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three products. The direct costs of each of the five functions are traced
directly to the three products. The indirect costs of each of the five
business functions are collected into five separate cost pools and then
assigned to the three products using appropriate allocation bases. The
allocation base that would most likely be the best for allocating the
indirect costs of the distribution function is
Question 4 (COST-0051)
Which of the following is assigned to goods that were either purchased
or manufactured for resale?
Question 5 (PLAN-0045)
A company manufactures a product that has the direct material standard
cost presented below. Budgeted and actual information for the current
month for the manufacture of the finished product and the purchase and
use of the direct material are also presented.Standard cost for direct
material1.60 lb. @ $2.50 per lb. = $4.00
Finished goods (in units)
Direct material usage (in pounds)
Direct material purchases (in pounds)
Total cost of direct material purchases
The direct material price variance for the current month is
Question 6 (PLAN-0041)
A favorable material price variance coupled with an unfavorable
material usage variance would most likely result from