Question 1

Which of the following types of costs is not easily tracked or traced to a specific job or file in job-order costing?

Accepted Answer

A)  Fabric used in upholstered furniture 
B)  Medication given to a hospital patient 
C)  Cleaning supplies used in the factory 
D)  Fringe benefits given to assembly-line worker 
A)  Fabric used in upholstered furniture 
B)  Medication given to a hospital patient 
C)  Cleaning supplies used in the factory 
D)  Fringe benefits given to assembly-line worker C

Question 2

Which of the following types of costs would be classified as a product cost in a job order costing system? Check those that apply.
$$\begin{array} { l l l } 
\text { indirect materials } &\underline{\quad\quad\quad\quad}& \text { direct materials }&\underline{\quad\quad\quad\quad} \
\text { administrative coerhead } &\underline{\quad\quad\quad\quad}& \text { manufacturing overhead }&\underline{\quad\quad\quad\quad} \
\text { direct labour } &\underline{\quad\quad\quad\quad}& \text { advertising costs }&\underline{\quad\quad\quad\quad} \
\text { indirect labour } &\underline{\quad\quad\quad\quad}& \text { sales commissions }&\underline{\quad\quad\quad\quad}
\end{array}$$

Accepted Answer

$$\begin{array} { l l l } 
\text { indirect materials } &\underline{\quad\quad?\quad\quad}& \text { direct materials }&\underline{\quad\quad?\quad\quad} \
\text { administrative coerhead } &\underline{\quad\quad\quad\quad}& \text { manufacturing overhead }&\underline{\quad\quad?\quad\quad} \
\text { direct labour } &\underline{\quad\quad?\quad\quad}& \text { advertising costs }&\underline{\quad\quad\quad\quad} \
\text { indirect labour } &\underline{\quad\quad?\quad\quad}& \text { sales commissions }&\underline{\quad\quad\quad\quad}
\end{array}$$

Question 3

Collins Inc.applies overhead to jobs using direct labour hours.The following data are available for the year:
 $\begin{array}{lr}
  \text { Estimated direct labour hours } &1000000\
 \text {Actual direct labour hours  } &900000\
 \text {Overhead applied  } &\$3600000\
 \text {  Actual overhead } &\$2950000\
\end{array}$
 
What predetermined overhead rate did Collins use,and what is the cost allocated to Job ##123 that used 1000 direct labour hours?

Accepted Answer

$4.00 per direct labour hour calculated as follows:
Applied overhead = Actual cost driver units * predetermined overhead rate
$3 600 000 = 900 000 *predetermined overhead rate
predetermined rate = $4.00
Costs allocated to Job #123 = $4 x 1000 actual direct labour hours = $4000.

Question 4

Which of the following statements is correct?

Accepted Answer

A)  Overhead consists of a limited variety of costs that should have the same cost driver. 
B)  Overhead consists of a wide variety of costs that should have the same cost driver. 
C)  Overhead consists of a variety of costs that may potentially have different cost drivers. 
D)  Overhead consists of a limited variety of costs that must each have a unique cost driver. 
A)  Overhead consists of a limited variety of costs that should have the same cost driver. 
B)  Overhead consists of a wide variety of costs that should have the same cost driver. 
C)  Overhead consists of a variety of costs that may potentially have different cost drivers. 
D)  Overhead consists of a limited variety of costs that must each have a unique cost driver.

Question 5

Triangle Catering assigns overhead to specific jobs based on direct labour hours.At the beginning of the current year,estimated overhead costs were $500 000 and estimated direct labour hours were 40 000.By the end of the year,actual overhead costs were calculated to be $525 000 and actual direct labour hours were 45 000.
Required:
 A. Calculate the predetermined overhead rate.
B. How much overhead would be applied to a particular catering job that required 15 direct labour hours?
C. How much total overhead was applied during the year?
D. By how much was overhead over- or underapplied for the year? Be sure to indicate whether it was over- or underapplied.

