Question 1

Actual (rather than allocated)manufacturing overhead costs are first recorded in the ________.

Accepted Answer

A) Work-in-Process Control account 
B) Finished Goods Control account 
C) Manufacturing Overhead Control account 
D) Cost of Goods Sold account 
A) Work-in-Process Control account 
B) Finished Goods Control account 
C) Manufacturing Overhead Control account 
D) Cost of Goods Sold account

Question 2

Global Manufacturing Inc.uses normal costing during the year to allocate manufacturing overhead to jobs in a job costing system.At year end,it uses the adjusted allocation rate approach to account for underallocated or overallocated overhead.During 2018,Global's manufacturing overhead was underallocated by 10%.Job 117 had the following costs:
Direct materials $1,600
Direct labor $3,400
Manufacturing overhead allocated $2,000
Which of the following would be the after adjustment cost of Job 117?

Accepted Answer

A) $7,340 
B) $7,200 
C) $7,700 
D) $6,300 
A) $7,340 
B) $7,200 
C) $7,700 
D) $6,300

Question 3

What is the difference between an actual cost system and a normal cost system?

Accepted Answer

An actual cost system is one that traces

Question 4

An example of a numerator reason for calculating annual indirect-cost rates includes ________.

Accepted Answer

A) fewer production workdays in a month 
B) cost of raw materials purchased 
C) higher snow-removal costs during the winter 
D) the number of units produced 
A) fewer production workdays in a month 
B) cost of raw materials purchased 
C) higher snow-removal costs during the winter 
D) the number of units produced

Question 5

The budgeted indirect-cost rate is calculated ________.

Accepted Answer

A) at the beginning of the year 
B) during the year 
C) at the end of each quarter 
D) at the end of the year 
A) at the beginning of the year 
B) during the year 
C) at the end of each quarter 
D) at the end of the year

Question 6

Filippucci Company used a budgeted indirect-cost rate for its manufacturing operations,the amount allocated ($200,000)is different from the actual amount incurred ($225,000).
  
-Under the writeoff approach,the difference between Manufacturing Overhead Control and Manufacturing Overhead Allocated is adjusted in the ________.

Accepted Answer

A) Cost of Goods Sold account 
B) Work-in Process account 
C) Manufacturing Overhead account 
D) Miscellaneous Expenses account 
A) Cost of Goods Sold account 
B) Work-in Process account 
C) Manufacturing Overhead account 
D) Miscellaneous Expenses account

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The approach often used when dealing with small amounts of underallocated or overallocated overhead is the ________.

Accepted Answer

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

Question 9

Manton Manufacturing 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 Bear product.Estimates for this order include: Direct materials of $79,000;680 direct manufacturing labor-hours at $25 per hour;and a 25% markup rate on total manufacturing costs.Manufacturing overhead cost estimates for this special-order total ________.

Accepted Answer

A) $60,550 
B) $57,800 
C) $40,800 
D) $59,250 
A) $60,550 
B) $57,800 
C) $40,800 
D) $59,250

Question 10

Sedgwick County Hospital uses an indirect job-costing system for all patients.In June,the budgeted nursing care charges for each department and budgeted allocation bases of nursing days are as follows:
   
Patient Ms.Graves spent six days in critical care and eight days in special care during June.The remainder of the 30-day month was spent in the general care area.
Required:
a.Determine the budgeted overhead rate for each department.
b.What are the total charges to Ms.Graves if she was in the facility the entire month?

Accepted Answer

@#IMG-DLM&_TB5540_00_TB5540_00

Question 11

For normal costing,even though the indirect-cost rate is based on actual,indirect costs are allocated to products based on the normal capacity of the cost-allocation base.

Accepted Answer

A) True 
 B)False

Question 12

When an organization allocated indirect costs to departments by relative size of the budgets,it is based on the criterion of benefits received.

Accepted Answer

A) True 
 B)False

Question 13

Which account would be credited if the following labor wages were incurred in a furniture manufacturing company?

Accepted Answer

A) Work-in-Process Control,31,000 
B) Manufacturing Overhead Control,31,000 
C) Wages Payable Control,31,000 
D) Accounts Payable Control,31,000 
A) Work-in-Process Control,31,000 
B) Manufacturing Overhead Control,31,000 
C) Wages Payable Control,31,000 
D) Accounts Payable Control,31,000

Question 14

A local engineering firm is bidding on a design project for a new client.The total budgeted direct-labor costs for the firm are $400,000.The total budgeted indirect costs are $600,000.It is estimated that there are 8,000 billable hours in total.
Required:
a.What is the budgeted direct-labor cost rate?
b.What is the budgeted indirect-cost rate assuming direct-labor cost is the allocation base?
c.What should be the engineering firm bid on the project if the direct labor hours are estimated at 300 hours?

