Barnes Company applies overhead on the basis of machine hours.Given the following data compute overhead applied and the under- or overapplication of overhead for the period: $\begin{array}{lr} \text { Estimated annual overhead cost } & \$ 3,000,000 \\ \text { Actual annual overhead cost } & \$ 2,970,000 \\ \text { Estimated machine hours } & 300,000 \\ \text { Actual machine hours } & 295,000 \end{array}$

A) $2950000 applied and $20000 overapplied B) $3000000 applied and $20000 overapplied C) $2950000 applied and $20000 underapplied D) $2970000 applied and neither under- nor overapplied A) $2950000 applied and $20000 overapplied B) $3000000 applied and $20000 overapplied C) $2950000 applied and $20000 underapplied D) $2970000 applied and neither under- nor overapplied

Sportly Inc.completed Job No.B14 during 2022.The job cost sheet listed the following: \[\begin{array} { l r } \text { Direct materials } & \$ 110,000 \\ \text { Direct labor } & \$ 60,000 \\ \text { Manufacturing overhead applied } & \$ 82,000 \\ \text { Units produced } & 3,000 \text { units } \\ \text { Units sold } & 1,800 \text { units } \end{array}\] How much is the cost of the finished goods on hand from this job?

A) $210000 B) $126000 C) $100800 D) $102000 A) $210000 B) $126000 C) $100800 D) $102000

Gulick Company developed the following data for the current year: $\begin{array}{lr} \text { Beginning work in process inventory } & \$ 240,000 \\ \text { Direct materials used } & 144,000 \\ \text { Actual overhead } & 288,000 \\ \text { Overhead applied } & 216,000 \\ \text { Cost of goods manufactured } & 264,000 \\ \text { Total manufacturing costs } & 720,000 \end{array}$ Gulick Company's direct labor cost for the year is

A) $72000. B) $360000. C) $216000. D) $288000. A) $72000. B) $360000. C) $216000. D) $288000.

Redman Company manufactures customized desks.The following pertains to Job No.978: $\begin{array}{lr} \text { Direct materials used } & \$ 15,450 \\ \text { Direct labor hours worked } & 360 \\ \text { Direct labor rate per hour } & \$ 15.00 \\ \text { Machine hours used } & 300 \\ \text { Predetermined overhead rate per machine hour } & \$ 22.00 \end{array}$ What is the total manufacturing cost for Job No.978?

A) $25650 B) $27450 C) $28950 D) $30750 A) $25650 B) $27450 C) $28950 D) $30750

Exam 11: Incremental Analysis

Barnes Company applies overhead on the basis of machine hours.Given the following data compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost \ 3,000,000 Actual annual overhead cost \ 2,970,000 Estimated machine hours 300,000 Actual machine hours 295,000

(Multiple Choice)

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Question 61

At the beginning of the year Monroe Company estimates annual overhead costs to be $2400000 and that 300000 machine hours will be incurred.Using machine hours as a base the amount of overhead applied during the year if actual machine hours for the year was 315000 hours is

(Multiple Choice)

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(32)

Question 62

Sportly Inc.completed Job No.B14 during 2022.The job cost sheet listed the following: Direct materials \ 110,000 Direct labor \ 60,000 Manufacturing overhead applied \ 82,000 Units produced 3,000 units Units sold 1,800 units How much is the cost of the finished goods on hand from this job?

(Multiple Choice)

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Question 63

If Manufacturing Overhead has a negative balance at the end of the period then

(Multiple Choice)

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Question 64

Requisitions for direct materials are recorded daily to the individual job cost sheets.

(True/False)

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Question 65

Gulick Company developed the following data for the current year: Beginning work in process inventory \ 240,000 Direct materials used 144,000 Actual overhead 288,000 Overhead applied 216,000 Cost of goods manufactured 264,000 Total manufacturing costs 720,000 Gulick Company's direct labor cost for the year is

(Multiple Choice)

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Question 66

Process costing is not used when

(Multiple Choice)

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Question 67

Process costing is used when

(Multiple Choice)

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Question 68

The acquisition of raw materials will

(Multiple Choice)

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Question 69

A job order cost system is most appropriate when a large volume of uniform products are produced.

(True/False)

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Question 70

Direct materials requisitioned from the storeroom should increase the Work In Process Inventory account and the job cost sheets for the individual jobs on which the materials were used.

(True/False)

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Question 71

Redman Company manufactures customized desks.The following pertains to Job No.978: Direct materials used \ 15,450 Direct labor hours worked 360 Direct labor rate per hour \ 15.00 Machine hours used 300 Predetermined overhead rate per machine hour \ 22.00 What is the total manufacturing cost for Job No.978?

(Multiple Choice)

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Question 72

Fringe benefits and payroll taxes associated with factory workers should be accumulated as a part of Factory Labor.

(True/False)

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Question 73

The job cost sheet does not show

(Multiple Choice)

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Question 74

The two basic types of cost accounting systems are

(Multiple Choice)

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Question 75

The Work in Process account is decreased for all raw materials purchase returns and allowances.

(True/False)

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Question 76

At the end of the year the accountant records the amount of the overapplied overhead as a decrease to Cost of Goods Sold.

(True/False)

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Question 77

Raw Materials Inventory Factory Labor and Manufacturing Overhead are all control accounts when a job order cost accounting system is used.

(True/False)

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Question 78

When goods are sold the Cost of Goods Sold is increased and Work in Process Inventory account is decreased.

(True/False)

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Question 79

Factory labor should be assigned to selling and administrative expenses on a proportionate basis.

(True/False)

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Question 80

At the beginning of the year Monroe Company estimates annual overhead costs to be $2400000 and that 300000 machine hours will be incurred.Using machine hours as a base the amount of overhead applied during the year if actual machine hours for the year was 315000 hours is

Sportly Inc.completed Job No.B14 during 2022.The job cost sheet listed the following: Direct materials \ 110,000 Direct labor \ 60,000 Manufacturing overhead applied \ 82,000 Units produced 3,000 units Units sold 1,800 units How much is the cost of the finished goods on hand from this job?

If Manufacturing Overhead has a negative balance at the end of the period then

Requisitions for direct materials are recorded daily to the individual job cost sheets.

Process costing is not used when

Process costing is used when

The acquisition of raw materials will

A job order cost system is most appropriate when a large volume of uniform products are produced.

Direct materials requisitioned from the storeroom should increase the Work In Process Inventory account and the job cost sheets for the individual jobs on which the materials were used.

Fringe benefits and payroll taxes associated with factory workers should be accumulated as a part of Factory Labor.

The job cost sheet does not show

The two basic types of cost accounting systems are

The Work in Process account is decreased for all raw materials purchase returns and allowances.

At the end of the year the accountant records the amount of the overapplied overhead as a decrease to Cost of Goods Sold.

Raw Materials Inventory Factory Labor and Manufacturing Overhead are all control accounts when a job order cost accounting system is used.

When goods are sold the Cost of Goods Sold is increased and Work in Process Inventory account is decreased.

Factory labor should be assigned to selling and administrative expenses on a proportionate basis.

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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