Question 1

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

Accepted Answer

A) direct materials 
B) direct labor 
C) manufacturing overhead costs 
D) total costs 
A) direct materials 
B) direct labor 
C) manufacturing overhead costs 
D) total costs

Question 2

Which of the following companies will use a process costing system?

Accepted Answer

A) an oil refining company 
B) a manufacturer of ships 
C) a custom kitchen cabinet company 
D) an advertising firm 
A) an oil refining company 
B) a manufacturer of ships 
C) a custom kitchen cabinet company 
D) an advertising firm

Question 3

When goods are finished,the Finished Goods Control account is debited while the Work-in-Process Control account is credited.

Accepted Answer

A) True 
 B)False

Question 4

When a job is complete ________.

Accepted Answer

A) actual indirect manufacturing labor is excluded from the total cost of the job 
B) Finished Goods Control is debited 
C) the cost of the job is transferred to Manufacturing Overhead Control 
D) it is reduced from Manufacturing Overhead Control account 
A) actual indirect manufacturing labor is excluded from the total cost of the job 
B) Finished Goods Control is debited 
C) the cost of the job is transferred to Manufacturing Overhead Control 
D) it is reduced from Manufacturing Overhead Control account

Question 5

Place the following steps in the order suggested by the seven steps used to assign costs to individual jobs:

Accepted Answer

A) ACDB 
B) CADB 
C) BACD 
D) DCAB 
A) ACDB 
B) CADB 
C) BACD 
D) DCAB

Question 6

Franklin Inc.manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour.The following data are obtained from the accounting records for June 2018:
 
For June 2018,manufacturing overhead is ________.

Accepted Answer

A) overallocated by $7,300 
B) underallocated by $20,700 
C) overallocated by $20,700 
D) underallocated by $7,300 
A) overallocated by $7,300 
B) underallocated by $20,700 
C) overallocated by $20,700 
D) underallocated by $7,300

Question 7

The budgeted indirect-cost rate for each cost pool is computed as ________.

Accepted Answer

A) budgeted annual indirect costs divided by budgeted annual quantity of cost allocation base 
B) budgeted annual quantity of cost allocation base divided by budgeted annual indirect costs 
C) actual annual indirect costs divided by budgeted annual quantity of cost allocation base 
D) budgeted annual indirect costs divided by budgeted actual quantity of cost allocation base 
A) budgeted annual indirect costs divided by budgeted annual quantity of cost allocation base 
B) budgeted annual quantity of cost allocation base divided by budgeted annual indirect costs 
C) actual annual indirect costs divided by budgeted annual quantity of cost allocation base 
D) budgeted annual indirect costs divided by budgeted actual quantity of cost allocation base

Question 8

Proration is the spreading of underallocated or overallocated overhead among ending work in process,finished goods,and costs of goods sold.

Accepted Answer

A) True 
 B)False

Question 9

A company has $25,000 of depreciation on plant assets and paid $12,000 for repairs also to plant assets.Which of the following journal entries would be required?

Accepted Answer

The answer of A company has $25,000 of depreciation on...

Question 10

Benny Industries allocates manufacturing overhead at a predetermined rate of 160% of direct labor cost.Any overallocated or underallocated overhead is closed to the cost of goods sold at the end of the month.Below is information on job 205 that was in process at the end of the month of October
Direct materials $4,000
Direct labor $3,000
Allocated manufacturing overhead $4,800
Jobs 206,207,and 208 were started in November.Direct materials that were used in November were $26,000 and direct labor costs were $21,000.For the month of November,actual manufacturing overhead was $32,000.The only job still in process on the last day of November was job 104 with the following costs: $3,000 for direct materials and $1,500 for direct labor.
Required:
Calculate the cost of goods manufacturered for November.

Accepted Answer

Beginning work-in-process $11,800 (Job 2

Question 11

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

The ending balance of finished goods inventory is ________.

Accepted Answer

A) $53,000 
B) $40,000 
C) $93,000 
D) $288,000 
A) $53,000 
B) $40,000 
C) $93,000 
D) $288,000

Question 12

A ________ is anything for which a measurement of costs is desired.

Accepted Answer

A) cost-allocation base 
B) cost pool 
C) cost object 
D) cost-application base 
A) cost-allocation base 
B) cost pool 
C) cost object 
D) cost-application base

Question 13

In some service organizations,a variation of normal costing is used to provide timely information during the progression of the year,using budgeted direct labor costs and allocated budgeted overhead.

Accepted Answer

A) True 
 B)False

Question 14

Smith and Jones CPA firm employs 12 accountants 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 2018:
 
What are the actual direct-cost rate and the actual indirect-cost rate,respectively,per professional labor-hour?

