Question 1

The difference between a standard and an actual quantity,price,or rate is a(n)__________.

Accepted Answer

The answer of The difference between a standard and an...

Question 2

Romano Company
The following information pertains to Romano Company for September:
                   Direct Material       Direct Labor       Overhead               Job #323        $3,200       $4,500       ?               Job #325       ?        5,000       ?               Job #401        5,670       ?       $5,550      
Romano Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401.The total cost of Jobs #323 and #325 is identical.
Refer to Romano Company.What amount of overhead is applied to Job #323?

Accepted Answer

A) $4,800 
B) $5,550 
C) $6,300 
D) $7,500 
A) $4,800 
B) $5,550 
C) $6,300 
D) $7,500

Question 3

If a normal loss is anticipated on a specific job,the overhead application rate should include an amount for the cost of defective units less disposal value.

Accepted Answer

A) True 
 B)False

Question 4

The journal entry to record the incurrence and payment of overhead costs for factory insurance requires a debit to

Accepted Answer

A) Cash and a credit to Manufacturing Overhead. 
B) Manufacturing Overhead and a credit to Accounts Payable. 
C) Manufacturing Overhead and a credit to Cash. 
D) Work in Process Inventory and a credit to Cash. 
A) Cash and a credit to Manufacturing Overhead. 
B) Manufacturing Overhead and a credit to Accounts Payable. 
C) Manufacturing Overhead and a credit to Cash. 
D) Work in Process Inventory and a credit to Cash.

Question 5

Charleston Company
Charleston Company has two departments (Processing and Packaging)and uses a job-order costing system.Charleston applies overhead in Processing based on machine hours and on direct labor cost in Packaging.The following information is available for July:
$\begin{array}{llc}
\text { Machine hours } & \frac{\text { Processing }}{2,500} & \frac{\text { Packagin }}{1,000} \
\text { Directlabor cost } & \$ 44,500 & \$ 23,000 \
\text { Applied overhead } & \$ 55,000 & \$ 51,750
\end{array}$

Refer to Charleston Company.What is the overhead application rate per machine hour for Processing?

Accepted Answer

A) $ 0.81 
B) $ 1.24 
C) $17.80 
D) $22.00 
A) $ 0.81 
B) $ 1.24 
C) $17.80 
D) $22.00

Question 6

In a normal job-order costing system,actual factory overhead is applied at the end of the period.

Accepted Answer

A) True 
 B)False

Question 7

Chapman Company
Chapman Company uses a job-order costing system.At the beginning of March,the company had two jobs in process with the following costs:
                   Direct Material        Direct Labor       Overhead               Job #456       $3,400       $510       $255               Job #461        1,100        289       ?      
Chapman pays its workers $8.50 per hour and applies overhead on a direct labor hour basis.
Refer to Chapman Company.During March,Chapman' employees worked on Job #649.At the end of the month,$714 of overhead had been applied to this job.Total Work in Process at the end of the month was $6,800 and all other jobs had a total cost of $3,981.What amount of direct material is included in Job #649?

Accepted Answer

A) $ 677.00 
B) $1,391.00 
C) $2,142.00 
D) $4,658.00 
A) $ 677.00 
B) $1,391.00 
C) $2,142.00 
D) $4,658.00

Question 8

A job-order costing system is likely to provide better
(1) inventory valuations for financial statements.
(2) contral over inventory.
(3) information about ability to accept additional production worl

(1)    (3)    (4)

Accepted Answer

A) yes no no 
B) no yes yes 
C) no no no 
D) yes yes yes 
A) yes no no 
B) no yes yes 
C) no no no 
D) yes yes yes

Question 9

A company that manufactures custom bridal gowns will use a job-order costing system to track production costs.

Accepted Answer

A) True 
 B)False

Question 10

Davis Company
Davis Company uses a job-order costing system.Assume that Job #504 is the only one in process.The following information is available:
             Budgeted direct labor hours        65,000       Budgeted machine hours        9,000               Budgeted overhead       $350,000       Direct material       $110,500              Direct labor cost         $70,000                    
Refer to Davis Company.What is the total cost of Job #504 assuming that overhead is applied at the rate of 135% of direct labor cost (rounded to the nearest whole dollar)?

