Question 1

Match each item with the correct statement below.
-The difference between actual overhead and applied overhead

Accepted Answer

A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold 
A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold

Question 2

schedule of costs of goods sold is prepared

Accepted Answer

A) completion of job 
B) end of each accounting period 
C) materials are moved from storage into production 
D) product is sold 
E) end of year 
A) completion of job 
B) end of each accounting period 
C) materials are moved from storage into production 
D) product is sold 
E) end of year

Question 3

Which of the following statements is true?

Accepted Answer

A)  There will be many different jobs on a job-order cost sheet. 
B)  Direct labor is allocated to jobs along with overhead using a cost driver. 
C)  Work-in-process consists of all complete work. 
D)  Time tickets are used to post the cost of direct labor to individual jobs. 
E)  None of these. 
A)  There will be many different jobs on a job-order cost sheet. 
B)  Direct labor is allocated to jobs along with overhead using a cost driver. 
C)  Work-in-process consists of all complete work. 
D)  Time tickets are used to post the cost of direct labor to individual jobs. 
E)  None of these.

Question 4

How are unit costs calculated?

Accepted Answer

A)  by dividing total cost associated with the units produced by the unit cost 
B)  by adding all variable costs per unit associated with the units produced 
C)  by dividing total fixed costs by the number of units produced 
D)  by dividing total cost associated with the units produced by the number of units produced 
E)  by adding unit variable costs to total fixed costs 
A)  by dividing total cost associated with the units produced by the unit cost 
B)  by adding all variable costs per unit associated with the units produced 
C)  by dividing total fixed costs by the number of units produced 
D)  by dividing total cost associated with the units produced by the number of units produced 
E)  by adding unit variable costs to total fixed costs

Question 5

direct materials, direct labor and applied overhead are totaled to yield manufacturing cost of job

Accepted Answer

A) completion of job 
B) end of each accounting period 
C) materials are moved from storage into production 
D) product is sold 
E) end of year 
A) completion of job 
B) end of each accounting period 
C) materials are moved from storage into production 
D) product is sold 
E) end of year

Question 6

The cost of goods sold appearing on the income statement as an expense is the normal cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 7

Applied overhead costs are charged to ________________.

Accepted Answer

The answer of Applied overhead costs are charged to ________________....

Question 8

Using normal costing, which of the following is false about actual overhead?

Accepted Answer

A)  Actual overhead is recorded to the overhead control account during the period. 
B)  It is reconciled at the end of a period with applied overhead. 
C)  It is separated into many smaller accounts, such as indirect labor, supplies, etc. 
D)  All of these are correct. 
E)  None of these. 
A)  Actual overhead is recorded to the overhead control account during the period. 
B)  It is reconciled at the end of a period with applied overhead. 
C)  It is separated into many smaller accounts, such as indirect labor, supplies, etc. 
D)  All of these are correct. 
E)  None of these.

Question 9

Actual overhead is reconciled with applied overhead at the beginning of the period.

Accepted Answer

A) True 
 B)False

Question 10

Figure 5-10.The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A:
   Plantwide overhead rate is $22.50 per machine hour.
-Refer to Figure 5-10. One-half of Job X4A was sold for $10,000. What is the total amount of costs assigned to Job X4A?

Accepted Answer

A)  $9,000 
B)  $20,250 
C)  $13,500 
D)  $15,750 
A)  $9,000 
B)  $20,250 
C)  $13,500 
D)  $15,750

Question 11

Williams Incorporated estimated overhead to be $440,000 and direct labor hours to be 100,000 for the year. Actual direct labor ended up being 120,000 hours. Actual overhead for the year amounted to $500,000.

Accepted Answer

The answer of Williams Incorporated estimated overhead to be $440,000...

Question 12

A _____________________ is a single overhead rate calculated by using all estimated overhead for a factory divided by the estimated activity level across the entire factory.

Accepted Answer

plantwide

Question 13

immaterial overhead variance closed to costs of goods sold

Accepted Answer

A) completion of job 
B) end of each accounting period 
C) materials are moved from storage into production 
D) product is sold 
E) end of year 
A) completion of job 
B) end of each accounting period 
C) materials are moved from storage into production 
D) product is sold 
E) end of year

Question 14

At the beginning of the year Grey Corporation estimated the following:
  Grey uses departmental overhead rates. In the assembly department , overhead is applied on direct labor hours. In the packaging department, overhead is applied on the basis of machine hours. Actual data for the month of April are as follows:
   Required:
A.) Calculate the predetermined overhead rate for the assembly and packaging departments.
B.) Calculate the overhead applied to production in each department for the month of April.
C.) Calculate how much each department's overhead is overapplied/underapplied.

Accepted Answer

A.)
Assembly department overhead:
$840,0

Question 15

Figure 5-3.Mitchell's Softball Gloves Company estimated the following at the beginning of the year:
   Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department.Actual data for August is as follows:
  
-Refer to Figure 5-3. If Mitchell uses a plantwide overhead rate based on direct labor hours, instead of departmental rates, what is the predetermined overhead rate rounded to the nearest cent?

Accepted Answer

A)  $5 per direct labor hour 
B)  $7.22 per machine hour 
C)  $4 per direct labor hour 
D)  $2.57 per direct labor hour 
E)  $0.52 per direct labor hour 
A)  $5 per direct labor hour 
B)  $7.22 per machine hour 
C)  $4 per direct labor hour 
D)  $2.57 per direct labor hour 
E)  $0.52 per direct labor hour

Question 16

Which of the following is the assignment process used with normal costing?

