Question 1

Wisteria Company provided the following data:

Accepted Answer

predetermined overhe

Question 2

Which of the following is not a manufacturing cost element?

Accepted Answer

A)  direct materials 
B)  direct labor 
C)  advertising expense 
D)  overhead 
E)  All of these are correct. 
A)  direct materials 
B)  direct labor 
C)  advertising expense 
D)  overhead 
E)  All of these are correct.

Question 3

A source document that would not be used to help decide the cost of a job is (are)

Accepted Answer

A)  a material requisition form. 
B)  a time ticket for direct labor. 
C)  a time ticket for indirect labor. 
D)  a material requisition form and a time ticket for direct labor. 
E)  all items listed are helpful to decide the cost of a job. 
A)  a material requisition form. 
B)  a time ticket for direct labor. 
C)  a time ticket for indirect labor. 
D)  a material requisition form and a time ticket for direct labor. 
E)  all items listed are helpful to decide the cost of a job.

Question 4

Which of the following can serve as a subsidiary ledger for the finished goods inventory?

Accepted Answer

A)  completed job-order cost sheets 
B)  incomplete job-order cost sheets 
C)  work-in-process inventory 
D)  raw material inventory 
E)  All of these are correct. 
A)  completed job-order cost sheets 
B)  incomplete job-order cost sheets 
C)  work-in-process inventory 
D)  raw material inventory 
E)  All of these are correct.

Question 5

Which type of cost poses the most problems in using an actual cost system?

Accepted Answer

A)  direct materials 
B)  overhead 
C)  direct labor 
D)  All of these are correct. 
E)  None of these are correct. 
A)  direct materials 
B)  overhead 
C)  direct labor 
D)  All of these are correct. 
E)  None of these are correct.

Question 6

Figure 5-12.Walter Company uses a job-order costing system to account for product costs. The following information pertains to the current year:
   Plantwide overhead rate is $18 per direct labor hour.
-Refer to Figure 5-12. What is the total amount debited to Finished Goods Inventory in the current year?

Accepted Answer

A)  $490,000 
B)  $510,000 
C)  $450,000 
D)  $550,000 
A)  $490,000 
B)  $510,000 
C)  $450,000 
D)  $550,000

Question 7

At the beginning of the year, Fluman Corporation estimates overhead will be $150,000. If the actual overhead for the year is $152,000 and the applied overhead for the year is $143,000, what is the journal entry needed to reconcile the overhead variance? Assume that the overhead variance is immaterial.

Accepted Answer

The answer of At the beginning of the year, Fluman...

Question 8

The Kraig Corporation manufactures custom-made purses. The following data pertains to Job XY5:   Plantwide overhead is applied using a plant-wide rate based on direct labor hours. Plantwide overhead was budgeted at $60,000 for the year and the direct labor hours were estimated to be 15,000. Job XY5 consists of 50 units. What is overhead cost assigned to Job XY5?

Accepted Answer

A)  $200 
B)  $400 
C)  $750 
D)  $1,500 
A)  $200 
B)  $400 
C)  $750 
D)  $1,500

Question 9

Figure 5-7.Laudermilk produces dairy equipment. Most of its jobs have a number of units per job. The company has two different departments through which all jobs pass. Overhead is applied using a plantwide rate of $13 per direct labor hour. Direct labor wages average $8 an hour. Data for Job #3 for the year is:
  
-Refer to Figure 5-7. Compute the cost per unit.

Accepted Answer

A)  $11.58 
B)  $5.60 
C)  $5.73 
D)  $11.45 
E)  none of these 
A)  $11.58 
B)  $5.60 
C)  $5.73 
D)  $11.45 
E)  none of these

Question 10

At the beginning of the year, Wilson Company estimated the following:   Wilson used normal costing and applies overhead on the basis of direct labor hours. For the month of September, direct labor hours equaled 9,350 and actual overhead equaled $46,750.
Calculate the overhead applied to production in September.

Accepted Answer

A)  $56,100 
B)  $30,000 
C)  $46,750 
D)  $5 per direct labor hour 
E)  None of these. 
A)  $56,100 
B)  $30,000 
C)  $46,750 
D)  $5 per direct labor hour 
E)  None of these.

Question 11

When purchasing raw materials on account, what type of accounts would increase?

Accepted Answer

A)  Assets and equity 
B)  Liabilities and expenses 
C)  Liabilities and revenues 
D)  Assets and liabilities 
E)  Assets and expenses 
A)  Assets and equity 
B)  Liabilities and expenses 
C)  Liabilities and revenues 
D)  Assets and liabilities 
E)  Assets and expenses

Question 12

Which of the following sentences is not true?

Accepted Answer

A)  Actual overhead costs always enter the Work-in-Process account. 
B)  The cost of a job includes direct materials, direct labor, and applied overhead. 
C)  When a job is complete, it must leave Work-in-Process and be entered into Finished Goods or Cost of Goods Sold. 
D)  All of these are correct. 
E)  None of these are correct. 
A)  Actual overhead costs always enter the Work-in-Process account. 
B)  The cost of a job includes direct materials, direct labor, and applied overhead. 
C)  When a job is complete, it must leave Work-in-Process and be entered into Finished Goods or Cost of Goods Sold. 
D)  All of these are correct. 
E)  None of these are correct.