Accepted Answer

A) $63.60;$11.60 
B) $70.00;$14.50 
C) $79.50;$12.40 
D) $63.60;$12.40 
A) $63.60;$11.60 
B) $70.00;$14.50 
C) $79.50;$12.40 
D) $63.60;$12.40

Question 15

Elite Stationary employs 20 full-time employees and 10 trainees.Direct and indirect costs are applied on a professional labor-hour basis that includes both employee and trainee hours.Following is information for 2018:
 
How much should a client be billed in a normal costing system when 1,000 professional labor-hours are used?

Accepted Answer

A) $215,000 
B) $125,000 
C) $130,000 
D) $145,000 
A) $215,000 
B) $125,000 
C) $130,000 
D) $145,000

Question 16

Overhead costs allocated each month are expected to equal actual overhead costs incurred each month.

Accepted Answer

A) True 
 B)False

Question 17

A job-cost sheet details the ________.

Accepted Answer

A) direct materials purchased and paid 
B) direct labor costs incurred 
C) indirect labor costs incurred 
D) actual indirect overhead costs incurred 
A) direct materials purchased and paid 
B) direct labor costs incurred 
C) indirect labor costs incurred 
D) actual indirect overhead costs incurred

Question 18

Hill Manufacturing uses departmental cost driver rates to apply manufacturing overhead costs to products.Manufacturing overhead costs are applied 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 2018,the following estimates were provided for the coming year:
   
The accounting records of the company show the following data for Job #846:
   
Required:
a.Compute the manufacturing overhead allocation rate for each department.
b.Compute the total cost of Job #846.
c.Provide possible reasons why Hill Manufacturing uses two different cost allocation rates.

Accepted Answer

a.Machining Department cost-allocation r

Question 19

Chief 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 Somerset High School Science Olympiad Jacket job.
   
Required:
a.For Chief Manufacturing,determine the annual manufacturing overhead cost-allocation rate.
b.Determine the amount of manufacturing overhead costs allocated to the Somerset High School job.
c.Determine the estimated total manufacturing costs for the Somerset High School job.

Accepted Answer

@#IMG-DLM&_TB5540_00_TB5540_00 b.$400 es

Question 20

Which of the following statements about actual costing is true?

Accepted Answer

A) Manufacturing costs of a job are available earlier under actual costing. 
B) Corrective actions can be implemented sooner under actual costing. 
C) Actual costing uses budgeted indirect-cost rates calculated annually. 
D) Actual costing uses actual indirect-cost rates calculated annually. 
A) Manufacturing costs of a job are available earlier under actual costing. 
B) Corrective actions can be implemented sooner under actual costing. 
C) Actual costing uses budgeted indirect-cost rates calculated annually. 
D) Actual costing uses actual indirect-cost rates calculated annually.

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

Which of the following companies will use a process costing system?

When goods are finished,the Finished Goods Control account is debited while the Work-in-Process Control account is credited.

When a job is complete ________.

Place the following steps in the order suggested by the seven steps used to assign costs to individual jobs:

Franklin Inc.manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour.The following data are obtained from the accounting records for June 2018: For June 2018,manufacturing overhead is ________.

The budgeted indirect-cost rate for each cost pool is computed as ________.

Proration is the spreading of underallocated or overallocated overhead among ending work in process,finished goods,and costs of goods sold.

A company has $25,000 of depreciation on plant assets and paid $12,000 for repairs also to plant assets.Which of the following journal entries would be required?

River Falls Manufacturing uses a normal cost system and had the following data available for 2018: The ending balance of finished goods inventory is ________.

A ________ is anything for which a measurement of costs is desired.

In some service organizations,a variation of normal costing is used to provide timely information during the progression of the year,using budgeted direct labor costs and allocated budgeted overhead.

Overhead costs allocated each month are expected to equal actual overhead costs incurred each month.

A job-cost sheet details the ________.

Which of the following statements about actual costing is true?

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

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

Which of the following companies will use a process costing system?

When goods are finished,the Finished Goods Control account is debited while the Work-in-Process Control account is credited.

When a job is complete ________.

Place the following steps in the order suggested by the seven steps used to assign costs to individual jobs:

Franklin Inc.manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour.The following data are obtained from the accounting records for June 2018: For June 2018,manufacturing overhead is ________.

The budgeted indirect-cost rate for each cost pool is computed as ________.

Proration is the spreading of underallocated or overallocated overhead among ending work in process,finished goods,and costs of goods sold.

A company has $25,000 of depreciation on plant assets and paid $12,000 for repairs also to plant assets.Which of the following journal entries would be required?

River Falls Manufacturing uses a normal cost system and had the following data available for 2018: The ending balance of finished goods inventory is ________.

A ________ is anything for which a measurement of costs is desired.

In some service organizations,a variation of normal costing is used to provide timely information during the progression of the year,using budgeted direct labor costs and allocated budgeted overhead.

Overhead costs allocated each month are expected to equal actual overhead costs incurred each month.

A job-cost sheet details the ________.

Which of the following statements about actual costing is true?

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