Exam 10: Accounting Systems for Manufacturing Businesses

Hudson, Inc. has estimated total factory overhead costs of $400,000, and 20,000 direct labor hours for the current fiscal year. If the direct labor hours for Job N41 is 1,500, calculate the total factory overhead applied to this job.

In a job order cost accounting system, the effect of the flow of direct materials into production will be:

Which of the following products would most likely be manufactured using a job order costing system?

Which of the following is most likely be a period cost?

Which of the following is not a product cost?

During the year, Cambridge Corporation applied factory overhead costs of $205,000 to production. At the end of the year, total overapplied factory overhead is $17,000. What was the amount of actual factory overhead cost incurred during the year?

The direct labor and overhead costs of providing services to clients are accumulated in:

Which of the following businesses is most likely to use process cost accounting system?

Which of the following is an example of direct labor cost for an airplane manufacturer?

The underapplied factory overhead amount may be transferred to cost of goods sold at the end of the fiscal year.

One of the ways in which just-in-time processing is accomplished in manufacturing and nonmanufacturing processes is by:

Which of the following is most likely to be a product cost?

Indicate whether each of the following costs of a cabinet manufacturer would be classified as direct materials cost, direct labor cost, factory overhead cost, or period cost. a. Plant manager's salary b. Office administrative assistant's salary c. Depreciation on factory equipment d. Rent on office building e. Varieties of wood f. Varnish for coating cabinets g. Utilities cost on the factory h. Cabinet assembly worker's salary i. Advertising costs j. Screws and glue used in assembly process

Which of the following would probably not be found in the accounting system of a service provider?

A difference in quantity of materials used on two comparable jobs may be caused by:

Compute factory overhead cost from the following costs: 20,000 Depreciation on factory buildings 25,000 Depreciation on office equipment 70,000 Direct materials used 3,000 Indirect labor

The recording of the factory labor costs incurred for general factory use would include a debit to:

Recording direct labor costs in a job order cost accounting system:

A manufacturing business reports three types of inventory on its balance sheet: direct materials, products in the process of being manufactured, and finished products.

A company may use a job order cost system for some of its products and a process cost system for other products.