Question 1

The first three steps to allocating manufacturing overhead are taken before the year begins and include all of the following except

Accepted Answer

A) estimating total manufacturing overhead costs for the coming year. 
B) selecting an allocation base and estimating the total amount that will be used during the year. 
C) allocating some manufacturing overhead to each individual job. 
D) calculating the predetermined manufacturing overhead rate. 
A) estimating total manufacturing overhead costs for the coming year. 
B) selecting an allocation base and estimating the total amount that will be used during the year. 
C) allocating some manufacturing overhead to each individual job. 
D) calculating the predetermined manufacturing overhead rate.

Question 2

Peterson Company gathered the following information for the year ended December 31:
 
What would the predetermined manufacturing overhead rate for the year be using direct labor cost as the allocation base?

Accepted Answer

A) 130% of direct labor cost 
B) 90% of direct labor cost 
C) 111% of direct labor cost 
D) 100% of direct labor cost 
A) 130% of direct labor cost 
B) 90% of direct labor cost 
C) 111% of direct labor cost 
D) 100% of direct labor cost

Question 3

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

Accepted Answer

A) credit to Manufacturing Overhead account. 
B) debit to Work-in-Process Inventory account. 
C) credit to Accumulated Depreciation account. 
D) debit to Depreciation Expense account. 
A) credit to Manufacturing Overhead account. 
B) debit to Work-in-Process Inventory account. 
C) credit to Accumulated Depreciation account. 
D) debit to Depreciation Expense account.

Question 4

If a job consists of a batch of identical units,how can managers find the unit cost?

Accepted Answer

A) By tracing direct materials to each unit 
B) By multiplying the total job cost by the number of units in the job 
C) By dividing the total job cost by the number of units in the job 
D) By tracing direct labor to each unit 
A) By tracing direct materials to each unit 
B) By multiplying the total job cost by the number of units in the job 
C) By dividing the total job cost by the number of units in the job 
D) By tracing direct labor to each unit

Question 5

Beta Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs.The company estimated that it would incur $600,000 of manufacturing overhead during the year and that 150,000 direct labor hours would be worked.During the year,the company actually incurred manufacturing overhead costs of $582,000 and 135,000 direct labor hours were worked.
By how much was manufacturing overhead overallocated or underallocated for the year?

Accepted Answer

A) $18,000 underallocated 
B) $42,000 overallocated 
C) $42,000 underallocated 
D) $18,000 overallocated 
A) $18,000 underallocated 
B) $42,000 overallocated 
C) $42,000 underallocated 
D) $18,000 overallocated

Question 6

Overallocated manufacturing overhead costs occur when the manufacturing overhead costs allocated are greater than the amount actually incurred.

Accepted Answer

A) True 
 B)False

Question 7

The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company:
 
Additional data:
1.Actual manufacturing overhead for January amounted to $62,000.
2.Total direct labor cost for January was $63,000.
3.The predetermined manufacturing overhead rate is based on direct labor cost.The budget for the year called for $250,000 of direct labor cost and $350,000 of manufacturing overhead costs.
4.The only job unfinished on January 31 was Job No.151,for which total direct labor charges were $5,200 (800 direct labor hours)and total direct material charges were $14,000.
5.Cost of direct materials placed in production during January totaled $123,000.There were no indirect material requisitions during January.
6.January 31 balance in raw materials inventory was $35,000.
7.Finished goods inventory balance on January 31 was $34,500.
What is the work in process inventory balance on January 31?

Accepted Answer

A) $7,280 
B) $22,914 
C) $26,480 
D) $50,914 
A) $7,280 
B) $22,914 
C) $26,480 
D) $50,914

Question 8

Records for Speedy's Custom Networks contained the following data.   
Compute:
a.Work in process inventory on June 30
b.Finished goods inventory on June 30
c.Cost of goods sold for June

Accepted Answer

The answer of Records for Speedy's Custom Networks contained the...

Question 9

Solid Oak Bureau Company uses job costing.Solid Oak Bureau Company has two departments,Trimming and Finishing.Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department.The following additional information is available:
 
Actual data for completed Job No.650 is as follows:
 
What is the predetermined manufacturing overhead rate for the Finishing Department?

