Question 1

Here are selected data for Wilson Company:   If the company allocates overhead based on direct labor cost, what is the predetermined manufacturing overhead rate?

Accepted Answer

A) 76% of direct labor cost 
B) 133% of direct labor cost 
C) 75% of direct labor cost 
D) 102% of direct labor cost 
A) 76% of direct labor cost 
B) 133% of direct labor cost 
C) 75% of direct labor cost 
D) 102% of direct labor cost

Question 2

Tina's Interior Design expects its designers will work a total of 14,000 direct labor hours during the upcoming year. Tina's estimated total indirect costs are $170,000. The indirect cost allocation rate is based on direct labor hours.
A)What is the indirect cost allocation rate?
B)What indirect costs will be allocated to client 332, if one designer works 25 hours?

Accepted Answer

The answer of Tina's Interior Design expects its designers will...

Question 3

Biltz Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. During the year, the company actually incurred manufacturing overhead costs of $582,000 and 135,000 direct labor hours were worked. The company estimated that it would incur $525,000 of manufacturing overhead during the year and that 150,000 direct labor hours would be worked. By how much was manufacturing overhead overallocated or underallocated for the year?

Accepted Answer

A) $109,500 underallocated 
B) $57,000 overallocated 
C) $57,000 underallocated 
D) $109,500 overallocated 
A) $109,500 underallocated 
B) $57,000 overallocated 
C) $57,000 underallocated 
D) $109,500 overallocated

Question 4

Zanny Moldings has the following estimated costs for the upcoming year:   The company estimates that 1,600 direct labor hours will be worked in the upcoming year, while 2,000 machine hours will be used during the year. The predetermined manufacturing overhead rate per machine hour is closest to

Accepted Answer

A) $32. 
B) $96. 
C) $14. 
D) $53. 
A) $32. 
B) $96. 
C) $14. 
D) $53.

Question 5

Federer Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year:   If Federer Company uses direct labor cost as the allocation base, what would the predetermined manufacturing overhead rate be?

Accepted Answer

A) 70% 
B) 75% 
C) 91% 
D) 85% 
A) 70% 
B) 75% 
C) 91% 
D) 85%

Question 6

Assigning manufacturing overhead costs and other indirect costs is called

Accepted Answer

A) cost driver. 
B) cost allocation. 
C) materials requisition. 
D) predetermined manufacturing overhead rate. 
A) cost driver. 
B) cost allocation. 
C) materials requisition. 
D) predetermined manufacturing overhead rate.

Question 7

Federer Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year:   If Federer Company uses direct labor hours as the allocation base, what would the allocated manufacturing overhead be for the year?

Accepted Answer

A) $425,000 
B) $350,000 
C) $394,400 
D) $324,800 
A) $425,000 
B) $350,000 
C) $394,400 
D) $324,800

Question 8

Job 140 requires $12,000 of direct materials, $6,700 of direct labor, 550 direct labor hours, and 270 machine hours. It also requires 9 hours of inspection at $40 per hour. Manufacturing overhead is computed at $28 per direct labor hour used and $42 per machine hour used. The total dollars of conversion costs are

Accepted Answer

A) $15,400. 
B) $26,740. 
C) $33,440. 
D) $45,440. 
A) $15,400. 
B) $26,740. 
C) $33,440. 
D) $45,440.

Question 9

A production schedule indicates the quantity and types of inventory that are scheduled to be manufactured during the period.

Accepted Answer

A) True 
 B)False

Question 10

Sykes Company has sales revenue of $585,000. Cost of goods sold before adjustment is $335,000. The company's actual manufacturing overhead is $91,000, while allocated manufacturing overhead is $104,400. What is the actual gross profit?

Accepted Answer

A) $159,000 
B) $236,600 
C) $250,000 
D) $263,400 
A) $159,000 
B) $236,600 
C) $250,000 
D) $263,400

Question 11

Job costing is often used by professional service providers, such as law firms.

Accepted Answer

A) True 
 B)False

Question 12

To follow is selected financial data from Turtle Bay Manufacturing for the most recent year.   What is the actual manufacturing overhead?

Accepted Answer

A) $65,100 
B) $54,900 
C) $ 5,100 
D) $60,000 
A) $65,100 
B) $54,900 
C) $ 5,100 
D) $60,000

Question 13

Ryan's Paints allocates overhead based on machine hours. Selected data for the most recent year follow.   The estimates were made as of the beginning of the year, while the actual results were for the entire year.
The manufacturing overhead for the year would have been

Accepted Answer

A) $10,000 overallocated. 
B) $10,000 underallocated. 
C) $40,000 overallocated. 
D) $40,000 underallocated. 
A) $10,000 overallocated. 
B) $10,000 underallocated. 
C) $40,000 overallocated. 
D) $40,000 underallocated.

Question 14

Maple Company uses a job costing system. Maple Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31.   Allocated manufacturing overhead costs for August amount to $50,000.
What is the amount of work in process inventory (before any adjustment for overallocated or underallocated manufacturing overhead)on August 31?

