Exam 4: Job Costing

Jordan Company has two departments, X and Y. Overhead is applied based on direct labor cost in Department X and machine-hours in Department Y. The following additional information is available: Required: a. Compute the budgeted factory overhead rate for Department X. b. Compute the budgeted factory overhead rate for Department Y. c. What is the total overhead cost of Job 10? d. If Job 10 consists of 50 units of product, what is the unit cost of this job?

A ________ links an indirect cost to a cost object.

Overallocated indirect costs occur when the allocated amount of indirect costs is greater than the amount incurred for that period.

Give three examples of costs that can be considered indirect for a product and direct for a department.

Managers and accountants collect most of the cost information that goes into their systems through:

Answer the following questions using the information below: Joni's Kitty Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of the Toy Mouse product. Estimates for this order include: Direct materials $40,000; 500 direct manufacturing labor-hours at $20 per hour; and a 20% markup rate on total manufacturing costs. -Estimated total product costs for this special order equal:

A cost object is anything for which a measurement of costs is desired.

Process costing is used to assign manufacturing costs to unique batches of a product.

Answer the following questions using the information below: Philadelphia Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $15 per direct labor-hour. The following data are obtained from the accounting records for June 2010: -For June 2010, manufacturing overhead was:

Indirect manufacturing costs should be allocated equally to each job.

The following information was gathered for Jasmine Company for the year ended December 31, 2010 Assume that direct labor-hours are the cost-allocation base. Required: a. Compute the budgeted factory overhead rate. b. Compute the factory overhead applied. c. Compute the amount of over/underapplied overhead.

Answer the following questions using the information below: For 2010, Jake's Dog Supply Manufacturing uses machine-hours as the only overhead cost-allocation base. The accounting records contain the following information: -Using normal costing, the amount of manufacturing overhead costs allocated to jobs during 2010 is:

Answer the following questions using the information below: For 2010, Jake's Dog Supply Manufacturing uses machine-hours as the only overhead cost-allocation base. The accounting records contain the following information: -Using actual costing, the amount of manufacturing overhead costs allocated to jobs during 2010 is:

When using a normal costing system, manufacturing overhead is allocated using the ________ manufacturing overhead rate and the ________ quantity of the allocation base.

While costs are measured for individual jobs in a job cost system, they are measured for individual process stages in a process costing system.

The overhead accounts are closed or become zero at the end of each year.

All of the following increase (are debited to)the Work-in-Process Control account EXCEPT:

Problems with accurate costing occur when:

All of the following items are debited to Work-in-Process EXCEPT:

Answer the following questions using the information below: Gibson Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winfield High School band jacket job. -For Gibson Manufacturing, what is the annual manufacturing overhead cost-allocation rate?