1.An employee time ticket is an hour-by-hour summary of the employee’s activities throughout the
day.
-True
2.Actual overhead costs are not assigned to jobs in a job costing system
-True
3.In a job-order cost system, indirect labor is assigned to a job using information from the employee
time ticket.
-False
4.A job cost sheet is used to record how much a customer pays for the job once the job is
completed
-False
5.A bill of materials is a statement that lists the type and quantity of each type of direct material
needed to complete a unit of product.
- True
6.In a job-order costing system that is based on machine-hours, which of the following formulas is
correct?
-Predetermined overhead rate = estimated manufacturing overhead / estimated machine
hours
7.Assigning manufacturing overhead to a specific job is complicated by all the below except:
-Manufacturing overhead is incurred only to support some jobs.
8.Find the predetermined overhead rate per hour
-= (rent+depreciation+indirect labor+supervisor’s salary)/total direct labor hrs= 2.5
9.Find the predetermined overhead rate per machine hour
-= estimated total fixed manufacturing overhead from beginning of the year/estimated
activity level from beginning of year=17.80
10.Find the amount of overhead applied to job M759
-(344000+(3.9*40000))/40000=12.50 12.50*60=750
11.Find the job cost for job A881
-(155000+(3.40*50000))/50000=6.50 for job=645+2300+(6.50*100)=3595
12.Find the predetermined overhead rate for the assembly department
- =(57400+(3.40*7000))/7000=11.60
13.Sargent Corporation applies overhead cost to jobs on the basis of 70% of direct labor costs. If job
210 shows $20,300 of manufacturing overhead costs applied, how much was the direct labor cost
on the job?
-29000
14.Odonnel Corporation uses a job-order costing system with a single plantwide predetermined
overhead rate based on direct labor hours. The company based its predetermined overhead rate
for the current year on a total fixed manufacturing overhead cost of 36000, variable
manufacturing overhead of 2.80 per direct labor hour, and 10000 direct labor hours.
-=36000/10000=3.6 3.6+2.8=6.40
15.Gerstein Corporation uses a job-order costing system with a single plantwide predetermined
overhead rate based on direct labor hours. The company based its predetermined overhead rate
for the current year on total fixed manufacturing overhead cost of 90000, variable manufacturing
overhead of 3.70 per direct labor hour, and 50000 direct labor hours. The company recently
completed job M8100 which required 150 direct labor hours.
-=(3.70*50000)=185000 185000+90000=275000
Assigning manufacturing overhead to a specific job is complicated by all of the below except: A) Manufacturing overhead is an indirect cost that is either impossible or difficult to trace to a particular job. B) Manufacturing overhead is incurred only to support some jobs. C) Manufacturing overhead consists of both variable and fixed costs. D) The average cost of actual fixed manufacturing overhead expenses will vary depending on how many units are produced in a period.
Q: Which one of the following is not correct regarding the predetermined overhead rate? O a. The…
A: The predetermined overhead rate is used to allocate manufacturing overhead costs during current…
Q: Which of the following statements is not correct concerning multiple overhead rate systems? a. In…
A: In Multiple Overhead Rate, the predetermined absorption rate is different for different departments…
Q: Which of the following statements is not correct concerning multiple overhead rate systems? a. In…
A: Solution- A multiple overhead rate system is more complex than a system based on a single plant wide…
Q: In highly automated manufacturing where direct labor is small relative to other production costs and…
A: Direct labor cost is the salaries and wages paid to the laborers or workers that are included in the…
Q: Why are some manufacturing firms switching from direct-labor hours to machine hours or throughput…
A: Direct labor: Direct labor includes the wages of the employees who are directly involved in…
Q: The current cost accounting system charges overhead to products based on machine-hours. What unit…
A: ABC (Activity Based costing system): it is the method of allocating overhead cost to production…
Q: If the company allocates all of its overhead based on direct labour-hours, the unit product cost of…
A: Unit cost is a cost of producing a one product. It includes all the direct expense and overheads per…
Q: If the company allocates all of its overhead based on direct labour-hours, the unit product cost of…
A: D Ace Corporation is manufacturing two products currently, DAC and DIB Number of direct labour hours…
Q: Which of the following statements is TRUE about job - order costing system: a. Actual direct labor…
A: In order to determine the cost of specific equipment, the product which is identifiable, the job…
Q: Traditional overhead allocations result in which of the following situations? a. Overhead costs…
A: The overhead cost under traditional costing is based on single predetermined overhead rate.
Q: Discuss the reason why companies use predetermined (factory) overhead rates rather than actual…
A: Manufacturing overheads are the manufacturing costs that could not be directly associated with each…
Q: Discuss the reason why companies use predetermined (factory) overhead rates rather than actual…
A: Definition: Actual Overhead expenses are the genuine expenses acquired and ordinarily incorporate…
Q: Costs that are incurred as part of the manufacturing process, but are not clearly traceable to the…
A: e.Fixed costs.
