Question 1

The predetermined overhead rate is based on the relationship between

Accepted Answer

A) estimated annual costs and actual activity. 
B) estimated annual costs and estimated annual activity. 
C) actual monthly costs and actual annual activity. 
D) estimated monthly costs and actual monthly activity. 
A) estimated annual costs and actual activity. 
B) estimated annual costs and estimated annual activity. 
C) actual monthly costs and actual annual activity. 
D) estimated monthly costs and actual monthly activity.

Question 2

Henson Company applies overhead on the basis of 120% of direct labor cost.Job No.190 is increased with $140000 of direct materials costs and $180000 of manufacturing overhead.The total manufacturing costs for Job No.190 is

Accepted Answer

A) $320000. 
B) $536000. 
C) $348000. 
D) $470000. 
A) $320000. 
B) $536000. 
C) $348000. 
D) $470000.

Question 3

The labor costs that have been identified as indirect labor should be recorded as

Accepted Answer

A) manufacturing overhead. 
B) direct labor. 
C) the individual jobs worked on. 
D) salary expense. 
A) manufacturing overhead. 
B) direct labor. 
C) the individual jobs worked on. 
D) salary expense.

Question 4

Barger Company had the following information at December 31: Finished goods inventory, January $ 1 \quad \$ 90,000 $
Finished goods inventory, December $ 31 \quad 126,000 $ If the cost of goods manufactured during the year amounted to $1895000 and annual sales were $2994000 how much is the amount of gross profit for the year?

Accepted Answer

A) $1099000 
B) $1009000 
C) $1859000 
D) $1135000 
A) $1099000 
B) $1009000 
C) $1859000 
D) $1135000

Question 5

Cost of goods sold can be obtained from

Accepted Answer

A) analysis of all the control accounts in the cost system. 
B) the Finished Goods Inventory records. 
C) the Work in Process Inventory records. 
D) the Raw Materials Inventory account. 
A) analysis of all the control accounts in the cost system. 
B) the Finished Goods Inventory records. 
C) the Work in Process Inventory records. 
D) the Raw Materials Inventory account.

Question 6

Haight Company incurred direct materials costs of $2500000 during the year.Manufacturing overhead applied was $450000 and is applied at the rate of 60% of direct labor costs.Haight Company's total manufacturing costs for the year was

Accepted Answer

A) $3700000. 
B) $3220000. 
C) $2950000. 
D) $4720000. 
A) $3700000. 
B) $3220000. 
C) $2950000. 
D) $4720000.

Question 7

Total manufacturing costs for a period consists of the costs of direct materials used the cost of direct labor incurred and the manufacturing overhead applied during the period.

Accepted Answer

A) True 
 B)False

Question 8

In determining total manufacturing costs on the cost of goods manufactured schedule

Accepted Answer

A) beginning work in process inventory should have a zero balance. 
B) actual manufacturing overhead costs appear as a deduction. 
C) manufacturing overhead applied is added to direct materials and direct labor. 
D) ending work in process inventory is deducted from beginning work in process inventory. 
A) beginning work in process inventory should have a zero balance. 
B) actual manufacturing overhead costs appear as a deduction. 
C) manufacturing overhead applied is added to direct materials and direct labor. 
D) ending work in process inventory is deducted from beginning work in process inventory.

Question 9

If the entry to assign factory labor showed only an increase to Work In Process Inventory then all labor costs were

Accepted Answer

A) direct labor. 
B) indirect labor. 
C) overtime related. 
D) regular hours. 
A) direct labor. 
B) indirect labor. 
C) overtime related. 
D) regular hours.

Question 10

As of December 31 2022 Stand Still Industries had $2500 of raw materials inventory.At the beginning of 2022 there was $2000 of materials on hand.During the year the company purchased $375000 of materials; however it paid for only $312500.How much inventory was requisitioned for use on jobs during 2022?

Accepted Answer

A) $362000 
B) $374500 
C) $375500 
D) $363000 
A) $362000 
B) $374500 
C) $375500 
D) $363000

Question 11

Recording transactions to control accounts in a costing system are made

Accepted Answer

A) monthly. 
B) daily. 
C) annually. 
D) semi-annually. 
A) monthly. 
B) daily. 
C) annually. 
D) semi-annually.

Question 12

If actual overhead is greater than applied manufacturing overhead then manufacturing overhead is:

Accepted Answer

A) underapplied. 
B) overapplied. 
C) a loss on the income statement under "Other Expenses and Losses." 
D) considered a miscellaneous expense. 
A) underapplied. 
B) overapplied. 
C) a loss on the income statement under "Other Expenses and Losses." 
D) considered a miscellaneous expense.

Question 13

Which of the following statements about under- or overapplied manufacturing overhead is correct?

Accepted Answer

A) After the adjustment to transfer over- or underapplied overhead to Cost of Goods Sold Manufacturing Overhead will have a zero balance. 
B) When Manufacturing Overhead has a negative balance overhead is said to be under-applied. 
C) At the end of the year under- or overapplied overhead is not eliminated by adjusment. 
D) When annual financial statements are prepared overapplied overhead is reported in current liabilities. 
A) After the adjustment to transfer over- or underapplied overhead to Cost of Goods Sold Manufacturing Overhead will have a zero balance. 
B) When Manufacturing Overhead has a negative balance overhead is said to be under-applied. 
C) At the end of the year under- or overapplied overhead is not eliminated by adjusment. 
D) When annual financial statements are prepared overapplied overhead is reported in current liabilities.

