Exam 16: Cost Concepts and Cost Allocation

For a manufactured product,all costs incurred to get the product ready for sale are included in the inventory value of the product.

Overhead is said to be underapplied when actual overhead costs exceed the amount applied to production.

Indirect costs incurred are charged directly to the Work in Process Inventory account.

Which of the following represents the overhead applied to a product?

The cost of goods manufactured decreases which of the following accounts?

The product is the cost object when assigning indirect product costs.

Lopar Company uses a predetermined overhead rate based on direct labor dollars.Lopar Company estimated that its 2010 overhead would total $938,000 and that 2010 direct labor costs would be $670,000.During 2010,actual overhead costs were $960,000,and actual direct labor costs were $700,000.By how much was Lopar's overhead over- or underapplied?

Which of the following costs is considered overhead?

The costs listed below are related to a manufacturer of all-natural ice cream.In the space provided,indicate whether the cost should be classified as direct materials (DM),direct labor (DL),or overhead (OH). _____ a. Maintenance on factory building _____ b. Cream _____ c. Mixing department wages _____ d. Vanilla _____ e. Factory supervisor's salary _____ _____ f. Machine oil for mixing machines _____ g. Sugar _____ h. Machine operator wages _____ i. Factory maintenance labor _____ j. Depreciation on factory equipment

Cost of goods manufactured is equal to

The cost of goods manufactured is added to the beginning balance of Finished Goods Inventory to obtain the total cost of goods available for sale during the period.

The costs of marketing and delivering a product are not included in its inventory valuation.

Total manufacturing costs increase the balance of the Work in Process Inventory account.

The following budget data are available for Howers Company: Estimated direct labor hours 16,000 Estimated direct labor dollars \ 170,000 Estimated coerhead costs \ 207,200 If overhead is to be applied based on direct labor hours,the predetermined overhead rate per hour (rounded)is

Indirect costs can be conveniently traced to a cost object.

Which of the following account balances is not reported on the balance sheet?

If overhead is applied on the basis of direct labor hours,and actual hours worked are less than budgeted,which of the following is true,assuming estimated overhead is correct?

Which of the following should not be included in the computation of cost of goods manufactured?

Which of the following accounts would be adjusted by the disposal of an immaterial amount of overapplied overhead?

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