Question 13

Overhead costs are assigned to Finished Goods using a predetermined rate.

Accepted Answer

A) True 
 B)False

Question 14

Match each item with the correct statement below.
-Estimated overhead for a single department divided by the estimated activity level for that same department

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 15

The cost of goods sold before an adjustment for an overhead variance is called ____________________.

Accepted Answer

normal cos

Question 16

Figure 5-2.At the beginning of the year, Kyla Inc. estimated that overhead would be $880,000 and direct labor hours would be 220,000. At the end of the year, actual overhead was $920,600 and there were actually 230,000 direct labor hours.
-Refer to Figure 5-2. What is the overhead variance?

Accepted Answer

A)  $600 underapplied 
B)  $600 overapplied 
C)  $200 underapplied 
D)  $400 overapplied 
E)  $800 underapplied 
A)  $600 underapplied 
B)  $600 overapplied 
C)  $200 underapplied 
D)  $400 overapplied 
E)  $800 underapplied

Question 17

Smith has applied overhead of $73,000 and actual overhead of $87,600 for the month of November. It applies overhead based on direct labor hours and those equaled 14,600 in November. Overhead for the year was estimated to be $900,000. How many direct labor hours were estimated for the year?

Accepted Answer

A)  175,200 
B)  180,000 
C)  $5 
D)  150,000 
E)  $6 
A)  175,200 
B)  180,000 
C)  $5 
D)  150,000 
E)  $6

Question 18

Feline Company uses a normal job-order costing system. Currently, a plantwide overhead rate based on direct labor is used. Lola Katz, the plant manager, has heard that departmental overhead rates can offer significantly better cost assignments than a plantwide rate can offer. Some jobs spend most of their time in Department A, while others spend most of their time in Department B. Feline has the following data for its two departments for the coming year:

Accepted Answer

The answer of Feline Company uses a normal job-order costing...

Question 19

Which of the following costs is not included on a job-order cost sheet?

Accepted Answer

A)  direct material costs 
B)  applied plantwide overhead costs 
C)  direct labor costs 
D)  actual plantwide overhead costs 
A)  direct material costs 
B)  applied plantwide overhead costs 
C)  direct labor costs 
D)  actual plantwide overhead costs

Question 20

Time tickets are filled out for

Accepted Answer

A)  indirect laborers. 
B)  direct laborers. 
C)  both direct laborers and indirect laborers. 
D)  direct materials. 
E)  supervisors. 
A)  indirect laborers. 
B)  direct laborers. 
C)  both direct laborers and indirect laborers. 
D)  direct materials. 
E)  supervisors.

Wisteria Company provided the following data:

Which of the following is not a manufacturing cost element?

A source document that would not be used to help decide the cost of a job is (are)

Which of the following can serve as a subsidiary ledger for the finished goods inventory?

Which type of cost poses the most problems in using an actual cost system?

When purchasing raw materials on account, what type of accounts would increase?

Which of the following sentences is not true?

Overhead costs are assigned to Finished Goods using a predetermined rate.

Match each item with the correct statement below. -Estimated overhead for a single department divided by the estimated activity level for that same department

The cost of goods sold before an adjustment for an overhead variance is called ____________________.

Figure 5-2.At the beginning of the year, Kyla Inc. estimated that overhead would be $880,000 and direct labor hours would be 220,000. At the end of the year, actual overhead was $920,600 and there were actually 230,000 direct labor hours. -Refer to Figure 5-2. What is the overhead variance?

Smith has applied overhead of $73,000 and actual overhead of $87,600 for the month of November. It applies overhead based on direct labor hours and those equaled 14,600 in November. Overhead for the year was estimated to be $900,000. How many direct labor hours were estimated for the year?

Which of the following costs is not included on a job-order cost sheet?

Time tickets are filled out for

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

Wisteria Company provided the following data:

Which of the following is not a manufacturing cost element?

A source document that would not be used to help decide the cost of a job is (are)

Which of the following can serve as a subsidiary ledger for the finished goods inventory?

Which type of cost poses the most problems in using an actual cost system?

When purchasing raw materials on account, what type of accounts would increase?

Which of the following sentences is not true?

Overhead costs are assigned to Finished Goods using a predetermined rate.

Match each item with the correct statement below. -Estimated overhead for a single department divided by the estimated activity level for that same department

The cost of goods sold before an adjustment for an overhead variance is called ____________________.

Figure 5-2.At the beginning of the year, Kyla Inc. estimated that overhead would be $880,000 and direct labor hours would be 220,000. At the end of the year, actual overhead was $920,600 and there were actually 230,000 direct labor hours. -Refer to Figure 5-2. What is the overhead variance?

Smith has applied overhead of $73,000 and actual overhead of $87,600 for the month of November. It applies overhead based on direct labor hours and those equaled 14,600 in November. Overhead for the year was estimated to be $900,000. How many direct labor hours were estimated for the year?

Which of the following costs is not included on a job-order cost sheet?

Time tickets are filled out for

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