Accepted Answer

A. Predetermined rate @#LAT-DLM& per direct labour

Question 6

The formula for calculating the predetermined overhead rate is:

Accepted Answer

A)  Actual overhead for the cost pool / Estimated units of the cost driver 
B)  Estimated overhead for the cost pool / Actual units of the cost driver 
C)  Actual overhead for the cost pool / Actual units of the cost driver 
D)  Estimated overhead for the cost pool / Estimated units of the cost driver 
A)  Actual overhead for the cost pool / Estimated units of the cost driver 
B)  Estimated overhead for the cost pool / Actual units of the cost driver 
C)  Actual overhead for the cost pool / Actual units of the cost driver 
D)  Estimated overhead for the cost pool / Estimated units of the cost driver

Question 7

Rolling Hills Construction
Rolling Hills Construction Co. assigns overhead to specific jobs based on direct labour cost (dollars). The following information is available for the month of June:
$$\begin{array} { l l } 
\text { Estimated direct labour hours } & 2000 \text { hours } \
\text { Estimated direct labour cost per hour } & \$ 12 / \text { hour } \
\text { Estimated overhead costs } & \$ 3000 \
\text { Actual direct labour hours } & 2300 \text { hours } \
\text { Actual direct labour cost per hour } & \$ 13 \text { hour } \
\text { Actual overhead costs } & \$ 3300
\end{array}$$
-The predetermined overhead rate for the month of June is:

Accepted Answer

A)  $ 0.125 per direct labour dollar 
B)  $12.50 per direct labour dollar 
C)  $ 1.50 per direct labour dollar 
D)  $ 8.00 per direct labour dollar 
A)  $ 0.125 per direct labour dollar 
B)  $12.50 per direct labour dollar 
C)  $ 1.50 per direct labour dollar 
D)  $ 8.00 per direct labour dollar

Question 8

Which of the following would not be included on a job cost report?

Accepted Answer

A)  Marketing costs 
B)  Direct labour costs 
C)  Manufacturing overhead costs 
D)  Direct materials cost 
A)  Marketing costs 
B)  Direct labour costs 
C)  Manufacturing overhead costs 
D)  Direct materials cost

Question 9

What is the formula for calculating the predetermined overhead rate when determining job costs? How is the rate used in job costing?

Accepted Answer

The formula for calculating the predeter

Question 10

Benjamin Products uses job order costing and assigns overhead to specific jobs using direct labour hours.During the month of June,a total of 1800 direct labour hours at a cost of $14 per hour were incurred for all jobs.Actual overhead costs for the month totalled $4500.If a specific job required 32 direct labour hours of work,how much overhead should be applied to that job?

Accepted Answer

A)  $179.20 
B)  $ 12.80 
C)  $ 80.00 
D)  $448.00 
A)  $179.20 
B)  $ 12.80 
C)  $ 80.00 
D)  $448.00

Question 11

Refer to the James Ingram information below.
James Ingram assigns overhead to jobs based on direct labour hours. At the beginning of the current year, estimated overhead costs were $300 000 and estimated direct labour hours were 50 000, while estimated machine hours were 60 000. During the year, 500 direct labour hours and 400 machine hours were used on Job #99. By the end of the year, actual overhead costs were calculated to be $218 000. Actual direct labour hours was 39 000 while actual machine hours was 48 000.
-How much overhead was applied to Job #99 during the year if the company uses machine hours as its overhead driver?

