Exam 4: Job Costing

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 2014: Budget Actual Indirect costs \ 270,000 \ 300,000 Annual salary of each attorney \ 100,000 \ 110,000 Annual salary of each paraprofessional \ 29,000 \ 30,000 Total professional labor-hours 50,000 60,000 -How much should the client be billed in an actual costing system if 200 professional labor-hours are used?

Explain the procedure how overhead indirect costs become a part of work-in process inventory.

In a job-costing system,a manufacturing firm typically uses an indirect-cost rate to estimate the ________ allocated to a job.

If indirect-cost rates were based on actual short-term usage,periods of lower demand would result in lower costs per unit.

The sum of all entries in underlying subsidiary ledgers equals the total amount in the corresponding general ledger control accounts.

A budgeted indirect-cost rate is computed for each cost pool using budgeted indirect costs and the budgeted quantity of the cost-allocation base.

Product costing information will include ________.

At the end of the year,the direct costs traced to jobs using the budgeted rates will equal actual direct costs.

In a job-cost system,each indirect-cost pool is clubbed under one account in the general ledger.

Answer the following questions using the information below: Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 20X3, the following estimates were provided for the coming year: Machining Assembly Direct labor-hours 30,000 60,000 Machine-hours 80,000 20,000 Direct labor cost \ 500,000 \ 900,000 Manufacturing overhead costs \ 420,000 \ 240,000 The accounting records of the company show the following data for Job #316: Machining Assembly Direct labor-hours 120 70 Machine-hours 60 5 Direct material cost \ 300 \ 200 Direct labor cost \ 100 \ 400 -What are the total manufacturing costs of Job #316?

Answer the following questions using the information below: Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 20X3, the following estimates were provided for the coming year: Machining Assembly Direct labor-hours 30,000 60,000 Machine-hours 80,000 20,000 Direct labor cost \ 500,000 \ 900,000 Manufacturing overhead costs \ 420,000 \ 240,000 The accounting records of the company show the following data for Job #316: Machining Assembly Direct labor-hours 120 70 Machine-hours 60 5 Direct material cost \ 300 \ 200 Direct labor cost \ 100 \ 400 -What amount of manufacturing overhead costs will be allocated to Job #316?

Actual prices paid for materials usually serve as actual direct-cost rates for charging material costs to jobs.

Actual costing is a costing system that traces direct costs to a cost object by ________.

Job costing information is used ________.

The budgeted indirect cost rate is actual indirect costs divided by budgeted quantity of the cost allocation base.

Which of the following statements about normal costing is true?

In a normal costing system,the Manufacturing Overhead Control account ________.

The Salaries Payable Control account has underlying subsidiary ledgers.

Direct costs are allocated to the cost object using a cost-allocation method.

The budgeted indirect-cost rate is calculated ________.