Accepted Answer

A) $192,650 
B) $268,250 
C) $275,000 
D) $329,675 
A) $192,650 
B) $268,250 
C) $275,000 
D) $329,675

Question 11

Which of the following organizations would be most likely to use a job-order costing system?

Accepted Answer

A) the loan department of a bank 
B) the check clearing department of a bank 
C) a manufacturer of processed cheese food 
D) a manufacturer of video cassette tapes 
A) the loan department of a bank 
B) the check clearing department of a bank 
C) a manufacturer of processed cheese food 
D) a manufacturer of video cassette tapes

Question 12

Debits to Cost of Goods Sold typically represent the

Accepted Answer

A) transfer of completed items to Finished Goods Inventory. 
B) costs of items sold. 
C) selling price of items sold. 
D) the cost of goods manufactureD. 
A) transfer of completed items to Finished Goods Inventory. 
B) costs of items sold. 
C) selling price of items sold. 
D) the cost of goods manufactureD.

Question 13

Chapman Company
Chapman Company uses a job-order costing system.At the beginning of March,the company had two jobs in process with the following costs:
                   Direct Material        Direct Labor       Overhead               Job #456       $3,400       $510       $255               Job #461        1,100        289       ?      
Chapman pays its workers $8.50 per hour and applies overhead on a direct labor hour basis.
Refer to Chapman Company.How much overhead was included in the cost of Job #461 at the beginning of March?

Accepted Answer

A) $ 144.50 
B) $ 153.00 
C) $2,200.00 
D) $2,456.50 
A) $ 144.50 
B) $ 153.00 
C) $2,200.00 
D) $2,456.50

Question 14

Products at Conroy Manufacturing are sent through two production departments: Fabricating and Finishing.Overhead is applied to products in the Fabricating Department based on 150 percent of direct labor cost and $18 per machine hour in Finishing.The following information is available about Job #297:
                   Fabricating        Finishing               Direct material       $1,590       $580               Direct labor cost       ?      48               Direct labor hours       22       6               Machine hours       5       15               Overhead applied       429       ?      
What is the total cost of Job #297?

Accepted Answer

A) $2,647 
B) $3,005 
C) $3,093 
D) $3,203 
A) $2,647 
B) $3,005 
C) $3,093 
D) $3,203

Question 15

Standards can be computed for materials,labor,and overhead.

Accepted Answer

A) True 
 B)False

Question 16

Moore Company.
Moore Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #6,#9,and #13.
Raw matenial used                                                            $120,000
Direct lab or per hour                                                        $\$ 8.50$
Overhead applied bared on direct lab or cost                     $120 \%$
Direct material was requisitioned as follows for each job respectively: 30 percent,25 percent,and 25 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,500;3,100;and 4,200;respectively.Indirect labor is $33,000.Other actual overhead costs totaled $36,000.
Refer to Moore Company.What is the total amount of actual overhead?

Accepted Answer

A) $36,000 
B) $69,000 
C) $93,000 
D) $99,960 
A) $36,000 
B) $69,000 
C) $93,000 
D) $99,960

Question 17

Moore Company.
Moore Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #6,#9,and #13.
Raw matenial used                                                            $120,000
Direct lab or per hour                                                        $\$ 8.50$
Overhead applied bared on direct lab or cost                     $120 \%$

Direct material was requisitioned as follows for each job respectively: 30 percent,25 percent,and 25 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,500;3,100;and 4,200;respectively.Indirect labor is $33,000.Other actual overhead costs totaled $36,000.
Refer to Moore Company.If Job #13 is completed and transferred,what is the balance in Work in Process Inventory at the end of the period if overhead is applied at the end of the period?