Accepted Answer

A)  Actual direct materials, actual direct labor and actual overhead cost are assigned to products. 
B)  Actual direct materials cost is assigned to products, but direct labor and overhead costs are assigned using predetermined rates. 
C)  Actual direct labor cost is assigned to products, but direct material and overhead costs are assigned using predetermined rates. 
D)  Actual direct material and direct labor costs are assigned to products, but overhead costs are assigned using predetermined rates. 
E)  All manufacturing costs are assigned using predetermined rates. 
A)  Actual direct materials, actual direct labor and actual overhead cost are assigned to products. 
B)  Actual direct materials cost is assigned to products, but direct labor and overhead costs are assigned using predetermined rates. 
C)  Actual direct labor cost is assigned to products, but direct material and overhead costs are assigned using predetermined rates. 
D)  Actual direct material and direct labor costs are assigned to products, but overhead costs are assigned using predetermined rates. 
E)  All manufacturing costs are assigned using predetermined rates.

Question 17

Figure 5-1.Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor hours to be 40,000. During February, Morrow has 4,200 direct labor hours and 8,000 machine hours.
-Refer to Figure 5-1. If the actual overhead for February is $64,700, what is the overhead variance and is it overapplied or underapplied?

Accepted Answer

A)  $400 underapplied 
B)  $200 overapplied 
C)  $1,000 underapplied 
D)  $400 overapplied 
E)  $600 overapplied 
A)  $400 underapplied 
B)  $200 overapplied 
C)  $1,000 underapplied 
D)  $400 overapplied 
E)  $600 overapplied

Question 18

Using a time ticket, the cost accounting department can enter the cost of direct materials onto the correct job-order cost sheet.

Accepted Answer

A) True 
 B)False

Question 19

A normal job-order costing system is a system that uses:

Accepted Answer

A)  actual costs for direct materials and estimated costs for direct labor and overhead. 
B)  estimated costs for direct materials, direct labor, and overhead. 
C)  actual costs for direct materials and direct labor and estimated costs for overhead. 
D)  actual costs for direct materials and overhead, estimated costs for direct labor. 
A)  actual costs for direct materials and estimated costs for direct labor and overhead. 
B)  estimated costs for direct materials, direct labor, and overhead. 
C)  actual costs for direct materials and direct labor and estimated costs for overhead. 
D)  actual costs for direct materials and overhead, estimated costs for direct labor.

Question 20

Match each item with the correct statement below.
-An overhead rate computed using estimated data

Accepted Answer

A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold 
A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold

Match each item with the correct statement below. -The difference between actual overhead and applied overhead

schedule of costs of goods sold is prepared

Which of the following statements is true?

How are unit costs calculated?

direct materials, direct labor and applied overhead are totaled to yield manufacturing cost of job

The cost of goods sold appearing on the income statement as an expense is the normal cost of goods sold.

Applied overhead costs are charged to ________________.

Using normal costing, which of the following is false about actual overhead?

Actual overhead is reconciled with applied overhead at the beginning of the period.

Figure 5-10.The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A: Plantwide overhead rate is $22.50 per machine hour. -Refer to Figure 5-10. One-half of Job X4A was sold for $10,000. What is the total amount of costs assigned to Job X4A?

Williams Incorporated estimated overhead to be $440,000 and direct labor hours to be 100,000 for the year. Actual direct labor ended up being 120,000 hours. Actual overhead for the year amounted to $500,000.

A _____________________ is a single overhead rate calculated by using all estimated overhead for a factory divided by the estimated activity level across the entire factory.

immaterial overhead variance closed to costs of goods sold

Which of the following is the assignment process used with normal costing?

Using a time ticket, the cost accounting department can enter the cost of direct materials onto the correct job-order cost sheet.

A normal job-order costing system is a system that uses:

Match each item with the correct statement below. -An overhead rate computed using estimated data

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 5: Job-Order Costing

Match each item with the correct statement below. -The difference between actual overhead and applied overhead

schedule of costs of goods sold is prepared

Which of the following statements is true?

How are unit costs calculated?

direct materials, direct labor and applied overhead are totaled to yield manufacturing cost of job

The cost of goods sold appearing on the income statement as an expense is the normal cost of goods sold.

Applied overhead costs are charged to ________________.

Using normal costing, which of the following is false about actual overhead?

Actual overhead is reconciled with applied overhead at the beginning of the period.

Figure 5-10.The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A: Plantwide overhead rate is $22.50 per machine hour. -Refer to Figure 5-10. One-half of Job X4A was sold for $10,000. What is the total amount of costs assigned to Job X4A?

Williams Incorporated estimated overhead to be $440,000 and direct labor hours to be 100,000 for the year. Actual direct labor ended up being 120,000 hours. Actual overhead for the year amounted to $500,000.

A _____________________ is a single overhead rate calculated by using all estimated overhead for a factory divided by the estimated activity level across the entire factory.

immaterial overhead variance closed to costs of goods sold

Which of the following is the assignment process used with normal costing?

Using a time ticket, the cost accounting department can enter the cost of direct materials onto the correct job-order cost sheet.

A normal job-order costing system is a system that uses:

Match each item with the correct statement below. -An overhead rate computed using estimated data

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters