Question 1

An actual overhead rate can be calculated

Accepted Answer

A) at the beginning of the year. 
B) at the end of each month. 
C) at the beginning of each month. 
D) either at the beginning of the year or at the beginning of the month. 
A) at the beginning of the year. 
B) at the end of each month. 
C) at the beginning of each month. 
D) either at the beginning of the year or at the beginning of the month.

Question 2

In job-order costing, departmental overhead rates and activity-based costing affect only the application of overhead.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following activity levels has the advantage of using the same activity level year after year and, in turn, producing less fluctuation from year to year in the assignment of per-unit overhead cost?

Accepted Answer

A) Actual activity level 
B) Normal activity level 
C) Theoretical activity level 
D) Practical activity level 
A) Actual activity level 
B) Normal activity level 
C) Theoretical activity level 
D) Practical activity level

Question 4

A work-in-process inventory file is

Accepted Answer

A) a file of electronic job-order cost sheets. 
B) a file cabinet where work tickets are stored. 
C) a file of electronic materials requisitions. 
D) none of these. 
A) a file of electronic job-order cost sheets. 
B) a file cabinet where work tickets are stored. 
C) a file of electronic materials requisitions. 
D) none of these.

Question 5

Unit cost is a critical piece of information for a manufacturing business as well as a service company.

Accepted Answer

A) True 
 B)False

Question 6

Manufacturing overhead consists of all

Accepted Answer

A) costs other than direct materials. 
B) manufacturing costs other than direct materials. 
C) costs other than direct materials and direct labor. 
D) manufacturing costs other than direct materials and direct labor. 
A) costs other than direct materials. 
B) manufacturing costs other than direct materials. 
C) costs other than direct materials and direct labor. 
D) manufacturing costs other than direct materials and direct labor.

Question 7

Unit cost information is needed for

Accepted Answer

A) costing inventory. 
B) financial reporting requirements. 
C) decision making. 
D) all of the above. 
A) costing inventory. 
B) financial reporting requirements. 
C) decision making. 
D) all of the above.

Question 8

A pure service organization has

Accepted Answer

A) no raw materials, no inventories, and a definite separation between the plant and the customer. 
B) raw materials, tangible items, and no separation between the plant and the customer. 
C) no raw materials, no tangible items, and no separation between the plant and the customer. 
D) none of these. 
A) no raw materials, no inventories, and a definite separation between the plant and the customer. 
B) raw materials, tangible items, and no separation between the plant and the customer. 
C) no raw materials, no tangible items, and no separation between the plant and the customer. 
D) none of these.

Question 9

Under normal costing, which of the following statements is true regarding factory overhead?

Accepted Answer

A) The balance in factory overhead at the end of the accounting period is closed. 
B) Different overhead rates are used for different quantities of predicted activity. 
C) The balance in factory overhead at the end of the accounting period is kept open. 
D) The immaterial balance in factory overhead at the end of the accounting period is allocated to the cost of goods sold and inventory accounts. 
A) The balance in factory overhead at the end of the accounting period is closed. 
B) Different overhead rates are used for different quantities of predicted activity. 
C) The balance in factory overhead at the end of the accounting period is kept open. 
D) The immaterial balance in factory overhead at the end of the accounting period is allocated to the cost of goods sold and inventory accounts.

Question 10

Robinson Corporation constructs new homes. Assume that Robinson uses a job costing system. During July 2018, the following transactions occurred: Robinson purchased $4,500 of lumber on account.
Robinson used $3,750 of lumber in production and incurred 50 hours of direct labor hours at $15 per hour.
Depreciation of $1,500 on equipment used to build new houses was recorded.
A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash.
The journal entry to record the requisition of lumber for Robinson would include a

Accepted Answer

A) debit to Work-in-Process of $4,500. 
B) debit to Materials Inventory of $3,750. 
C) credit to Finished Goods of $3,750. 
D) debit to Work-in-Process of $3,750. 
A) debit to Work-in-Process of $4,500. 
B) debit to Materials Inventory of $3,750. 
C) credit to Finished Goods of $3,750. 
D) debit to Work-in-Process of $3,750.

Question 11

Purchases of direct materials are recorded as a debit to the __________ account.

Accepted Answer

The answer of Purchases of direct materials are recorded as...

Question 12

A __________ service organization does not use raw material or tangible items for the customer.

Accepted Answer

The answer of A __________ service organization does not use...

Question 13

Which of the following items is a basic costing system record in a job-order costing system?

Accepted Answer

A) materials requisition form 
B) job-order cost sheet 
C) job time ticket 
D) all of the above 
A) materials requisition form 
B) job-order cost sheet 
C) job time ticket 
D) all of the above

Question 14

__________ are the source of information for posting the labor cost flows.

Accepted Answer

The answer of __________ are the source of information for...

