Exam 4: Accounting for Factory Overhead

Costs that change in relation to volume changes, but not in direct proportion to those changes, are known as:

A predetermined factory overhead rate is computed by dividing

The method of distributing service department costs to production departments which distributes service department costs regressively to other service departments, and then to production departments is the:

Which of the following statements about semivariable costs is not true?

The number of workers in the departments served would most likely be the basis for distributing the cost of which service department?

Meger Manufacturing uses the direct labor cost method for applying factory overhead to production. The budgeted direct labor cost and factory overhead for the previous fiscal year were $1,000,000 and $800,000, respectively. During the year, the company started and completed Job 352A, which had direct material and labor costs of $32,000 and $45,000, respectively. What was the cost of Job 352A?

Kilowatt hours would be an appropriate basis for distributing the cost of which of the following service departments to production departments?

When a manufacturing company has a highly automated manufacturing plant, what is probably the most appropriate basis of applying factory overhead costs to work in process?

Meger Manufacturing uses the direct labor cost method for applying factory overhead to production. The budgeted direct labor cost and factory overhead for the previous fiscal year were $1,000,000 and $800,000, respectively. Actual direct labor cost and factory overhead were $1,100,000 and $825,000, respectively. What is the amount of under- or overapplied factory overhead?

Meger Manufacturing uses the direct labor cost method for applying factory overhead to production. The budgeted direct labor cost and factory overhead for the previous fiscal year were $1,000,000 and $800,000, respectively. Actual direct labor cost and factory overhead were $1,100,000 and $825,000, respectively. What was Meger's predetermined factory overhead rate?

The report that is prepared after the posting is completed at the end of the accounting period that shows the items of expense by department and in total, and is used to prove the balance of the Factory Overhead Control account is the:

The Mason Corporation budgeted overhead at $240,000 for the period for Department A based on a budgeted volume of 60,000 direct labor hours. At the end of the period, the factory overhead control account for Department A had a debit balance of $260,000; actual direct labor hours were 63,000. What was the under- or over applied factory overhead for the period?

Nutt Industries electricity costs and machine hours over a six-month period follow: Using the high-low method, what is the formula that can be used to estimate electricity costs at different levels of volume?

Stanforth Company's flexible budget for 50,000 units shows $100,000 and $150,000 in variable and fixed costs, respectively. At 60,000 units, the flexible budget would show:

Factory overhead:

Venus Company has developed the following flexible budget formula for annual indirect labor cost: Total annual cost = $12,000 + $.25 / unit Operating budgets for the current month are based on 5,000 units. Indirect labor costs included in this monthly planning budget are:

Costs that vary in proportion to direct volume changes are:

The following are the results of the least squares regression method which was run to separate the fixed and variable components of the Zulli Corporation's monthly factory utility costs using the number of products produced: y = 49,222.2992 + 5.09 x R² = .97765 a) Assume Zulli budgets production of 5,400 units in June, what should budgeted utility costs be? b) Explain what R² means. Is this equation a good predictor of utility costs?

The method of distributing service department costs to production departments that takes into consideration that service departments not only may provide service to but also may receive service from other service departments is the:

The Lucas Manufacturing Company has two production departments (fabrication and assembly) and three service departments (general factory administration, factory maintenance, and factory cafeteria). A summary of costs and other data for each department, prior to allocation of service department costs for the year ended June 30, appears below: The costs of the general factory administration department, factory maintenance department, and factory cafeteria are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively. Assuming that Lucas elects to distribute service department costs to production departments using the direct distribution method, the amount of general factory administration department costs that would be allocated to the assembly department would be (round all final calculations to the nearest dollar):