Question 1

Use the following information to answer the following item(s).
  
-If the budgeted factory overhead rate is used to apply overhead, applied manufacturing overhead would be

Accepted Answer

A)  $321,000. 
B)  $328,000. 
C)  $336,000. 
D)  $344,400. 
A)  $321,000. 
B)  $328,000. 
C)  $336,000. 
D)  $344,400. C

Question 2

Harnack Company had the following information:
   Budgeted cost driver activity levels:
   Actual cost driver activity levels:
  
-If Job 200 used $8,736 of direct labour cost, the overhead applied using direct-labour cost as the cost driver should be

Accepted Answer

A)  $26,208. 
B)  $23,762. 
C)  $27,956. 
D)  $25,333. 
A)  $26,208. 
B)  $23,762. 
C)  $27,956. 
D)  $25,333. A

Question 3

Truss Inc. has two producing departments: assembly and finishing. The company has been using a plant-wide predetermined overhead rate based on direct labour cost. The following estimates were made for the current year:   a. Calculate a budgeted factory overhead rate for the current year based on direct labour cost.
b. Calculate separate departmental overhead rates based upon direct labour cost for assembly and machine hours for finishing.

Accepted Answer

a.   b.

Question 4

Witty, Inc. uses a job-order cost system and had the following data available for 20X1.
  
-The journal entry to record the sale of all jobs would include a

Accepted Answer

A)  debit to Finished Goods Inventory for $292,000. 
B)  credit to WIP Inventory for $256,000. 
C)  credit to Finished Goods Inventory for $256,000. 
D)  credit to Cost of Goods Sold for $292,000. 
A)  debit to Finished Goods Inventory for $292,000. 
B)  credit to WIP Inventory for $256,000. 
C)  credit to Finished Goods Inventory for $256,000. 
D)  credit to Cost of Goods Sold for $292,000.

Question 5

Which of the following is a product cost?

Accepted Answer

A)  Direct material costs 
B)  Selling costs 
C)  Distribution costs 
D)  Administrative costs 
A)  Direct material costs 
B)  Selling costs 
C)  Distribution costs 
D)  Administrative costs

Question 6

Dentlinger Company uses a job-order cost system and had the following data available for 20X2.
  
-The journal entry to record the factory overhead costs incurred would include a

Accepted Answer

A)  debit to Factory Department Overhead Control for $292,000. 
B)  credit to Factory Department Overhead Control for $286,000. 
C)  debit to WIP Inventory for $292,000. 
D)  credit to WIP Inventory for $286,000. 
A)  debit to Factory Department Overhead Control for $292,000. 
B)  credit to Factory Department Overhead Control for $286,000. 
C)  debit to WIP Inventory for $292,000. 
D)  credit to WIP Inventory for $286,000.

Question 7

Dentlinger Company uses a job-order cost system and had the following data available for 20X2.
  
-The journal entry to record the materials placed into production would include a

Accepted Answer

A)  credit to Direct-Materials Inventory for $164,000. 
B)  debit to Direct-Materials Inventory for $296,000. 
C)  credit to WIP Inventory for $164,000. 
D)  debit to WIP Inventory for $296,000. 
A)  credit to Direct-Materials Inventory for $164,000. 
B)  debit to Direct-Materials Inventory for $296,000. 
C)  credit to WIP Inventory for $164,000. 
D)  debit to WIP Inventory for $296,000.

Question 8

The proration method of disposing of overhead variances prorates the variance among three accounts including Direct-Materials Inventory, WIP Inventory and Finished Goods Inventory.

Accepted Answer

A) True 
 B)False

Question 9

Two extremes of product costing are job-order costing and normal costing.

Accepted Answer

A) True 
 B)False

Question 10

The overhead assigned to production using a predetermined overhead rate.

Accepted Answer

The answer of The overhead assigned to production using a...