Question 15

Tonneau Corporation had the following information available for October 2018: $\begin{array}{lr}
\text { Work in Process, October } 1 & \$ 20,000 \
\text { Materials placed into production, October } & 27,500 \
\text { Direct labor, October } & 37,500
\end{array}$
Factory overhead rate is 150 percent of direct 1 abor costs.
Job cost sheets had the following bal ances:

$\begin{array}{rr}
\mathrm{Job} Z 1 & \$ 32,500 \
\text { Job Z2 } & 55,000 \
\text { Job Z3 } & 35,000 \
\text { Job ZA } & 18,750
\end{array}$
Jobs Z3 and Z4 were not completed at the end of December.
What is the cost of goods finished during October for Tonneau Corporation?

Accepted Answer

A) $85,000 
B) $87,500 
C) $56,250 
D) $53,750 
A) $85,000 
B) $87,500 
C) $56,250 
D) $53,750

Question 16

In developing unit costs, overhead costs should be assigned using activity drivers. Which would be the likely activity driver for a production process using a lathe?

Accepted Answer

A) units produced 
B) direct labor hours 
C) machine hours 
D) direct materials cost 
A) units produced 
B) direct labor hours 
C) machine hours 
D) direct materials cost

Question 17

The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5: $\begin{array}{lr}
\text { Direct materials placed into production } & \$ 4,000 \
\text { Direct labor hours worked } & 50 \text { hours } \
\text { Direct labor rate per hour } & \$ 15 \
\text { Machine hours worked } & 100 \text { hours }
\end{array}$
Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at $80,000 for the year and the direct labor hours were estimated to be 20,000. Job XY5 consists of 50 units.
What is the materials cost per unit for Job XY5?

Accepted Answer

A) $267 
B) $80 
C) $40 
D) $4 
A) $267 
B) $80 
C) $40 
D) $4

Question 18

A normal costing system records which costs in work in process?

Accepted Answer

A) actual direct materials, actual direct labor, actual manufacturing overhead 
B) applied direct materials, applied direct labor, applied manufacturing overhead 
C) applied materials and labor and actual manufacturing overhead 
D) actual materials and labor and applied manufacturing overhead 
A) actual direct materials, actual direct labor, actual manufacturing overhead 
B) applied direct materials, applied direct labor, applied manufacturing overhead 
C) applied materials and labor and actual manufacturing overhead 
D) actual materials and labor and applied manufacturing overhead

Question 19

A job-order costing system that uses actual costs for direct materials and direct labor and estimated costs for overhead is called a(n) _____.

Accepted Answer

A) hybrid job-order costing system 
B) normal job-order costing system 
C) average job-order costing system 
D) actual job-order costing system 
A) hybrid job-order costing system 
B) normal job-order costing system 
C) average job-order costing system 
D) actual job-order costing system

Question 20

In a job-order costing system, direct labor costs assigned to a job are different than the costs assigned to work-in-process inventory.

Accepted Answer

A) True 
 B)False

An actual overhead rate can be calculated

In job-order costing, departmental overhead rates and activity-based costing affect only the application of overhead.

Which of the following activity levels has the advantage of using the same activity level year after year and, in turn, producing less fluctuation from year to year in the assignment of per-unit overhead cost?

A work-in-process inventory file is

Unit cost is a critical piece of information for a manufacturing business as well as a service company.

Manufacturing overhead consists of all

Unit cost information is needed for

A pure service organization has

Under normal costing, which of the following statements is true regarding factory overhead?

Purchases of direct materials are recorded as a debit to the __________ account.

A __________ service organization does not use raw material or tangible items for the customer.

Which of the following items is a basic costing system record in a job-order costing system?

__________ are the source of information for posting the labor cost flows.

In developing unit costs, overhead costs should be assigned using activity drivers. Which would be the likely activity driver for a production process using a lathe?

A normal costing system records which costs in work in process?

A job-order costing system that uses actual costs for direct materials and direct labor and estimated costs for overhead is called a(n) _____.

In a job-order costing system, direct labor costs assigned to a job are different than the costs assigned to work-in-process inventory.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 5: Product and Service Costing: Job-Order System

An actual overhead rate can be calculated

In job-order costing, departmental overhead rates and activity-based costing affect only the application of overhead.

Which of the following activity levels has the advantage of using the same activity level year after year and, in turn, producing less fluctuation from year to year in the assignment of per-unit overhead cost?

A work-in-process inventory file is

Unit cost is a critical piece of information for a manufacturing business as well as a service company.

Manufacturing overhead consists of all

Unit cost information is needed for

A pure service organization has

Under normal costing, which of the following statements is true regarding factory overhead?

Purchases of direct materials are recorded as a debit to the __________ account.

A __________ service organization does not use raw material or tangible items for the customer.

Which of the following items is a basic costing system record in a job-order costing system?

__________ are the source of information for posting the labor cost flows.

In developing unit costs, overhead costs should be assigned using activity drivers. Which would be the likely activity driver for a production process using a lathe?

A normal costing system records which costs in work in process?

A job-order costing system that uses actual costs for direct materials and direct labor and estimated costs for overhead is called a(n) _____.

In a job-order costing system, direct labor costs assigned to a job are different than the costs assigned to work-in-process inventory.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters