Exam 4: Job Costing

The actual indirect-cost rate is calculated by dividing actual total indirect costs by the actual total quantity of the cost-allocation base.

Explain how a budgeted indirect-cost rate is determined.

Answer the following questions using the information below: Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 20X3: -How much should the client be billed in an actual costing system if 200 professional labor-hours are used?

An example of a denominator reason for calculating annual indirect-cost rates includes:

The difference between actual costing and normal costing is:

The basic source document for direct manufacturing labor is the:

Cowley County Hospital uses a job-costing system for all patients who have surgery. In March, the pre-operating room (PRE-OP)and operating room (OR)had budgeted allocation bases of 4,000 nursing hours and 2,000 nursing hours, respectively. The budgeted nursing overhead charges for each department for the month were $168,000 and $132,000, respectively. The hospital floor for surgery patients had budgeted overhead costs of $1,200,000 and 15,000 nursing hours for the month. For patient Fred Adams, actual hours incurred were eight and four hours, respectively, in the PRE-OP and OR rooms. He was in the hospital for 4 days (96 hours). Other costs related to Adams were: The hospital uses a budgeted overhead rate for applying overhead to patient stays. Required: What is the total cost of the stay of patient Fred Adams?

Normal costing is a costing system that traces direct costs to a cost object by using the actual direct-cost rates times the actual quantities of the direct-cost inputs.

Answer the following questions using the information below: Because the Abernathy Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200,000)was different from the actual amount incurred ($225,000). -What is the journal entry used to write off the difference between allocated and actual overhead directly to cost of goods sold?

All of the following are general ledger accounts EXCEPT:

The Materials Control account is increased when:

For a given job the direct costs associated with the job are:

Which of the following statements regarding manufacturing overhead allocation is FALSE?

The law firm of Smith & Jones has a staff of 30 lawyers and administrative staff. Budgeted total costs of the firm total $4,000,000 of which $2,500,000 is direct-labor costs. Assuming that the remaining costs are indirect and direct-labor cost is the allocation base, calculate the budgeted indirect cost rate.

Constanza Company has the following balances as of the year ended December 31, 2010 Additional information is as follows: Required: a. Compute beginning direct materials inventory. b. Compute beginning WIP inventory. c. Compute beginning finished goods inventory. d. Compute actual factory overhead incurred.

Answer the following questions using the information below: Apple Valley Corporation uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are: The actual material and labor costs charged to Job #432 were as follows: Apple Valley applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year. -Manufacturing costs estimated for Job #432 total:

The product cost reported as inventoriable costs to shareholders may differ from product costs reported for government contracting.

The advantage of using normal costing instead of actual costing is:

The ________ approach adjusts individual job-cost records to account for underallocated or overallocated overhead.