Question 1

When raw materials are received there is no effort at this point to associate the cost of materials with specific jobs.

Accepted Answer

A) True 
 B)False

Question 2

Spencer Inc.applies overhead to production at a predetermined rate of 80% based on direct labor cost.Job No.130 the only job still in process at the end of August has been increased with manufacturing overhead of $6400.What was the amount of direct materials added to Job 130 assuming the balance in Work in Process inventory is $20000?

Accepted Answer

A) $7000. 
B) $6400. 
C) $5600. 
D) $20000. 
A) $7000. 
B) $6400. 
C) $5600. 
D) $20000.

Question 3

In a manufacturing company the cost of factory labor consists of all of the following except

Accepted Answer

A) employer payroll taxes. 
B) fringe benefits incurred by the employer. 
C) net earnings of factory workers. 
D) gross earnings of factory workers. 
A) employer payroll taxes. 
B) fringe benefits incurred by the employer. 
C) net earnings of factory workers. 
D) gross earnings of factory workers.

Question 4

Minton Company provided the following information from its accounting records for 2022: $\begin{array}{lr}
\text { Estimated production } & 60,000 \text { labor hours } \
\text { Actual production } & 56,000 \text { labor hours } \
\text { Estimated overhead } & \$ 1,800,000 \
\text { Actual overhead } & \$ 1,740,000
\end{array}$ How much is the predetermined overhead rate if Minton Company bases it on direct labor hours?

Accepted Answer

A) $30.00 per hour 
B) $29.00 per hour 
C) $32.14 per hour 
D) $31.07 per hour 
A) $30.00 per hour 
B) $29.00 per hour 
C) $32.14 per hour 
D) $31.07 per hour

Question 5

A process cost accounting system is appropriate for similar products that are continuously mass produced.

Accepted Answer

A) True 
 B)False

Question 6

The formula for the predetermined overhead rate is estimated annual overhead costs divided by an estimated annual operating activity.

Accepted Answer

A) True 
 B)False

Question 7

Factory labor costs

Accepted Answer

A) are accumulated in a control account. 
B) do not include pension costs. 
C) include vacation pay. 
D) are based on workers' net pay. 
A) are accumulated in a control account. 
B) do not include pension costs. 
C) include vacation pay. 
D) are based on workers' net pay.

Question 8

The Raw Materials Inventory account is

Accepted Answer

A) a subsidiary account. 
B) increased for invoice costs and freight costs chargeable to the purchaser. 
C) increased for purchase discounts taken. 
D) increased for purchase returns and allowances. 
A) a subsidiary account. 
B) increased for invoice costs and freight costs chargeable to the purchaser. 
C) increased for purchase discounts taken. 
D) increased for purchase returns and allowances.

Question 9

All of the following would be recorded in assigning accumulated costs to the Work In Process Inventory except:

Accepted Answer

A) the purchase of raw materials. 
B) raw materials are used. 
C) overhead is applied. 
D) factory labor is used. 
A) the purchase of raw materials. 
B) raw materials are used. 
C) overhead is applied. 
D) factory labor is used.

Question 10

If at the end of the year Manufacturing Overhead has been overapplied it means that

Accepted Answer

A) actual overhead costs were greater than the overhead assigned to jobs. 
B) actual overhead costs were less than the overhead assigned to jobs. 
C) overhead has not been applied to jobs still in process. 
D) cost of goods will have to be increased by the amount of the overapplied overhead. 
A) actual overhead costs were greater than the overhead assigned to jobs. 
B) actual overhead costs were less than the overhead assigned to jobs. 
C) overhead has not been applied to jobs still in process. 
D) cost of goods will have to be increased by the amount of the overapplied overhead.

When raw materials are received there is no effort at this point to associate the cost of materials with specific jobs.

In a manufacturing company the cost of factory labor consists of all of the following except

A process cost accounting system is appropriate for similar products that are continuously mass produced.

The formula for the predetermined overhead rate is estimated annual overhead costs divided by an estimated annual operating activity.

Factory labor costs

The Raw Materials Inventory account is

All of the following would be recorded in assigning accumulated costs to the Work In Process Inventory except:

If at the end of the year Manufacturing Overhead has been overapplied it means that

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

Exam 11: Incremental Analysis

When raw materials are received there is no effort at this point to associate the cost of materials with specific jobs.

In a manufacturing company the cost of factory labor consists of all of the following except

A process cost accounting system is appropriate for similar products that are continuously mass produced.

The formula for the predetermined overhead rate is estimated annual overhead costs divided by an estimated annual operating activity.

Factory labor costs

The Raw Materials Inventory account is

All of the following would be recorded in assigning accumulated costs to the Work In Process Inventory except:

If at the end of the year Manufacturing Overhead has been overapplied it means that

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