Accepted Answer

A) $6.50 per direct labor hour 
B) $52.00 per direct labor hour 
C) $10.00 per direct labor hour 
D) $10.40 per direct labor hour 
A) $6.50 per direct labor hour 
B) $52.00 per direct labor hour 
C) $10.00 per direct labor hour 
D) $10.40 per direct labor hour

Question 10

Manufacturing overhead is underallocated if the amount

Accepted Answer

A) estimated for the period is greater than the actual amount incurred. 
B) estimated for the period is less than the actual amount incurred. 
C) allocated during the period is less than the actual amount incurred. 
D) allocated during the period is greater than the actual amount incurred. 
A) estimated for the period is greater than the actual amount incurred. 
B) estimated for the period is less than the actual amount incurred. 
C) allocated during the period is less than the actual amount incurred. 
D) allocated during the period is greater than the actual amount incurred.

Question 11

Manufacturing overhead has an underallocated balance of $6,200;raw materials inventory balance is $50,000;work in process inventory is $30,000;finished goods inventory is $20,000;and cost of goods sold is $100,000.
Using this information,which account would have an opening credit balance?

Accepted Answer

A) Raw Materials Inventory account 
B) Finished Goods Inventory account 
C) Work-in-Process Inventory account 
D) None of the above 
A) Raw Materials Inventory account 
B) Finished Goods Inventory account 
C) Work-in-Process Inventory account 
D) None of the above

Question 12

Missy & Daughters allocates manufacturing overhead to jobs based on machine hours.The company has the following estimated costs for the upcoming year:
 
The company estimates that 1,360 direct labor hours will be worked in the upcoming year,while 1,000 machine hours will be used during the year.The predetermined manufacturing overhead rate per machine hour will be

Accepted Answer

A) $29. 
B) $124. 
C) $244. 
D) $68. 
A) $29. 
B) $124. 
C) $244. 
D) $68.

Question 13

The following account balances at the beginning of January were selected from the general ledger of Bluestone Industries:   
Additional data:
1.Actual manufacturing overhead for January amounted to $80,500.
2.Total direct labor cost for January was $70,000;actual direct labor hours for January were 4,200.
3.The predetermined manufacturing overhead rate is based on direct labor hours.The budget for the year called for $350,000 of direct labor cost and $425,000 of manufacturing overhead costs.Estimated direct labor hours for the year were expected to be 20,000.
4.The only job unfinished on January 31 was Job No.449,for which total direct labor charges were $22,000 (1,200 direct labor hours)and total direct material charges were $17,600.
5.Cost of direct materials placed in production during January totaled $129,500.There were no indirect material requisitions during January.
6.January 31 balance in raw materials inventory was $30,000.
7.Finished goods inventory balance on January 31 was $44,700.
Required:
a)Determine the predetermined manufacturing overhead rate.
b)Determine the amount of materials purchased during January.
c)Determine cost of goods manufactured for January.
d)Determine the work in process inventory balance on January 31.
e)Determine cost of goods sold for January.
f)Determine whether manufacturing overhead is overallocated or underallocated and by what amount at Jan.31.

Accepted Answer

The answer of The following account balances at the beginning...

Question 14

Before the year began,Plastics Manufacturing estimated that manufacturing overhead for the year would be $150,000 and that 25,000 direct labor hours would be worked.Actual results for the year included the following:
 
If the company allocates manufacturing overhead based on direct labor hours,the manufacturing overhead for the year would have been

Accepted Answer

A) $62,000 overallocated. 
B) $62,000 underallocated. 
C) $32,000 overallocated. 
D) $32,000 underallocated. 
A) $62,000 overallocated. 
B) $62,000 underallocated. 
C) $32,000 overallocated. 
D) $32,000 underallocated.

Question 15

Wood Sculptor Company had the following labor-related transactions at their plant last month:
 
What is the journal entry to record the incurrence of direct labor?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 16

Perry Moldings has the following estimated costs for the upcoming year:
 
The company estimates that 1,200 direct labor hours will be worked in the upcoming year,while 2,000 machine hours will be used during the year.The predetermined manufacturing overhead rate per direct labor hour is closest to

Accepted Answer

A) $162. 
B) $55. 
C) $50. 
D) $89. 
A) $162. 
B) $55. 
C) $50. 
D) $89.

