Exam 16: Cost Concepts and Cost Allocation

If Company G uses an overhead rate of $3.50 per direct labor dollar,and 63,500 hours of direct labor at $9.00 per hour are actually incurred,$222,250 of overhead costs are allocated for that period.

Which of the following is not considered important in the proper allocation of overhead costs?

Which of the following is not a product cost?

The key to the preparation of an income statement for a manufacturing company is proper determination of the cost of goods manufactured.

The two types of cost behavior are value-adding and nonvalue-adding.

The entry to record the application of overhead costs includes a debit to the Overhead account.

Raisin Company's overhead cost was overapplied by $4,300 in the current year.The estimated overhead was $170,000,and the applied overhead was $166,000.Compute the actual overhead.

Both indirect materials and indirect labor are overhead costs.

Direct materials are the only materials in a product.

Actual overhead plus overapplied overhead equals applied overhead.

Overhead costs are traced to products in the same way that direct materials and direct labor are traced.

The two primary types of cost behavior are fixed and variable.

An example of a period cost is

A single predetermined overhead rate is most appropriately used to assign overhead costs when a company produces a diverse set of products.

Inventoriable cost is a synonym of period cost.

The beginning finished goods inventory for Boston Co.was $401,050.Goods completed during the year were costed at $783,700.The ending finished goods inventory was dangerously low,having been reduced to $127,700.The cost of goods sold for the year for Boston Co.was

A cost pool is a collection of overhead costs related to a cost object.

Which of the following labor costs would be included in direct labor?

A materials request form is prepared whenever the purchasing department orders materials.

Minor materials and other production supplies that cannot be conveniently or economically traced to specific products are accounted for as indirect materials.