Exam 3: Job Costing, Process Costing, and Operations Costing

If the under- or overapplied overhead amount is considered material, which of the following accounts would be the least likely to be adjusted at the end of the year?

Companies allocate service department costs to other departments for all of the following reasons except:

Under which of the following conditions will the first-in, first-out method produce the same cost of goods manufactured as the weighted-average method?

Rolling Hills Construction Rolling Hills Construction Co. assigns overhead to specific jobs based on actual direct labor cost (dollars). The following information is available for the month of June: Refer to the Rolling Hills Construction information above. The amount of overhead applied for June is:

Explain the term "cost driver" and give several examples.

Southern Manufacturing applies overhead to its products based on direct labor hours. During 2011 the company allocated overhead using a predetermined overhead rate of $5.25. At the end of 2011 it was determined that overhead was underapplied by $10,000. Which of the following could not be a possible reason for overhead being underapplied?

The accumulating, tracking, and assigning of production costs to the goods and services produced is called a:

Which of the following statements is true regarding the weighted-average method of process costing?

Which of the following is not true regarding predetermined overhead rates?

The formula for calculating the predetermined overhead rate for a cost pool is:

Bost Products Inc. Bost Products Inc. manufactures plastic products and uses process costing to account for the cost of products manufactured. All product costs are added evenly throughout the production process. The following information was available for the plastic department for the month of December: Refer to the Bost Products Inc. information above. If Bost uses the weighted-average method of computing equivalent units and assigning product costs, what is the cost of the ending work-in-process inventory in December?

Teresa Summerlin Teresa Summerlin manufactures hand-crafted pottery. Overhead is applied to products based on direct labor hours. At the beginning of the current year, Teresa estimated total overhead costs would be $30,000 and estimated direct labor hours would be 20,000. Actual overhead costs for the year totaled $36,000 for 18,000 actual direct labor hours. Refer to the Teresa Summerlin information above. By how much was overhead underapplied for the year?

Peace Products Inc. Peace Products Inc. uses process costing. The following information was available for the current year: Refer to the Peace Products Inc. information above. If Peace uses the first-in, first-out (FIFO) method of computing equivalent units and assigning product costs, what is the cost per equivalent unit? (round to nearest penny)

Delaney Products uses process costing. The following information is available for the current year: If Delaney has already calculated their cost per equivalent unit to be $18 per unit, what would be the cost of the ending work-in-process inventory assuming they use the weighted-average method?