Question 17

For each of the following items,determine whether it would be more appropriate to increase
A)manufacturing overhead,or
B)work in process inventory.Enter either the letter A or the letter B on the line in front of each of the following statements.

Accepted Answer

The answer of For each of the following items,determine whether...

Question 18

Tina's Interior Design expects its designers will work a total of 14,000 direct labor hours during the upcoming year.Tina's estimated total indirect costs are $168,000.The indirect cost allocation rate is based on direct labor hours.
A.What is the indirect cost allocation rate?
B.What indirect costs will be allocated to client 332,if one designer works 25 hours?

Accepted Answer

The answer of Tina's Interior Design expects its designers will...

Question 19

Determining how much manufacturing overhead is overallocated or underallocated

Accepted Answer

A) is done before the period starts. 
B) is done during the period. 
C) can be done at any time. 
D) is done at the end of the period. 
A) is done before the period starts. 
B) is done during the period. 
C) can be done at any time. 
D) is done at the end of the period.

Question 20

A manufacturer of plywood would use what type of product costing system?

Accepted Answer

A) Process costing 
B) Job costing 
C) Either job or process 
D) Both job and process 
A) Process costing 
B) Job costing 
C) Either job or process 
D) Both job and process

The first three steps to allocating manufacturing overhead are taken before the year begins and include all of the following except

Peterson Company gathered the following information for the year ended December 31: What would the predetermined manufacturing overhead rate for the year be using direct labor cost as the allocation base?

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

If a job consists of a batch of identical units,how can managers find the unit cost?

Overallocated manufacturing overhead costs occur when the manufacturing overhead costs allocated are greater than the amount actually incurred.

Records for Speedy's Custom Networks contained the following data. Compute: a.Work in process inventory on June 30 b.Finished goods inventory on June 30 c.Cost of goods sold for June

Manufacturing overhead is underallocated if the amount

Manufacturing overhead has an underallocated balance of $6,200;raw materials inventory balance is $50,000;work in process inventory is $30,000;finished goods inventory is $20,000;and cost of goods sold is $100,000. Using this information,which account would have an opening credit balance?

Wood Sculptor Company had the following labor-related transactions at their plant last month: What is the journal entry to record the incurrence of direct labor?

Perry Moldings has the following estimated costs for the upcoming year: The company estimates that 1,200 direct labor hours will be worked in the upcoming year,while 2,000 machine hours will be used during the year.The predetermined manufacturing overhead rate per direct labor hour is closest to

For each of the following items,determine whether it would be more appropriate to increase A)manufacturing overhead,or B)work in process inventory.Enter either the letter A or the letter B on the line in front of each of the following statements.

Determining how much manufacturing overhead is overallocated or underallocated

A manufacturer of plywood would use what type of product costing system?

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

The first three steps to allocating manufacturing overhead are taken before the year begins and include all of the following except

Peterson Company gathered the following information for the year ended December 31: What would the predetermined manufacturing overhead rate for the year be using direct labor cost as the allocation base?

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

If a job consists of a batch of identical units,how can managers find the unit cost?

Overallocated manufacturing overhead costs occur when the manufacturing overhead costs allocated are greater than the amount actually incurred.

Records for Speedy's Custom Networks contained the following data. Compute: a.Work in process inventory on June 30 b.Finished goods inventory on June 30 c.Cost of goods sold for June

Manufacturing overhead is underallocated if the amount

Manufacturing overhead has an underallocated balance of $6,200;raw materials inventory balance is $50,000;work in process inventory is $30,000;finished goods inventory is $20,000;and cost of goods sold is $100,000. Using this information,which account would have an opening credit balance?

Wood Sculptor Company had the following labor-related transactions at their plant last month: What is the journal entry to record the incurrence of direct labor?

Perry Moldings has the following estimated costs for the upcoming year: The company estimates that 1,200 direct labor hours will be worked in the upcoming year,while 2,000 machine hours will be used during the year.The predetermined manufacturing overhead rate per direct labor hour is closest to

For each of the following items,determine whether it would be more appropriate to increase A)manufacturing overhead,or B)work in process inventory.Enter either the letter A or the letter B on the line in front of each of the following statements.

Determining how much manufacturing overhead is overallocated or underallocated

A manufacturer of plywood would use what type of product costing system?

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