MGT402 Midterm MCQs 2024 by Miss Mehwish

MGT402 · (Mega File) · Mid Term (Live Quiz) · Past Papers for Mids./Finals are also Available

1. Budgeted variable overhead Rs 90,000; Budgeted activity level 30,000 direct labor hours; Fixed

factory overhead cost Rs. 60,000; Actual activity level 35,000 direct labor hours; Actual

variable FOH cost Rs. 120,000. Fixed overhead rate = ?

o Rs. 5 per direct labor hour

o

Rs. 2 per direct labor hour ✔️

o Rs. 3 per direct labor hour

o

Q2. Which of the following cost(s) is/are included in Factory Overhead cost?

o Salaries of Factory Clerk

o Electricity bill of factory

o Factory Rent

o

All of the given ✔️

3. Overtime that is necessary in order to fulfill the customer order is called:

o Avoidable overtime

o Flex time

o

Premium Overtime ✔️

o Unavoidable overtime

4. Suppose that a worker is paid Rs. 100 per hour and he has spent 200 hours to manufacture

250 pieces during a particular month. Keeping in view the time-based wage system, total

wages of worker would be:

o Rs. 25000

o

Rs. 20,000 ✔️

o

Q5. Which of the following formula is used to compute gross wages under Halsey Premium Plan?

o

Gross Wages = (Time worked x wage rate) + % (Time saved x wage rate) ✔️

o Gross Wages = (Time saved x wage rate) + % (Time saved x wage rate)

o Gross Wages = (Time worked x wage rate) - % (Time saved x wage rate)

o Gross Wages = (Time saved x wage rate) + % (Time saved x wage rate)

6. All of the following are example(s) of labor turnover EXCEPT:

o Workers appointed against the vacancy caused due to discharge or quitting of the

organization

o

Workers employed under the expansion schemes of the company ✔️

o The total change in the composition of labor force

o Workers retrenched

7. In case of decreasing volume production level where predetermined FOH rate is not applied,

the cost per unit expected to:

o Remain unchanged for fixed cost and increase for variable cost

o Decrease for both fixed and variable costs

o Increase for fixed cost and decrease for variable cost

o

Increase for fixed cost and remain unchanged for variable cost ✔️

8. If labor force is satisfied with their wages, it may ultimately leads to:

o Increased efficiency o Reduced labor and overhead costs

o Increased production and productivity

o

9. Which of the following is CORRECT to compute labor turnover rate by using Separation

method?

o Number of workers replaced during the period + Average number of workers during the

period

o

(Number of separations in a period + Average number of workers in a period) x 100

o [{(Number of separations + number of replacement) + Average number of workers

during the period} x 100]

o

Q10. Through which of the following method, FOH absorption rate is calculated?

o Estimated FOH Cost/Prime Cost

o Estimated FOH Cost/Direct labor hours

o

o

Estimated FOH Cost/Direct labor hours ✔️

1. Cost of Goods Manufactured can be calculated as follows:

o Total factory Cost Less Opening Work in process inventory Add Closing Work in

process inventory

o Total factory Cost Less Opening Work in process inventory Less Closing Work in process

inventory

o

o Less Closing Work in process inventory

o Total factory Cost Add Opening Work in process inventory Add Closing Work in process

inventory