WGU D101 COST AND MANAGERIAL ACCOUNTING
EXAM 2024 ACTUAL EXAM 2 VERSIONS (VERSION A
AND B) COMPLETE 400 QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
/ALREADY GRADED A+
1. Which of the following organizations is most likely to use job costing? - ANSWER: A
law firm Expect/Not: Oil refinary
2. Which of the following subsidiary ledgers is used to enable managers to view
specific details of categories such as overhead costs of direct materials, indirect
manufacturing labor, supervision and engineering, plant insurance and utilities, and
plant depreciation? - ANSWER: Manufacturing Department Overhead Records
3. Which of the following is a numerator reason for using longer periods to calculate
indirect cost rates? - ANSWER: The shorter the period, the greater is the influence of
seasonal patturns on the amount of costs.
4. Calculate the budgeted manufacturing overhead rate if overhead is allocated on
the basis of direct labor hours. - ANSWER: Budgeted manufacturing overhead/
Budgeted direct labor hours
5. Which of the following is a denominator reason for using longer periods to
calculate the indirect-cost rate? - ANSWER: Longer periods avoid dissemination of
monthly fixed indirect costs over fluctuating levels of monthly output and fluctuating
quantities of the cost-allocation base.
6. Which of the following statements best describes underallocated indirect costs? -
ANSWER: Underallocated indirect costs occur when the allocated amount of indirect
costs is less than the actual or incurred amount.
7. What transaction does the following journal entry represent?
Work-in-Process Control $50,000
Manufacturing Overhead Allocated $50,000 - ANSWER: The application of $50,000
of manufacturing overhead
8. What is the difference between actual costing systems and normal costing
systems? - ANSWER: Actual costing systems use actual rates for allocating indirect
costs and normal costing systems use budgeted rates for allocating indirect costs.
9. Manufacturing Overhead Control is ? - ANSWER: debited when recording plant
depreciation.
, 10. Identify the journal entry to record usage of direct materials of $48,000 and
indirect materials of $1,200 by a job in a normal costing system. - ANSWER: Work-in-
Process Control 48,000
Manufacturing Overhead Control 1,200
Materials Control 49,200
11. Which of the following subsidiary ledgers is used to record the quantity of
materials received, issued to jobs, and the inventory balances for all materials on a
continuous basis? - ANSWER: Materials Records
12. Overallocated indirect costs occur when the allocated amount of indirect costs is
greater than the actual, incurred amount. - ANSWER: TRUE
13. A job-cost sheet is used to record and accumulate all the costs assigned to a
specific job, starting when work begins. - ANSWER: TRUE
14. Calculate the actual manufacturing overhead costs of Job? - ANSWER: Actual
annual manufacturing overhead costs / Actual annual quantity of the cost-allocation
base
15. Allocating costs using the cause-and-effect criterion is used when a cost driver
cannot be identified. - ANSWER: FALSE
16. Actual costing systems use - ANSWER: actual indirect cost rates.
17. A job-cost sheet is used to record and accumulate all the costs assigned to a
particular job, starting when work begins. - ANSWER: TRUE
18. Compute the budgeted direct-labor cost rate per direct-labor hour. - ANSWER:
Budgeted total direct-labor costs / Budgeted total direct-labor hours.
Which of the following is one of the three guidelines for refining costing systems? -
ANSWER: Identify cost-allocation bases that have cause-and-effect relationships.
Which of the following represent the main costs and limitations of an ABC costing
system? - ANSWER: Implementation measurements
Which of the following costs will have the weakest cause-and-effect relationship
with its cost allocation base in an ABC system? - ANSWER: General administration
costs
Which of the following is NOT a characteristic of overcosting? - ANSWER: Higher
market share
The U.S. Postal Service is a public service institution and does not charge consumers
in rural areas higher prices to deliver mail. Which of the following is LEAST likely a
EXAM 2024 ACTUAL EXAM 2 VERSIONS (VERSION A
AND B) COMPLETE 400 QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
/ALREADY GRADED A+
1. Which of the following organizations is most likely to use job costing? - ANSWER: A
law firm Expect/Not: Oil refinary
2. Which of the following subsidiary ledgers is used to enable managers to view
specific details of categories such as overhead costs of direct materials, indirect
manufacturing labor, supervision and engineering, plant insurance and utilities, and
plant depreciation? - ANSWER: Manufacturing Department Overhead Records
3. Which of the following is a numerator reason for using longer periods to calculate
indirect cost rates? - ANSWER: The shorter the period, the greater is the influence of
seasonal patturns on the amount of costs.
4. Calculate the budgeted manufacturing overhead rate if overhead is allocated on
the basis of direct labor hours. - ANSWER: Budgeted manufacturing overhead/
Budgeted direct labor hours
5. Which of the following is a denominator reason for using longer periods to
calculate the indirect-cost rate? - ANSWER: Longer periods avoid dissemination of
monthly fixed indirect costs over fluctuating levels of monthly output and fluctuating
quantities of the cost-allocation base.
6. Which of the following statements best describes underallocated indirect costs? -
ANSWER: Underallocated indirect costs occur when the allocated amount of indirect
costs is less than the actual or incurred amount.
7. What transaction does the following journal entry represent?
Work-in-Process Control $50,000
Manufacturing Overhead Allocated $50,000 - ANSWER: The application of $50,000
of manufacturing overhead
8. What is the difference between actual costing systems and normal costing
systems? - ANSWER: Actual costing systems use actual rates for allocating indirect
costs and normal costing systems use budgeted rates for allocating indirect costs.
9. Manufacturing Overhead Control is ? - ANSWER: debited when recording plant
depreciation.
, 10. Identify the journal entry to record usage of direct materials of $48,000 and
indirect materials of $1,200 by a job in a normal costing system. - ANSWER: Work-in-
Process Control 48,000
Manufacturing Overhead Control 1,200
Materials Control 49,200
11. Which of the following subsidiary ledgers is used to record the quantity of
materials received, issued to jobs, and the inventory balances for all materials on a
continuous basis? - ANSWER: Materials Records
12. Overallocated indirect costs occur when the allocated amount of indirect costs is
greater than the actual, incurred amount. - ANSWER: TRUE
13. A job-cost sheet is used to record and accumulate all the costs assigned to a
specific job, starting when work begins. - ANSWER: TRUE
14. Calculate the actual manufacturing overhead costs of Job? - ANSWER: Actual
annual manufacturing overhead costs / Actual annual quantity of the cost-allocation
base
15. Allocating costs using the cause-and-effect criterion is used when a cost driver
cannot be identified. - ANSWER: FALSE
16. Actual costing systems use - ANSWER: actual indirect cost rates.
17. A job-cost sheet is used to record and accumulate all the costs assigned to a
particular job, starting when work begins. - ANSWER: TRUE
18. Compute the budgeted direct-labor cost rate per direct-labor hour. - ANSWER:
Budgeted total direct-labor costs / Budgeted total direct-labor hours.
Which of the following is one of the three guidelines for refining costing systems? -
ANSWER: Identify cost-allocation bases that have cause-and-effect relationships.
Which of the following represent the main costs and limitations of an ABC costing
system? - ANSWER: Implementation measurements
Which of the following costs will have the weakest cause-and-effect relationship
with its cost allocation base in an ABC system? - ANSWER: General administration
costs
Which of the following is NOT a characteristic of overcosting? - ANSWER: Higher
market share
The U.S. Postal Service is a public service institution and does not charge consumers
in rural areas higher prices to deliver mail. Which of the following is LEAST likely a