Accepted Answer

a.$400,000/8,000 = $50/hour
b.

Question 15

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 A,the manufacturing overhead allocation rate is ________.

Accepted Answer

A) 40.0% 
B) 50.0% 
C) 250.0% 
D) 90.0% 
A) 40.0% 
B) 50.0% 
C) 250.0% 
D) 90.0%

Question 16

The actual costs of all individual overhead categories are recorded in the Manufacturing Overhead Control account.

Accepted Answer

A) True 
 B)False

Question 17

The adjusted allocation approach yields the benefits of ________.

Accepted Answer

A) timeliness and convenience of normal costing 
B) allocating budgeted manufacturing overhead costs at the end of the year 
C) write-off to the cost of goods sold approach 
D) the proration approach 
A) timeliness and convenience of normal costing 
B) allocating budgeted manufacturing overhead costs at the end of the year 
C) write-off to the cost of goods sold approach 
D) the proration approach

Question 18

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.
 
For Lancelot Manufacturing,what is the annual manufacturing overhead cost-allocation rate?

Accepted Answer

A) $0.75 
B) $1.25 
C) $0.50 
D) $50.00 
A) $0.75 
B) $1.25 
C) $0.50 
D) $50.00

Question 19

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

Accepted Answer

A) using the budgeted direct cost rates times the budgeted quantities of direct-cost inputs 
B) using the actual direct costs rates times the budgeted quantities of the direct-cost inputs 
C) using the actual direct cost rates times the actual quantities of the direct-cost inputs 
D) using the budgeted direct cost rates times the actual quantities of the direct cost inputs 
A) using the budgeted direct cost rates times the budgeted quantities of direct-cost inputs 
B) using the actual direct costs rates times the budgeted quantities of the direct-cost inputs 
C) using the actual direct cost rates times the actual quantities of the direct-cost inputs 
D) using the budgeted direct cost rates times the actual quantities of the direct cost inputs

Question 20

In the service sector ________.

Accepted Answer

A) direct labor costs are always easy to trace to jobs 
B) a budgeted direct-labor cost rate may be used to apply direct labor to jobs 
C) normal costing may not be used 
D) overhead is generally applied using an actual cost-allocation rate 
A) direct labor costs are always easy to trace to jobs 
B) a budgeted direct-labor cost rate may be used to apply direct labor to jobs 
C) normal costing may not be used 
D) overhead is generally applied using an actual cost-allocation rate

Actual (rather than allocated)manufacturing overhead costs are first recorded in the ________.

What is the difference between an actual cost system and a normal cost system?

An example of a numerator reason for calculating annual indirect-cost rates includes ________.

The budgeted indirect-cost rate is calculated ________.

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

The approach often used when dealing with small amounts of underallocated or overallocated overhead is the ________.

For normal costing,even though the indirect-cost rate is based on actual,indirect costs are allocated to products based on the normal capacity of the cost-allocation base.

When an organization allocated indirect costs to departments by relative size of the budgets,it is based on the criterion of benefits received.

Which account would be credited if the following labor wages were incurred in a furniture manufacturing company?

The actual costs of all individual overhead categories are recorded in the Manufacturing Overhead Control account.

The adjusted allocation approach yields the benefits of ________.

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

In the service sector ________.

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

Actual (rather than allocated)manufacturing overhead costs are first recorded in the ________.

What is the difference between an actual cost system and a normal cost system?

An example of a numerator reason for calculating annual indirect-cost rates includes ________.

The budgeted indirect-cost rate is calculated ________.

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

The approach often used when dealing with small amounts of underallocated or overallocated overhead is the ________.

For normal costing,even though the indirect-cost rate is based on actual,indirect costs are allocated to products based on the normal capacity of the cost-allocation base.

When an organization allocated indirect costs to departments by relative size of the budgets,it is based on the criterion of benefits received.

Which account would be credited if the following labor wages were incurred in a furniture manufacturing company?

The actual costs of all individual overhead categories are recorded in the Manufacturing Overhead Control account.

The adjusted allocation approach yields the benefits of ________.

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

In the service sector ________.

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