion
costs for this period?.
Answer: 63,200 bottles
◍ Predetermined overhead rate (POR).
Answer: Estimated Manufacturing Overhead / Expected Annual Operating
Activity
◍ The plant manager for a company has been concerned recently with the way
in which workers have been assigned to different projects . The plant
, manager has observed highly trained workers working on relatively simple
jobs . The plant manager has also looked at the time records and has seen a
lot of extra money being paid for overtime hours . The plant manager has
asked to see the labor rate variance . Actual results Number of units
produced : 500 units Number of labor hours worked : 2,300 hours Total
labor cost : $ 85,000 The company has established the following standards :
Number of labor hours to produce one unit : 4 hours Standard labor rate : $
35.00 per hour What is the company's computed labor rate variance ?.
Answer: $ 4,500 U
◍ Division A has 10,000 units, 50 batches, and 4 product lines.How much
overhead cost should be allocated to Division A?.
Answer: $580,000
◍ Degree of Operating Leverage.
Answer: Contribution Margin/Operating Income
◍ Variable Costs.
Answer: Variable Cost per Unit × Number of Units
◍ Contribution Margin.
Answer: Sales Revenue – Variable Costs
◍ Which of the following are always considered 100 % complete when
calculating equivalent units ?.
Answer: Units started and completed during the period .
◍ Labor Rate Variance.
Answer: (Actual Labor Rate - Standard Labor Rate) × Actual Hours Worked
◍ For a certain year, a bookstore had actual manufacturing overhead of
$117,000 and applied manufacturing overhead of $100,000.What should be
included in the journal entry necessary to close the manufacturing overhead
account?.
Answer: Debit to cost of goods sold for $17,000.
◍ What describes when an activity - based costing ( ABC ) overhead
QUESTIONS WITH SOLUTIONS GRADED A+
◍ What is the soft drink company's equivalent number of units in ending
inventory for this period?.
Answer: 3,000 bottles for direct materials and 1,200 bottles for conversion
costs
◍ Activity Rate.
Answer: Activity Cost Pool Overhead / Total Cost Driver Activity
◍ break even in dollars.
Answer: fixed costs / contribution margin ratio
◍ Which costs are included in the computation of total manufacturing costs?.
Answer: Direct materials, direct labor, and applied manufacturing overhead
◍ The Production Budget.
Answer: Sales Budget + Ending Finished Goods Inventory - Beginning
Finished Goods Inventory
◍ What is a common cause for a labor efficiency variance ?.
Answer: Machinery breakdowns
◍ What is the soft drink company's equivalent number of units for conversion
costs for this period?.
Answer: 63,200 bottles
◍ Predetermined overhead rate (POR).
Answer: Estimated Manufacturing Overhead / Expected Annual Operating
Activity
◍ The plant manager for a company has been concerned recently with the way
in which workers have been assigned to different projects . The plant
, manager has observed highly trained workers working on relatively simple
jobs . The plant manager has also looked at the time records and has seen a
lot of extra money being paid for overtime hours . The plant manager has
asked to see the labor rate variance . Actual results Number of units
produced : 500 units Number of labor hours worked : 2,300 hours Total
labor cost : $ 85,000 The company has established the following standards :
Number of labor hours to produce one unit : 4 hours Standard labor rate : $
35.00 per hour What is the company's computed labor rate variance ?.
Answer: $ 4,500 U
◍ Division A has 10,000 units, 50 batches, and 4 product lines.How much
overhead cost should be allocated to Division A?.
Answer: $580,000
◍ Degree of Operating Leverage.
Answer: Contribution Margin/Operating Income
◍ Variable Costs.
Answer: Variable Cost per Unit × Number of Units
◍ Contribution Margin.
Answer: Sales Revenue – Variable Costs
◍ Which of the following are always considered 100 % complete when
calculating equivalent units ?.
Answer: Units started and completed during the period .
◍ Labor Rate Variance.
Answer: (Actual Labor Rate - Standard Labor Rate) × Actual Hours Worked
◍ For a certain year, a bookstore had actual manufacturing overhead of
$117,000 and applied manufacturing overhead of $100,000.What should be
included in the journal entry necessary to close the manufacturing overhead
account?.
Answer: Debit to cost of goods sold for $17,000.
◍ What describes when an activity - based costing ( ABC ) overhead