Accepted Answer

A) $57,500 
B) $167,000 
C) $35,500 
D) $138,500 
A) $57,500 
B) $167,000 
C) $35,500 
D) $138,500

Question 15

The key to allocating indirect manufacturing costs to jobs is to identify an appropriate allocation base.

Accepted Answer

A) True 
 B)False

Question 16

The total cost of a job shown on the job cost record is the sum of the direct materials and direct labor traced to the job divided by the manufacturing overhead allocated to the job.

Accepted Answer

A) True 
 B)False

Question 17

Solid Oak Bureau Company uses job costing. Solid Oak Bureau Company has two departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department. The following additional information is available:   Actual data for completed Job No. 650 is as follows:
  What is the predetermined manufacturing overhead rate for the Finishing Department?

Accepted Answer

A) $6.50 per direct labor hour 
B) $52.00 per direct labor hour 
C) $10.00 per direct labor hour 
D) $10.40 per direct labor hour 
A) $6.50 per direct labor hour 
B) $52.00 per direct labor hour 
C) $10.00 per direct labor hour 
D) $10.40 per direct labor hour

Question 18

A manufacturer of luxury yachts would use which type of costing system?

Accepted Answer

A) Process costing 
B) Job costing 
C) Either job or process 
D) Both job and process 
A) Process costing 
B) Job costing 
C) Either job or process 
D) Both job and process

Question 19

Showboat Corporation had actual manufacturing overhead costs for the most recent year of $29,500. Manufacturing overhead is allocated using a predetermined manufacturing overhead rate of $1.50 per direct labor hour. Direct labor cost is $19 per hour. At the end of the year, Cabaret Corporation found it had overallocated manufacturing overhead by $1,250. How much manufacturing overhead was allocated in total during the year?

Accepted Answer

A) $28,250 
B) $29,500 
C) $30,750 
D) $1,250 
A) $28,250 
B) $29,500 
C) $30,750 
D) $1,250

Question 20

To record the costs of indirect labor, which of the following would be debited?

Accepted Answer

A) Work in process inventory 
B) Manufacturing overhead 
C) Finished goods inventory 
D) Wages payable 
A) Work in process inventory 
B) Manufacturing overhead 
C) Finished goods inventory 
D) Wages payable

Here are selected data for Wilson Company: If the company allocates overhead based on direct labor cost, what is the predetermined manufacturing overhead rate?

Zanny Moldings has the following estimated costs for the upcoming year: The company estimates that 1,600 direct labor hours will be worked in the upcoming year, while 2,000 machine hours will be used during the year. The predetermined manufacturing overhead rate per machine hour is closest to

Assigning manufacturing overhead costs and other indirect costs is called

A production schedule indicates the quantity and types of inventory that are scheduled to be manufactured during the period.

Sykes Company has sales revenue of $585,000. Cost of goods sold before adjustment is $335,000. The company's actual manufacturing overhead is $91,000, while allocated manufacturing overhead is $104,400. What is the actual gross profit?

Job costing is often used by professional service providers, such as law firms.

To follow is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the actual manufacturing overhead?

Ryan's Paints allocates overhead based on machine hours. Selected data for the most recent year follow. The estimates were made as of the beginning of the year, while the actual results were for the entire year. The manufacturing overhead for the year would have been

The key to allocating indirect manufacturing costs to jobs is to identify an appropriate allocation base.

The total cost of a job shown on the job cost record is the sum of the direct materials and direct labor traced to the job divided by the manufacturing overhead allocated to the job.

A manufacturer of luxury yachts would use which type of costing system?

To record the costs of indirect labor, which of the following would be debited?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 3: Job Costing

Here are selected data for Wilson Company: If the company allocates overhead based on direct labor cost, what is the predetermined manufacturing overhead rate?

Zanny Moldings has the following estimated costs for the upcoming year: The company estimates that 1,600 direct labor hours will be worked in the upcoming year, while 2,000 machine hours will be used during the year. The predetermined manufacturing overhead rate per machine hour is closest to

Assigning manufacturing overhead costs and other indirect costs is called

A production schedule indicates the quantity and types of inventory that are scheduled to be manufactured during the period.

Sykes Company has sales revenue of $585,000. Cost of goods sold before adjustment is $335,000. The company's actual manufacturing overhead is $91,000, while allocated manufacturing overhead is $104,400. What is the actual gross profit?

Job costing is often used by professional service providers, such as law firms.

To follow is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the actual manufacturing overhead?

Ryan's Paints allocates overhead based on machine hours. Selected data for the most recent year follow. The estimates were made as of the beginning of the year, while the actual results were for the entire year. The manufacturing overhead for the year would have been

The key to allocating indirect manufacturing costs to jobs is to identify an appropriate allocation base.

The total cost of a job shown on the job cost record is the sum of the direct materials and direct labor traced to the job divided by the manufacturing overhead allocated to the job.

A manufacturer of luxury yachts would use which type of costing system?

To record the costs of indirect labor, which of the following would be debited?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters