Question 1

An increase in direct labor cost per unit ________.

Accepted Answer

A) increases the fixed cost 
B) increases profits 
C) increases the variable cost 
D) increases overhead costs 
A) increases the fixed cost 
B) increases profits 
C) increases the variable cost 
D) increases overhead costs

Question 2

The difference between actual costing and normal costing is ________.

Accepted Answer

A) normal costing uses actual quantities of direct-costs 
B) actual costing uses actual quantities of direct-costs 
C) normal costing uses budgeted indirect-costs 
D) actual costing uses actual quantities of cost-allocation bases 
A) normal costing uses actual quantities of direct-costs 
B) actual costing uses actual quantities of direct-costs 
C) normal costing uses budgeted indirect-costs 
D) actual costing uses actual quantities of cost-allocation bases

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) adjusted allocation-rate 
B) proration approach 
C) write-off to cost of goods sold approach 
D) weighted-average cost approach 
A) adjusted allocation-rate 
B) proration approach 
C) write-off to cost of goods sold approach 
D) weighted-average cost approach

Question 5

The Robinson Corporation manufactures automobile parts.During the year,the company sold $5,600,000 of parts that had a cost of $3,200,000.At year end,these are the balances for cost of goods sold and its manufacturing overhead accounts:
Cost of goods sold $3,200,000
Manufacturing overhead allocated $1,400,000
Manufacturing overhead control $1,495,000
What would be the correct journal entry to close out the overhead accounts assuming that the write-of to cost of goods sold approach is used?

Accepted Answer

The answer of The Robinson Corporation manufactures automobile parts.During the...

Question 6

River Falls Manufacturing uses a normal cost system and had the following data available for 2018:

The journal entry to record the materials placed into production would include a ________.

Accepted Answer

A) credit to Direct Materials Inventory for $84,000 
B) debit to Direct Materials Inventory for $150,000 
C) credit to WIP Inventory for $84,000 
D) debit to WIP Inventory for $150,000 
A) credit to Direct Materials Inventory for $84,000 
B) debit to Direct Materials Inventory for $150,000 
C) credit to WIP Inventory for $84,000 
D) debit to WIP Inventory for $150,000

Question 7

A manufacturer utilizes three separate indirect cost pools.Which of the following is true?

Accepted Answer

A) Each indirect cost pool utilizes a separate cost-allocation rate 
B) Each indirect cost pool is a subset of total direct costs 
C) Each indirect cost pool relates to multiple cost centers 
D) Each indirect cost pool utilizes the same cost-allocation rate for all costs incurred 
A) Each indirect cost pool utilizes a separate cost-allocation rate 
B) Each indirect cost pool is a subset of total direct costs 
C) Each indirect cost pool relates to multiple cost centers 
D) Each indirect cost pool utilizes the same cost-allocation rate for all costs incurred

Question 8

Which of the following increases (are debited to)the Work-in-Process Control account?

Accepted Answer

A) actual plant insurance costs 
B) customer services costs 
C) marketing expenses 
D) direct manufacturing labor costs 
A) actual plant insurance costs 
B) customer services costs 
C) marketing expenses 
D) direct manufacturing labor costs

Question 9

Cost objects may be jobs,products,or customers.

Accepted Answer

A) True 
 B)False

Question 10

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.
For Department B,the manufacturing overhead allocation rate is ________.

Accepted Answer

A) 50.0% 
B) 90.0 % 
C) 200.0% 
D) 250.0% 
A) 50.0% 
B) 90.0 % 
C) 200.0% 
D) 250.0%

Question 11

The adjusted-allocation rate approach offers the benefit of a costing system that provides overhead cost data during the year so that pricing,budgeting,and interim reporting can occur and a year-end adjustment to manufacturing overhead allocations to individual jobs that are better aligned with actual manufacturing overhead costs that are known at year-end.

Accepted Answer

A) True 
 B)False

Question 12

Job costing is ________.

Accepted Answer

A) used by businesses to price identical products 
B) used by businesses to price unique products for different jobs 
C) used to calculate equivalent units 
D) used to calculate the percentage of work completed 
A) used by businesses to price identical products 
B) used by businesses to price unique products for different jobs 
C) used to calculate equivalent units 
D) used to calculate the percentage of work completed

Question 13

Explain how the following statement be true: Often the manufacturing overhead control account (debit)does not equal the manufacturing overhead allocated account (credit).