Question 11

Budgeted factory overhead rates are calculated as

Accepted Answer

A)  budgeted total overhead/budgeted total activity. 
B)  estimated total overhead/actual total activity. 
C)  actual total overhead/actual total activity. 
D)  actual total overhead/estimated total activity. 
A)  budgeted total overhead/budgeted total activity. 
B)  estimated total overhead/actual total activity. 
C)  actual total overhead/actual total activity. 
D)  actual total overhead/estimated total activity.

Question 12

The proration method of disposing of overhead variances assigns the variance in proportion to the sizes of the ending account balances to

Accepted Answer

A)  WIP and finished goods inventory. 
B)  cost of goods sold and WIP inventory. 
C)  direct materials and WIP inventory. 
D)  cost of goods sold, WIP and finished goods inventory. 
A)  WIP and finished goods inventory. 
B)  cost of goods sold and WIP inventory. 
C)  direct materials and WIP inventory. 
D)  cost of goods sold, WIP and finished goods inventory.

Question 13

Samsonite Corp. uses a budgeted factory-overhead rate to apply overhead to production. The following data are available for the year ended December 31, 20X1.   Required:
a. Determine the budgeted factory-overhead rate based on direct-labour costs.
b. Determine the budgeted factory-overhead rate based on direct-labour hours.
c. What is the applied overhead based on direct-labour costs?
d. What is the applied overhead based on direct-labour hours?
e. Assuming the variance is immaterial, give the journal entry to write off the variance based on direct-labour hours.

Accepted Answer

a. $337,500/$225,000 = 150 per

Question 14

Which of the following industries is most likely to NOT use a job-order costing system?

Accepted Answer

A)  Construction 
B)  Chemicals 
C)  Aircraft 
D)  Printing 
A)  Construction 
B)  Chemicals 
C)  Aircraft 
D)  Printing

Question 15

A rate that is calculated by dividing budgeted overhead by budgeted cost-driver activity.

Accepted Answer

Budgeted f

Question 16

Dentlinger Company uses a job-order cost system and had the following data available for 20X2.
  
-The ending inventory of work in process is

Accepted Answer

A)  $260,000. 
B)  $254,000. 
C)  $128,000. 
D)  $72,000. 
A)  $260,000. 
B)  $254,000. 
C)  $128,000. 
D)  $72,000.

Question 17

Dentlinger Company uses a job-order cost system and had the following data available for 20X2.
  
-The ending inventory of finished goods is

Accepted Answer

A)  $160,000. 
B)  $72,000. 
C)  $188,000. 
D)  $584,000. 
A)  $160,000. 
B)  $72,000. 
C)  $188,000. 
D)  $584,000.

Question 18

Dentlinger Company uses a job-order cost system and had the following data available for 20X2.
  
-The journal entry to record the cost of goods completed would include a

Accepted Answer

A)  debit to WIP Inventory for $512,000. 
B)  credit to Finished Goods Inventory for $584,000. 
C)  credit to Cost of Goods Sold for $512,000. 
D)  credit to WIP Inventory for $584,000. 
A)  debit to WIP Inventory for $512,000. 
B)  credit to Finished Goods Inventory for $584,000. 
C)  credit to Cost of Goods Sold for $512,000. 
D)  credit to WIP Inventory for $584,000.

Question 19

The entry to record the requisition of direct materials would include a debit to WIP Inventory.

Accepted Answer

A) True 
 B)False

Question 20

Labour time tickets indicate the direct labour time worked by an individual on each job.

Accepted Answer

A) True 
 B)False

Use the following information to answer the following item(s). -If the budgeted factory overhead rate is used to apply overhead, applied manufacturing overhead would be

Harnack Company had the following information: Budgeted cost driver activity levels: Actual cost driver activity levels: -If Job 200 used $8,736 of direct labour cost, the overhead applied using direct-labour cost as the cost driver should be

Witty, Inc. uses a job-order cost system and had the following data available for 20X1. -The journal entry to record the sale of all jobs would include a

Which of the following is a product cost?