Accepted Answer

A)  $3000 
B)  $2000 
C)  $2500 
D)  $3500 
A)  $3000 
B)  $2000 
C)  $2500 
D)  $3500

Question 12

Maria's Custom Tailoring is very labour intensive.Therefore,Maria has decided to use direct labour hours as the cost driver for assigning overhead costs to specific jobs.During the month of February,the company incurred overhead costs of $3000.Total direct labour hours during the month totalled 600.Out of a total of 30 different jobs worked on during the month,Job #100 required 6 direct labour hours to complete and Job #200 required 10 direct labour hours.The total amount of overhead allocated to these two jobs is:

Accepted Answer

A)  $ 80.00 
B)  $187.50 
C)  $ 37.50 
D)  $ 16.00 
A)  $ 80.00 
B)  $187.50 
C)  $ 37.50 
D)  $ 16.00

Question 13

Which of the following costs is the most likely to not be allocated to a product in a job costing environment?

Accepted Answer

A)  Indirect materials 
B)  Factory maintenance 
C)  Factory utilities 
D)  Direct labour 
A)  Indirect materials 
B)  Factory maintenance 
C)  Factory utilities 
D)  Direct labour

Question 14

For each of the following organisations,indicate which types might be best suited to job costing.
$\begin{array}{ll}
\text { Hospital } & \text { Beverage producer } \
\text { Construction company } & \text { Law firm } \
\text { Clothing manufacturer } & \text { Drug manufacturer } \
\text { Oil refinery } & \text { Paint manufacturer }
\end{array}$

Accepted Answer

Hospital
C

Question 15

Which of the following types of costs would be specifically tracked or traced and assigned to a specific job in a job order costing system?

Accepted Answer

A)  Indirect labour 
B)  Direct labour 
C)  Indirect materials 
D)  Supervisor salary 
A)  Indirect labour 
B)  Direct labour 
C)  Indirect materials 
D)  Supervisor salary

Question 16

Griffin Manufacturing uses job order costing to measure and track the costs incurred for specific jobs.While most of the jobs do require some machine time,Griffin has determined that direct labour cost drives its manufacturing overhead costs.During the month of August,the following data were available for Job #45:
$$\begin{array} { l l } 
\text { Direct labour } & \text { 200 hours at } \$15 \text { per hour } \
\text { Direct materials } & 90 \text { gallons at } \$ 6 \text { per gallon } \
\text { Machine hours used } & 100 \text { hours }
\end{array}$$
If total overhead costs during the month totalled $4000 when a total of $20 000 in direct labour costs were incurred,what will be the total manufacturing cost of Job #45?

Accepted Answer

A)  $4140 
B)  $3580 
C)  $7540 
D)  $3540 
A)  $4140 
B)  $3580 
C)  $7540 
D)  $3540

Question 17

Sherrell Inc.applies overhead to jobs using direct labour hours.The following data are available for the year:
$\begin{array}{lr}
\text { Estimated direct labour hours } & 190000 \
\text { Actual direct labour hours } & 130000 \
\text { Actual overhead } & \$ 600000
\end{array}$
 
At the end of the year,it was determined that overhead was over-applied by $50 000.
Required: A. What was the total applied overhead for the year?
B. What was the predetermined overhead rate?

Accepted Answer

A. Applied overhead must have been @#LAT-DLM&

B.

Question 18

Maxiset Constructions applies overhead to jobs using machine hours.The following data are available for the year: $\begin{array}{lr}
\text { Estimated machine hours } & 200000 \
\text { Actual machine hours } & 150000 \
\text { Actual overhead } & \$ 750000
\end{array}$  
At the end of the year,it was determined that overhead was underapplied by $150 000.
Required:
A. What was the total applied overhead for the year?
B. What was the predetermined overhead rate?

Accepted Answer

A. Applied overhead must have been @#LAT-DLM&

B.

Question 19

In job costing,which of the following types of costs is usually the most difficult to trace to a product?

