Question 1

Manufacturers follow four steps to implement a manufacturing overhead allocation system. Which step is not performed before the year begins?

Accepted Answer

A) Allocate some manufacturing overhead to each individual job. 
B) Select an allocation base and estimate the total amount that will be used during the year. 
C) Estimate total manufacturing overhead costs for the coming year. 
D) Calculate a predetermined manufacturing overhead rate. 
A) Allocate some manufacturing overhead to each individual job. 
B) Select an allocation base and estimate the total amount that will be used during the year. 
C) Estimate total manufacturing overhead costs for the coming year. 
D) Calculate a predetermined manufacturing overhead rate.

Question 2

A company has overallocated manufacturing overhead by $1,500. The entry to close manufacturing overhead account would be to

Accepted Answer

A) debit manufacturing overhead and credit cost of goods sold for $1,500. 
B) debit manufacturing overhead and credit work in process for $1,500. 
C) debit cost of goods sold and credit manufacturing overhead for $1,500. 
D) debit cost of goods sold and credit finished goods inventory for $15,000. 
A) debit manufacturing overhead and credit cost of goods sold for $1,500. 
B) debit manufacturing overhead and credit work in process for $1,500. 
C) debit cost of goods sold and credit manufacturing overhead for $1,500. 
D) debit cost of goods sold and credit finished goods inventory for $15,000.

Question 3

Omega Technology's work in process inventory on June 1 has a balance of $27,200 representing Job No. 36. During June, $68,900 of direct materials were requisitioned for Job No. 36 and $5,500 of direct labor cost was incurred on Job No. 36. Manufacturing overhead is allocated at a rate of $16.00 per direct labor hour. Actual manufacturing overhead costs incurred in June amounted to $15,000. There were 825 actual direct labor hours worked in June. No new jobs were started during June. Job No. 36 is completed on June 28.
a)Determine the total cost assigned to Job No. 36.
b)Is manufacturing overhead overallocated or underallocated for the month of June? By how much?

Accepted Answer

The answer of Omega Technology's work in process inventory on...

Question 4

To record depreciation on the factory equipment, the journal entry would include a

Accepted Answer

A) debit to work in process inventory. 
B) debit to manufacturing overhead. 
C) debit to depreciation expense. 
D) debit to accumulated depreciation. 
A) debit to work in process inventory. 
B) debit to manufacturing overhead. 
C) debit to depreciation expense. 
D) debit to accumulated depreciation.

Question 5

Allocating manufacturing overhead costs is done

Accepted Answer

A) during the period. 
B) before the period starts. 
C) at the end of the period. 
D) never. 
A) during the period. 
B) before the period starts. 
C) at the end of the period. 
D) never.

Question 6

A(n)________ is an estimated manufacturing overhead rate computed before the year begins.

Accepted Answer

A) cost allocation 
B) cost driver 
C) predetermined manufacturing overhead rate 
D) actual manufacturing overhead rate 
A) cost allocation 
B) cost driver 
C) predetermined manufacturing overhead rate 
D) actual manufacturing overhead rate

Question 7

Ohio Steel uses a job costing system. Ohio Steel uses estimated direct labor hours of 100,000 and estimated manufacturing overhead costs of $320,000 in establishing its predetermined manufacturing overhead rate. Actual results for the year showed:   The number of direct labor hours worked during the period was

Accepted Answer

A) 109,375. 
B) 93,257. 
C) 100,000. 
D) 102,000. 
A) 109,375. 
B) 93,257. 
C) 100,000. 
D) 102,000.

Question 8

The journal entry needed to record the receipt of a bill from the company's marketing agency would include a

Accepted Answer

A) debit to manufacturing overhead. 
B) debit to work in process inventory. 
C) debit to marketing expenses. 
D) credit to work in process inventory. 
A) debit to manufacturing overhead. 
B) debit to work in process inventory. 
C) debit to marketing expenses. 
D) credit to work in process inventory.

Question 9

The cost of wages paid to assembly-line workers should be treated as a manufacturing overhead cost.

Accepted Answer

A) True 
 B)False

Question 10

The ________ is the hourly price charged to clients for professional labor.

Accepted Answer

A) salary rate 
B) billing rate 
C) wage rate 
D) job rate 
A) salary rate 
B) billing rate 
C) wage rate 
D) job rate

Question 11

________ is the system for assigning costs to unique cost objects.

Accepted Answer

A) Time costing 
B) Process costing 
C) Job costing 
D) Service costing 
A) Time costing 
B) Process costing 
C) Job costing 
D) Service costing

Question 12

A purchase order is used to order needed materials from suppliers.

Accepted Answer

A) True 
 B)False

Question 13

The following information was gathered for the Wesley Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours.   What is the company's predetermined manufacturing overhead rate?