Dentlinger Company uses a job-order cost system and had the following data available for 20X2. -The journal entry to record the factory overhead costs incurred would include a

Dentlinger Company uses a job-order cost system and had the following data available for 20X2. -The journal entry to record the materials placed into production would include a

The proration method of disposing of overhead variances prorates the variance among three accounts including Direct-Materials Inventory, WIP Inventory and Finished Goods Inventory.

Two extremes of product costing are job-order costing and normal costing.

The overhead assigned to production using a predetermined overhead rate.

Budgeted factory overhead rates are calculated as

The proration method of disposing of overhead variances assigns the variance in proportion to the sizes of the ending account balances to

Which of the following industries is most likely to NOT use a job-order costing system?

A rate that is calculated by dividing budgeted overhead by budgeted cost-driver activity.

Dentlinger Company uses a job-order cost system and had the following data available for 20X2. -The ending inventory of work in process is

Dentlinger Company uses a job-order cost system and had the following data available for 20X2. -The ending inventory of finished goods is

Dentlinger Company uses a job-order cost system and had the following data available for 20X2. -The journal entry to record the cost of goods completed would include a

The entry to record the requisition of direct materials would include a debit to WIP Inventory.

Labour time tickets indicate the direct labour time worked by an individual on each job.

Management Accounting and Management Decisions

Cost Behaviour and Cost-Volume Relationships

Measurement of Cost Behaviour

Cost Management Systems

Cost Allocation and Activity-Based Costing Systems

Process-Costing Systems

Relevant Information and Decision Making: Marketing Decisions

Relevant Information and Decision Making: Production Decisions

Capital Budgeting Decisions

The Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems, the Balanced Scorecard, and Responsibility Accounting

Management Control in Decentralized Organizations

Filters

Exam 6: Job-Costing Systems

Use the following information to answer the following item(s). -If the budgeted factory overhead rate is used to apply overhead, applied manufacturing overhead would be

Harnack Company had the following information: Budgeted cost driver activity levels: Actual cost driver activity levels: -If Job 200 used $8,736 of direct labour cost, the overhead applied using direct-labour cost as the cost driver should be

Witty, Inc. uses a job-order cost system and had the following data available for 20X1. -The journal entry to record the sale of all jobs would include a

Which of the following is a product cost?

Dentlinger Company uses a job-order cost system and had the following data available for 20X2. -The journal entry to record the factory overhead costs incurred would include a

Dentlinger Company uses a job-order cost system and had the following data available for 20X2. -The journal entry to record the materials placed into production would include a

The proration method of disposing of overhead variances prorates the variance among three accounts including Direct-Materials Inventory, WIP Inventory and Finished Goods Inventory.

Two extremes of product costing are job-order costing and normal costing.

The overhead assigned to production using a predetermined overhead rate.

Budgeted factory overhead rates are calculated as

The proration method of disposing of overhead variances assigns the variance in proportion to the sizes of the ending account balances to

Which of the following industries is most likely to NOT use a job-order costing system?

A rate that is calculated by dividing budgeted overhead by budgeted cost-driver activity.

Dentlinger Company uses a job-order cost system and had the following data available for 20X2. -The ending inventory of work in process is

Dentlinger Company uses a job-order cost system and had the following data available for 20X2. -The ending inventory of finished goods is

Dentlinger Company uses a job-order cost system and had the following data available for 20X2. -The journal entry to record the cost of goods completed would include a

The entry to record the requisition of direct materials would include a debit to WIP Inventory.

Labour time tickets indicate the direct labour time worked by an individual on each job.

Management Accounting and Management Decisions

Cost Behaviour and Cost-Volume Relationships

Measurement of Cost Behaviour

Cost Management Systems

Cost Allocation and Activity-Based Costing Systems

Process-Costing Systems

Relevant Information and Decision Making: Marketing Decisions

Relevant Information and Decision Making: Production Decisions

Capital Budgeting Decisions

The Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems, the Balanced Scorecard, and Responsibility Accounting

Management Control in Decentralized Organizations

Filters