Q: You have to find out the under or over valued Manufacturing overheads for the company A and B while…
A: Formula: Over Valued MOH: Applied MOH>Actual MOH Under Valued MOH: Applied MOH<Actual MOH
Q: A stapler manufacturer uses a single plantwide predetermined overhead allocation rate to allocate…
A: Step 1: Overhead cost is the cost spent by the business over and above the labor cost. It can be…
Q: Which of the following is the least used measure to allocate overhead? OA. physical units produced O…
A: Overhead means Indirect expenses incurred in manufacturing process
Q: Explain why the fixed manufacturing overhead cost per unit changes when there is a change in the…
A: Manufacturing overhead costs: "The costs, which do not relate directly with the manufacturing of…
Q: Which one of the following is not correct regarding the predetermined ?overhead rate .None of the…
A: The rate of predetermined overhead is used to apply the estimated manufacturing to various cost…
Q: If the activities causing overhead costs are different across different departments and products,…
A: Answer: True
Q: ‘Process costing is a term used in cost accounting to describe one method for collecting and…
A: Process Costing: Process costing is a method of cost accounting, which is used when the production…
Q: nderapplied factory overhead results when? a. A plant is operated at less than its normal…
A: Factory overhead cost is charged on the basis of overhead rate. Such overhead rate is calculated by…
Q: Which of the following statements is not correct concerning multiple ?overhead rate systems A…
A: The multiple overhead rate system is the one where different departments have their own rates of…
Q: Which of the following statements is not correct concerning multiple overhead rate systems? a. None…
A: Overheads are the various indirect material, labour and other costs incurred during a manufacturing…
Q: If manufacturing overhead has been over applied, it means that O Actual overhead costs were too low…
A: Manufacturing overhead means the expense incurred in factory which is not directly linked with…
Q: What are the shortcomings of waiting untilthe actual factory overhead expenses areknown before…
A: Factory Overheads mean indirect costs.
Q: The component of per-unit costs that remains constant as the production level varies is: a. product…
A: The cost of goods can be distinguished as variable or fixed cost.
Q: Which one of the following is not correct regarding the predetermined ?overhead rate .None of the…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: Underapplied factory overhead results when a. A plant is operated at less than its normal…
A: Factory Overhead Allocation Rate - Meaning Factory overhead cost is charged on the basis of overhead…
Q: Job order costing and process costing: O a. All the given answers are NOT correct. O b. compute…
A: Job-order costing: It is a costing method that calculate the cost of each item or service…
Q: All the following statements about multiple predetermined overhead rates are correct, EXCEPT: O a.…
A: Predetermined overhead rate is estimated rate at which overheads of the business is to be allocated…
Q: . Someone told Marco de Santos, president of D’ Santos Company, that under-or overapplied…
A: Solution: Someone told Marco de Santos, president of D’ Santos Company, that under-or overapplied…
Q: Job order costing and process costing: a. differently assign direct materials cost, direct labor…
A: The correct option is C. Do not use the same manufacturing account, including manufacturing.....
Q: a. TRADITIONAL - What is traditional cost allocation for manufacturing overhead? Give an example of…
A: For ascertaining the accurate product cost or total production cost of the manufacturing…
Q: Which of the following statements about a process costing system is incorrect? a) In a process…
A: Process Costing: Process costing is a method of cost accounting in which all the costs that are…
Q: What costs associated with a job are allocated to manufacturing overhead. I always get this question…
A: MANUFACTURING COST : MANUFACTURING COSTS REFER TO THOSE ARE SPENT TO TRANSFORM MATERIALS INTO…
Q: Which of the following statements related to job cost sheets is TRUE? O a. Ajob cost sheet includes…
A: The correct option is D. JOB cost sheet do not normally include the selling price of the job…
Q: . Tallon Company manufactures a single product. The product's prime costs consist of a direct…
A: Prime cost includes all the direct expenses such as direct material, direct labor, direct expenses.…
Q: Use of a plantwide factory overhead rate assumes that the activities causing overhead costs are the…
A: Introduction:Plantwide factory overhead rate: The rate at which overheads are allocated to all the…
Q: hich of the following measures is appropriate as cost driver for personnel administration costs? a.…
A: Cost drivers are the factors which have a direct impact on the overall cost structure of the…
Q: given ansvwers is FALSE De Applied manufacturing overhead costs are included in job cost sheets.…
A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…
Q: Total manufacturing cost in a job-sheet for job-order costing, includes: a. Actual direct materials…
A: Cost accounting is nationwide used by organizations to determine the cost of the product and proper…
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