Accepted Answer

A) $ 96,700 
B) $ 99,020 
C) $139,540 
D) $170,720 
A) $ 96,700 
B) $ 99,020 
C) $139,540 
D) $170,720

Question 18

Romano Company
The following information pertains to Romano Company for September:
                   Direct Material       Direct Labor       Overhead               Job #323        $3,200       $4,500       ?               Job #325       ?        5,000       ?               Job #401        5,670       ?       $5,550      
Romano Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401.The total cost of Jobs #323 and #325 is identical.
Refer to Romano Company Assume that Jobs #323 and #401 are incomplete at the end of September.What is the balance in Work in Process Inventory at that time?

Accepted Answer

A) $18,920 
B) $22,620 
C) $28,920 
D) $30,120 
A) $18,920 
B) $22,620 
C) $28,920 
D) $30,120

Question 19

Sloane Products has no Work in Process or Finished Goods inventories at the close of business on December 31 of the current year.The balances of Sloane Products' accounts as of December 31 are as follows:
$\begin{array}{ll}
\text { Cost of goods sold-unadjusted } & \$ 2,040,000 \
\text { Selling \& administrative expenses } & 950,000 \
\text { Sales } & 4,000,000 \
\text { Manufacturing overhead control } &800,000 \
\text { Manufacturing overhead applied } & 754,000
\end{array}$

Pretax income for the current year is:

Accepted Answer

A) $484,000 
B) $530,000 
C) $576,000 
D) $680,000 
A) $484,000 
B) $530,000 
C) $576,000 
D) $680,000

Question 20

Which of the following would fall within the range of tolerance for a production cycle?
$\text {\underline{ Abnormal loss} }$                    $\text {\underline{ Normal loss} }$

Accepted Answer

A) yes yes 
B) yes no 
C) no no 
D) no yes 
A) yes yes 
B) yes no 
C) no no 
D) no yes

The difference between a standard and an actual quantity,price,or rate is a(n)__________.

If a normal loss is anticipated on a specific job,the overhead application rate should include an amount for the cost of defective units less disposal value.

The journal entry to record the incurrence and payment of overhead costs for factory insurance requires a debit to

In a normal job-order costing system,actual factory overhead is applied at the end of the period.

A job-order costing system is likely to provide better (1) inventory valuations for financial statements. (2) contral over inventory. (3) information about ability to accept additional production worl (1) (3) (4)

A company that manufactures custom bridal gowns will use a job-order costing system to track production costs.

Which of the following organizations would be most likely to use a job-order costing system?

Debits to Cost of Goods Sold typically represent the

Standards can be computed for materials,labor,and overhead.

Which of the following would fall within the range of tolerance for a production cycle? $\text {\underline{ Abnormal loss} }$ $\text {\underline{ Normal loss} }$

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Budgeted direct labor hours	65,000	Budgeted machine hours	9,000
Budgeted overhead	$350,000	Direct material	$110,500
Direct labor cost	$70,000

	Fabricating	Finishing
Direct material	$1,590	$580
Direct labor cost	?	48
Direct labor hours	22	6
Machine hours	5	15
Overhead applied	429	?

Exam 5: Job Order Costing

The difference between a standard and an actual quantity,price,or rate is a(n)__________.

If a normal loss is anticipated on a specific job,the overhead application rate should include an amount for the cost of defective units less disposal value.

The journal entry to record the incurrence and payment of overhead costs for factory insurance requires a debit to

In a normal job-order costing system,actual factory overhead is applied at the end of the period.

A job-order costing system is likely to provide better (1) inventory valuations for financial statements. (2) contral over inventory. (3) information about ability to accept additional production worl (1) (3) (4)

A company that manufactures custom bridal gowns will use a job-order costing system to track production costs.

Which of the following organizations would be most likely to use a job-order costing system?

Debits to Cost of Goods Sold typically represent the

Standards can be computed for materials,labor,and overhead.

Which of the following would fall within the range of tolerance for a production cycle? Abnormal loss‾ \text {\underline{ Abnormal loss} } Abnormal loss​ Normal loss‾ \text {\underline{ Normal loss} } Normal loss​

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Which of the following would fall within the range of tolerance for a production cycle? $\text {\underline{ Abnormal loss} }$ $\text {\underline{ Normal loss} }$