Accepted Answer

A)  Labour cost of machine operator 
B)  Labour cost of factory supervisor 
C)  Wood used to build custom furniture 
D)  Rubber used in tyre manufacturing 
A)  Labour cost of machine operator 
B)  Labour cost of factory supervisor 
C)  Wood used to build custom furniture 
D)  Rubber used in tyre manufacturing

Question 20

The formula for calculating the amount of overhead applied to a product is:

Accepted Answer

A)  Predetermined overhead rate * Estimated units of cost driver 
B)  Predetermined overhead rate * Actual overhead costs 
C)  Predetermined overhead rate * Actual units of cost driver 
D)  Predetermined overhead rate * Estimated overhead costs 
A)  Predetermined overhead rate * Estimated units of cost driver 
B)  Predetermined overhead rate * Actual overhead costs 
C)  Predetermined overhead rate * Actual units of cost driver 
D)  Predetermined overhead rate * Estimated overhead costs

Which of the following types of costs is not easily tracked or traced to a specific job or file in job-order costing?

Which of the following types of costs would be classified as a product cost in a job order costing system? Check those that apply. indirect materials direct materials administrative coerhead manufacturing overhead direct labour advertising costs indirect labour sales commissions

Which of the following statements is correct?

The formula for calculating the predetermined overhead rate is:

Which of the following would not be included on a job cost report?

What is the formula for calculating the predetermined overhead rate when determining job costs? How is the rate used in job costing?

Which of the following costs is the most likely to not be allocated to a product in a job costing environment?

For each of the following organisations,indicate which types might be best suited to job costing. Hospital Beverage producer Construction company Law firm Clothing manufacturer Drug manufacturer Oil refinery Paint manufacturer

Which of the following types of costs would be specifically tracked or traced and assigned to a specific job in a job order costing system?

In job costing,which of the following types of costs is usually the most difficult to trace to a product?

The formula for calculating the amount of overhead applied to a product is:

Introduction to Managerial Accounting

Product Costing: Manufacturing Processes, cost Terminology and Cost Flows

Cost Behaviour

Process Costing Systems

Service and Operations Costing

Departmental Overhead Costing

Activity-Based Costing

Cost-Volume-Profit Analysis

Relevant Costs and Product Planning Decisions

Long-Term Capital Investmentdecisions

Fixed and Rolling Budgets for Planning and Decision Making

Management Accounting for Cost Control and Performance Evaluation Flexible Budgets and Variance Analysis

Decentralisation and Modern Performance Management Systems the Balanced Scorecard

Accounting for Sustainability Social Reporting,environmental Reporting and Management Accounting

Filters

Exam 4: Job Costing and Overhead Costing Systems

Which of the following types of costs is not easily tracked or traced to a specific job or file in job-order costing?

Which of the following types of costs would be classified as a product cost in a job order costing system? Check those that apply. indirect materials direct materials administrative coerhead manufacturing overhead direct labour advertising costs indirect labour sales commissions

Which of the following statements is correct?

The formula for calculating the predetermined overhead rate is:

Which of the following would not be included on a job cost report?

What is the formula for calculating the predetermined overhead rate when determining job costs? How is the rate used in job costing?

Which of the following costs is the most likely to not be allocated to a product in a job costing environment?

For each of the following organisations,indicate which types might be best suited to job costing. Hospital Beverage producer Construction company Law firm Clothing manufacturer Drug manufacturer Oil refinery Paint manufacturer

Which of the following types of costs would be specifically tracked or traced and assigned to a specific job in a job order costing system?

In job costing,which of the following types of costs is usually the most difficult to trace to a product?

The formula for calculating the amount of overhead applied to a product is:

Introduction to Managerial Accounting

Product Costing: Manufacturing Processes, cost Terminology and Cost Flows

Cost Behaviour

Process Costing Systems

Service and Operations Costing

Departmental Overhead Costing

Activity-Based Costing

Cost-Volume-Profit Analysis

Relevant Costs and Product Planning Decisions

Long-Term Capital Investmentdecisions

Fixed and Rolling Budgets for Planning and Decision Making

Management Accounting for Cost Control and Performance Evaluation Flexible Budgets and Variance Analysis

Decentralisation and Modern Performance Management Systems the Balanced Scorecard

Accounting for Sustainability Social Reporting,environmental Reporting and Management Accounting

Filters