Accepted Answer

A) $16.47 per direct labor hour 
B) $19.31 per direct labor hour 
C) $24.63 per direct labor hour 
D) $21.00 per direct labor hour 
A) $16.47 per direct labor hour 
B) $19.31 per direct labor hour 
C) $24.63 per direct labor hour 
D) $21.00 per direct labor hour

Question 14

Under which of the following situations is finished goods inventory debited and work in process inventory credited?

Accepted Answer

A) Transfer of goods to the finished goods storeroom 
B) Purchase of goods on account 
C) Transfer goods out of the factory 
D) Transfer of material to work in process inventory 
A) Transfer of goods to the finished goods storeroom 
B) Purchase of goods on account 
C) Transfer goods out of the factory 
D) Transfer of material to work in process inventory

Question 15

Allocating manufacturing overhead to jobs simply means "splitting up" the total manufacturing overhead costs among the jobs produced during the year.

Accepted Answer

A) True 
 B)False

Question 16

The two basic types of costing systems are

Accepted Answer

A) product costing and materials inventory costing. 
B) periodic costing and perpetual costing. 
C) job costing and process costing. 
D) periodic costing and process costing. 
A) product costing and materials inventory costing. 
B) periodic costing and perpetual costing. 
C) job costing and process costing. 
D) periodic costing and process costing.

Question 17

An equal amount of manufacturing overhead should be allocated to each job.

Accepted Answer

A) True 
 B)False

Question 18

Here are selected data for Stehli Company:   If the company allocates manufacturing overhead based on direct labor cost, what are the allocated manufacturing overhead costs?

Accepted Answer

A) $410,256 
B) $249,600 
C) $227,400 
D) $253,500 
A) $410,256 
B) $249,600 
C) $227,400 
D) $253,500

Question 19

When job costing is used at a service company, direct costs of serving the client are traced to the job, whereas the indirect costs of serving the client are allocated to the job.

Accepted Answer

A) True 
 B)False

Question 20

The amount of overallocation or underallocation is found by taking the difference between the amount of overhead allocated during the year and the amount of overhead incurred during the year.

Accepted Answer

A) True 
 B)False

Manufacturers follow four steps to implement a manufacturing overhead allocation system. Which step is not performed before the year begins?

A company has overallocated manufacturing overhead by $1,500. The entry to close manufacturing overhead account would be to

To record depreciation on the factory equipment, the journal entry would include a

Allocating manufacturing overhead costs is done

A(n)________ is an estimated manufacturing overhead rate computed before the year begins.

The journal entry needed to record the receipt of a bill from the company's marketing agency would include a

The cost of wages paid to assembly-line workers should be treated as a manufacturing overhead cost.

The ________ is the hourly price charged to clients for professional labor.

________ is the system for assigning costs to unique cost objects.

A purchase order is used to order needed materials from suppliers.

The following information was gathered for the Wesley Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours. What is the company's predetermined manufacturing overhead rate?

Under which of the following situations is finished goods inventory debited and work in process inventory credited?

Allocating manufacturing overhead to jobs simply means "splitting up" the total manufacturing overhead costs among the jobs produced during the year.

The two basic types of costing systems are

An equal amount of manufacturing overhead should be allocated to each job.

Here are selected data for Stehli Company: If the company allocates manufacturing overhead based on direct labor cost, what are the allocated manufacturing overhead costs?

When job costing is used at a service company, direct costs of serving the client are traced to the job, whereas the indirect costs of serving the client are allocated to the job.

The amount of overallocation or underallocation is found by taking the difference between the amount of overhead allocated during the year and the amount of overhead incurred during the year.

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

Manufacturers follow four steps to implement a manufacturing overhead allocation system. Which step is not performed before the year begins?

A company has overallocated manufacturing overhead by $1,500. The entry to close manufacturing overhead account would be to

To record depreciation on the factory equipment, the journal entry would include a

Allocating manufacturing overhead costs is done

A(n)________ is an estimated manufacturing overhead rate computed before the year begins.

The journal entry needed to record the receipt of a bill from the company's marketing agency would include a

The cost of wages paid to assembly-line workers should be treated as a manufacturing overhead cost.

The ________ is the hourly price charged to clients for professional labor.

________ is the system for assigning costs to unique cost objects.

A purchase order is used to order needed materials from suppliers.

The following information was gathered for the Wesley Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours. What is the company's predetermined manufacturing overhead rate?

Under which of the following situations is finished goods inventory debited and work in process inventory credited?

Allocating manufacturing overhead to jobs simply means "splitting up" the total manufacturing overhead costs among the jobs produced during the year.

The two basic types of costing systems are

An equal amount of manufacturing overhead should be allocated to each job.

Here are selected data for Stehli Company: If the company allocates manufacturing overhead based on direct labor cost, what are the allocated manufacturing overhead costs?

When job costing is used at a service company, direct costs of serving the client are traced to the job, whereas the indirect costs of serving the client are allocated to the job.

The amount of overallocation or underallocation is found by taking the difference between the amount of overhead allocated during the year and the amount of overhead incurred during the year.

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