Accepted Answer

If these accounts do not equal,then over

Question 14

Describe job-costing and process-costing systems.Explain when it would be appropriate to use each.

Accepted Answer

Job costing accumulates costs for differ

Question 15

Assigning direct costs to a cost object is called ________.

Accepted Answer

A) cost allocation 
B) cost assignment 
C) cost pooling 
D) cost tracing 
A) cost allocation 
B) cost assignment 
C) cost pooling 
D) cost tracing

Question 16

The advantage of using normal costing instead of actual costing is ________.

Accepted Answer

A) indirect costs are assigned at the end of the year when they are known 
B) the job cost is more accurate under normal costing 
C) indirect costs are assigned to a job on a timely basis 
D) normal costing provides a higher gross profit margin 
A) indirect costs are assigned at the end of the year when they are known 
B) the job cost is more accurate under normal costing 
C) indirect costs are assigned to a job on a timely basis 
D) normal costing provides a higher gross profit margin

Question 17

Lancelot 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 Case High School band jacket job.
 
What is the bid price for the Case High School job if the company uses a 40% markup of total manufacturing costs?

Accepted Answer

A) $3,360 
B) $1,122 
C) $960 
D) $3,927 
A) $3,360 
B) $1,122 
C) $960 
D) $3,927

Question 18

Actual costing helps managers get information earlier and take corrective measures to improve labor efficiency.

Accepted Answer

A) True 
 B)False

Question 19

Normal costing is a method of job costing that allocates an indirect cost based on the actual indirect-cost rate times the actual quantity of the cost-allocation base.

Accepted Answer

A) True 
 B)False

Question 20

Franklin Inc.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 2018:
 
The amount of manufacturing overhead allocated to all jobs during June 2018 totals ________.

Accepted Answer

A) $91,500 
B) $60,000 
C) $76,000 
D) $60,500 
A) $91,500 
B) $60,000 
C) $76,000 
D) $60,500

An increase in direct labor cost per unit ________.

The difference between actual costing and normal costing is ________.

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

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

River Falls Manufacturing uses a normal cost system and had the following data available for 2018: The journal entry to record the materials placed into production would include a ________.

A manufacturer utilizes three separate indirect cost pools.Which of the following is true?

Which of the following increases (are debited to)the Work-in-Process Control account?

Cost objects may be jobs,products,or customers.

Job costing is ________.

Explain how the following statement be true: Often the manufacturing overhead control account (debit)does not equal the manufacturing overhead allocated account (credit).

Describe job-costing and process-costing systems.Explain when it would be appropriate to use each.

Assigning direct costs to a cost object is called ________.

The advantage of using normal costing instead of actual costing is ________.

Actual costing helps managers get information earlier and take corrective measures to improve labor efficiency.

Normal costing is a method of job costing that allocates an indirect cost based on the actual indirect-cost rate times the actual quantity of the cost-allocation base.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets,direct-Cost Variances,and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy,balanced Scorecard,and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

Filters

Exam 4: Job Costing

An increase in direct labor cost per unit ________.

The difference between actual costing and normal costing is ________.

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

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

River Falls Manufacturing uses a normal cost system and had the following data available for 2018: The journal entry to record the materials placed into production would include a ________.

A manufacturer utilizes three separate indirect cost pools.Which of the following is true?

Which of the following increases (are debited to)the Work-in-Process Control account?

Cost objects may be jobs,products,or customers.

Job costing is ________.

Explain how the following statement be true: Often the manufacturing overhead control account (debit)does not equal the manufacturing overhead allocated account (credit).

Describe job-costing and process-costing systems.Explain when it would be appropriate to use each.

Assigning direct costs to a cost object is called ________.

The advantage of using normal costing instead of actual costing is ________.

Actual costing helps managers get information earlier and take corrective measures to improve labor efficiency.

Normal costing is a method of job costing that allocates an indirect cost based on the actual indirect-cost rate times the actual quantity of the cost-allocation base.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets,direct-Cost Variances,and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy,balanced Scorecard,and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

Filters