Question 14

Manufacturing overhead is the only product cost that can be assigned to jobs as soon as the costs are incurred.

Accepted Answer

A) True 
 B)False

Question 15

Overapplied overhead means that actual manufacturing overhead costs were greater than the manufacturing overhead costs applied to jobs.

Accepted Answer

A) True 
 B)False

Question 16

During 2022 Cotte Manufacturing expected Job No.59 to cost $300000 of overhead $500000 of materials and $200000 in labor.Cotte applied overhead based on direct labor cost.Actual production required an overhead cost of $295000 $570000 in materials used and $220000 in labor.All of the goods were completed.How much is the amount of over- or underapplied overhead for this job?

Accepted Answer

A) $5000 underapplied 
B) $5000 overapplied 
C) $35000 underapplied 
D) $35000 overapplied 
A) $5000 underapplied 
B) $5000 overapplied 
C) $35000 underapplied 
D) $35000 overapplied

Question 17

If manufacturing overhead has been underapplied during the year the adjustment at the end of the year will show a(n)

Accepted Answer

A) increase to Manufacturing Overhead. 
B) decrease to Cost of Goods Sold. 
C) increase to Work in Process Inventory. 
D) increase to Cost of Goods Sold. 
A) increase to Manufacturing Overhead. 
B) decrease to Cost of Goods Sold. 
C) increase to Work in Process Inventory. 
D) increase to Cost of Goods Sold.

Question 18

Which of the following is included in factory labor costs?

Accepted Answer

A) Gross earnings. 
B) Employer payroll taxes. 
C) Fringe benefits. 
D) All of these are included. 
A) Gross earnings. 
B) Employer payroll taxes. 
C) Fringe benefits. 
D) All of these are included.

Question 19

Factory Labor is a(n)

Accepted Answer

A) expense account. 
B) control account. 
C) subsidiary account. 
D) temporary account. 
A) expense account. 
B) control account. 
C) subsidiary account. 
D) temporary account.

Question 20

A good system of internal control requires that the job order cost sheet be destroyed as soon as the job is complete.

Accepted Answer

A) True 
 B)False

The predetermined overhead rate is based on the relationship between

Henson Company applies overhead on the basis of 120% of direct labor cost.Job No.190 is increased with $140000 of direct materials costs and $180000 of manufacturing overhead.The total manufacturing costs for Job No.190 is

The labor costs that have been identified as indirect labor should be recorded as

Cost of goods sold can be obtained from

Haight Company incurred direct materials costs of $2500000 during the year.Manufacturing overhead applied was $450000 and is applied at the rate of 60% of direct labor costs.Haight Company's total manufacturing costs for the year was

Total manufacturing costs for a period consists of the costs of direct materials used the cost of direct labor incurred and the manufacturing overhead applied during the period.

In determining total manufacturing costs on the cost of goods manufactured schedule

If the entry to assign factory labor showed only an increase to Work In Process Inventory then all labor costs were

Recording transactions to control accounts in a costing system are made

If actual overhead is greater than applied manufacturing overhead then manufacturing overhead is:

Which of the following statements about under- or overapplied manufacturing overhead is correct?

Manufacturing overhead is the only product cost that can be assigned to jobs as soon as the costs are incurred.

Overapplied overhead means that actual manufacturing overhead costs were greater than the manufacturing overhead costs applied to jobs.

If manufacturing overhead has been underapplied during the year the adjustment at the end of the year will show a(n)

Which of the following is included in factory labor costs?

Factory Labor is a(n)

A good system of internal control requires that the job order cost sheet be destroyed as soon as the job is complete.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

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Exam 11: Incremental Analysis

The predetermined overhead rate is based on the relationship between

Henson Company applies overhead on the basis of 120% of direct labor cost.Job No.190 is increased with $140000 of direct materials costs and $180000 of manufacturing overhead.The total manufacturing costs for Job No.190 is

The labor costs that have been identified as indirect labor should be recorded as

Cost of goods sold can be obtained from

Haight Company incurred direct materials costs of $2500000 during the year.Manufacturing overhead applied was $450000 and is applied at the rate of 60% of direct labor costs.Haight Company's total manufacturing costs for the year was

Total manufacturing costs for a period consists of the costs of direct materials used the cost of direct labor incurred and the manufacturing overhead applied during the period.

In determining total manufacturing costs on the cost of goods manufactured schedule

If the entry to assign factory labor showed only an increase to Work In Process Inventory then all labor costs were

Recording transactions to control accounts in a costing system are made

If actual overhead is greater than applied manufacturing overhead then manufacturing overhead is:

Which of the following statements about under- or overapplied manufacturing overhead is correct?

Manufacturing overhead is the only product cost that can be assigned to jobs as soon as the costs are incurred.

Overapplied overhead means that actual manufacturing overhead costs were greater than the manufacturing overhead costs applied to jobs.

If manufacturing overhead has been underapplied during the year the adjustment at the end of the year will show a(n)

Which of the following is included in factory labor costs?

Factory Labor is a(n)

A good system of internal control requires that the job order cost sheet be destroyed as soon as the job is complete.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters