Question 1

In the immediate write-off approach, underapplied overhead is regarded as

Accepted Answer

A)  a reduction in current income. 
B)  an addition to the cost of inventory. 
C)  a decrease in cost of goods sold. 
D)  a decrease in the cost of inventory. 
A)  a reduction in current income. 
B)  an addition to the cost of inventory. 
C)  a decrease in cost of goods sold. 
D)  a decrease in the cost of inventory.

Question 2

Witty, Inc. uses a job-order cost system and had the following data available for 20X1.
  
-The journal entry to record the materials placed into production would include a

Accepted Answer

A)  credit to Direct-Materials Inventory for $82,000. 
B)  debit to Direct-Materials Inventory for $148,000. 
C)  credit to WIP Inventory for $82,000. 
D)  debit to WIP Inventory for $148,000. 
A)  credit to Direct-Materials Inventory for $82,000. 
B)  debit to Direct-Materials Inventory for $148,000. 
C)  credit to WIP Inventory for $82,000. 
D)  debit to WIP Inventory for $148,000.

Question 3

Harnack Company had the following information:
   Budgeted cost driver activity levels:
   Actual cost driver activity levels:
  
-If Job 400 used 230 production setups, the overhead applied using production setups as the cost driver should be

Accepted Answer

A)  $6,900. 
B)  $7,248. 
C)  $7,360. 
D)  $7,730. 
A)  $6,900. 
B)  $7,248. 
C)  $7,360. 
D)  $7,730.

Question 4

A variance that results when applied overhead is greater than the actual overhead cost incurred.

Accepted Answer

Overapplie

Question 5

Use the following information to answer the following item(s).
  
-The budgeted factory overhead rate for applying manufacturing overhead would be

Accepted Answer

A)  $7.62. 
B)  $8.00. 
C)  $8.20. 
D)  $8.61. 
A)  $7.62. 
B)  $8.00. 
C)  $8.20. 
D)  $8.61.

Question 6

Harnack Company had the following information:
   Budgeted cost driver activity levels:
   Actual cost driver activity levels:
  
-If Job 300 used 2,558 machine hours, the overhead applied using machine hours as the cost driver should be

Accepted Answer

A)  $20,490. 
B)  $20,464. 
C)  $21,846. 
D)  $19,185. 
A)  $20,490. 
B)  $20,464. 
C)  $21,846. 
D)  $19,185.

Question 7

Job-order costing can be used only in manufacturing environments.

Accepted Answer

A) True 
 B)False

Question 8

If the overhead control account has a credit balance at the end of the period,

Accepted Answer

A)  overhead is overapplied and the difference should be credited to the proper accounts. 
B)  overhead is overapplied and the difference should be debited to the proper accounts. 
C)  overhead is underapplied and the difference should be debited to the proper accounts. 
D)  overhead is underapplied and the difference should be credited to the proper accounts. 
A)  overhead is overapplied and the difference should be credited to the proper accounts. 
B)  overhead is overapplied and the difference should be debited to the proper accounts. 
C)  overhead is underapplied and the difference should be debited to the proper accounts. 
D)  overhead is underapplied and the difference should be credited to the proper accounts.

Question 9

Materials inventory, work in process, and cost of goods sold would appear in the asset section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements regarding process costing is FALSE?

Accepted Answer

A)  Process costing deals with great masses of like units. 
B)  Process costing is an averaging process. 
C)  In process costing the measure of production is small, whereas in job-order costing the measure of production is large. 
D)  Process costing is one of the extremes of product costing. 
A)  Process costing deals with great masses of like units. 
B)  Process costing is an averaging process. 
C)  In process costing the measure of production is small, whereas in job-order costing the measure of production is large. 
D)  Process costing is one of the extremes of product costing.

Question 11

If the overhead control account has a debit balance at the end of the period,

Accepted Answer

A)  overhead is overapplied and the difference should be credited to the proper accounts. 
B)  overhead is overapplied and the difference should be debited to the proper accounts. 
C)  overhead is underapplied and the difference should be debited to the proper accounts. 
D)  overhead is underapplied and the difference should be credited to the proper accounts. 
A)  overhead is overapplied and the difference should be credited to the proper accounts. 
B)  overhead is overapplied and the difference should be debited to the proper accounts. 
C)  overhead is underapplied and the difference should be debited to the proper accounts. 
D)  overhead is underapplied and the difference should be credited to the proper accounts.

Question 12

Dentlinger Company uses a job-order cost system and had the following data available for 20X2.
  
-To compute the budgeted factory-overhead rate, the budgeted cost driver is divided into the

Accepted Answer

A)  actual factory overhead. 
B)  budgeted work-in-process. 
C)  estimated cost of goods sold. 
D)  budgeted total overhead. 
A)  actual factory overhead. 
B)  budgeted work-in-process. 
C)  estimated cost of goods sold. 
D)  budgeted total overhead.

Question 13

Dentlinger Company uses a job-order cost system and had the following data available for 20X2.
  
-To apply the budgeted overhead to a job, the budgeted overhead rate is multiplied by the

Accepted Answer

A)  actual cost-driver data. 
B)  budgeted cost-driver data. 
C)  actual factory-overhead costs. 
D)  estimated factory-overhead costs. 
A)  actual cost-driver data. 
B)  budgeted cost-driver data. 
C)  actual factory-overhead costs. 
D)  estimated factory-overhead costs.

Question 14

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

Accepted Answer

A)  $184,000. 
B)  $348,000. 
C)  $164,000. 
D)  $216,000. 
A)  $184,000. 
B)  $348,000. 
C)  $164,000. 
D)  $216,000.

Question 15

The following information was gathered for Larsen Company for the year ended December 31, 20X1.
  
-Assume that direct-labour hours is the cost driver. What is the amount of factory overhead applied?

Accepted Answer

A)  $73,625 
B)  $76,950 
C)  $71,765 
D)  $74,990 
A)  $73,625 
B)  $76,950 
C)  $71,765 
D)  $74,990

Question 16

The work-in-process account will have a balance only if there is unfinished work in the factory.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

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

Question 18

A department that is equipment intensive would most likely use a budgeted factory overhead rate based on which of the following cost drivers:

Accepted Answer

A)  machine hours 
B)  direct labour hours 
C)  direct labour cost 
D)  units of direct labour used 
A)  machine hours 
B)  direct labour hours 
C)  direct labour cost 
D)  units of direct labour used

Question 19

A unique individual product would be better accounted for using a

Accepted Answer

A)  process costing system. 
B)  period costing system. 
C)  product costing system. 
D)  job-order costing system. 
A)  process costing system. 
B)  period costing system. 
C)  product costing system. 
D)  job-order costing system.

Question 20

Use the following information to answer the following item(s).
  
-The amount of the overhead variance would be

Accepted Answer

A)  $24,400 overapplied. 
B)  $24,400 underapplied. 
C)  $8,400 overapplied. 
D)  $8,400 underapplied. 
A)  $24,400 overapplied. 
B)  $24,400 underapplied. 
C)  $8,400 overapplied. 
D)  $8,400 underapplied.

In the immediate write-off approach, underapplied overhead is regarded as

Witty, Inc. uses a job-order cost system and had the following data available for 20X1. -The journal entry to record the materials placed into production would include a

Harnack Company had the following information: Budgeted cost driver activity levels: Actual cost driver activity levels: -If Job 400 used 230 production setups, the overhead applied using production setups as the cost driver should be

A variance that results when applied overhead is greater than the actual overhead cost incurred.

Use the following information to answer the following item(s). -The budgeted factory overhead rate for applying manufacturing overhead would be

Harnack Company had the following information: Budgeted cost driver activity levels: Actual cost driver activity levels: -If Job 300 used 2,558 machine hours, the overhead applied using machine hours as the cost driver should be

Job-order costing can be used only in manufacturing environments.

If the overhead control account has a credit balance at the end of the period,

Materials inventory, work in process, and cost of goods sold would appear in the asset section of the balance sheet.

Which of the following statements regarding process costing is FALSE?

If the overhead control account has a debit balance at the end of the period,

Dentlinger Company uses a job-order cost system and had the following data available for 20X2. -To compute the budgeted factory-overhead rate, the budgeted cost driver is divided into the

Dentlinger Company uses a job-order cost system and had the following data available for 20X2. -To apply the budgeted overhead to a job, the budgeted overhead rate is multiplied by the

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

The following information was gathered for Larsen Company for the year ended December 31, 20X1. -Assume that direct-labour hours is the cost driver. What is the amount of factory overhead applied?

The work-in-process account will have a balance only if there is unfinished work in the factory.

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

A department that is equipment intensive would most likely use a budgeted factory overhead rate based on which of the following cost drivers:

A unique individual product would be better accounted for using a

Use the following information to answer the following item(s). -The amount of the overhead variance would be

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

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Exam 6: Job-Costing Systems

In the immediate write-off approach, underapplied overhead is regarded as

Witty, Inc. uses a job-order cost system and had the following data available for 20X1. -The journal entry to record the materials placed into production would include a

Harnack Company had the following information: Budgeted cost driver activity levels: Actual cost driver activity levels: -If Job 400 used 230 production setups, the overhead applied using production setups as the cost driver should be

A variance that results when applied overhead is greater than the actual overhead cost incurred.

Use the following information to answer the following item(s). -The budgeted factory overhead rate for applying manufacturing overhead would be

Harnack Company had the following information: Budgeted cost driver activity levels: Actual cost driver activity levels: -If Job 300 used 2,558 machine hours, the overhead applied using machine hours as the cost driver should be

Job-order costing can be used only in manufacturing environments.

If the overhead control account has a credit balance at the end of the period,

Materials inventory, work in process, and cost of goods sold would appear in the asset section of the balance sheet.

Which of the following statements regarding process costing is FALSE?

If the overhead control account has a debit balance at the end of the period,

Dentlinger Company uses a job-order cost system and had the following data available for 20X2. -To compute the budgeted factory-overhead rate, the budgeted cost driver is divided into the

Dentlinger Company uses a job-order cost system and had the following data available for 20X2. -To apply the budgeted overhead to a job, the budgeted overhead rate is multiplied by the

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

The following information was gathered for Larsen Company for the year ended December 31, 20X1. -Assume that direct-labour hours is the cost driver. What is the amount of factory overhead applied?

The work-in-process account will have a balance only if there is unfinished work in the factory.

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

A department that is equipment intensive would most likely use a budgeted factory overhead rate based on which of the following cost drivers:

A unique individual product would be better accounted for using a

Use the following information to answer the following item(s). -The amount of the overhead variance would be

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

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