Question 1

A job-order cost sheet is the source document where direct labor costs are assigned to individual jobs.

Accepted Answer

A) True 
 B)False

Question 2

Victryl Company applies overhead based on direct labor hours.At the beginning of the year, Victryl estimates overhead to be $700,000, machine hours to be 200,000, and direct labor hours to be 35,000.During February, Victryl has 5,000 direct labor hours and 10,000 machine hours.  
If the actual overhead for February is $98,300, what is the overhead variance, and is it overapplied or underapplied?

Accepted Answer

A)  $1200 underapplied 
B)  $800 overapplied 
C)  $1,000 underapplied 
D)  $1,700 overapplied 
E)  $600 overapplied 
A)  $1200 underapplied 
B)  $800 overapplied 
C)  $1,000 underapplied 
D)  $1,700 overapplied 
E)  $600 overapplied

Question 3

Wright Corporation had the following information available for December of the current year: 
  Plantwide overhead rate is 150% of direct labor costs.Job cost sheets had the following balances:
 
  Jobs Z3 and Z4 were not completed at the end of December.What is the balance in work-in process for Wright at the end of December?

Accepted Answer

A)  $85,000 
B)  $87,500 
C)  $56,250 
D)  $53,750 
A)  $85,000 
B)  $87,500 
C)  $56,250 
D)  $53,750

Question 4

The ____________________ of allocation recognizes all interactions among support departments.

Accepted Answer

The answer of The ____________________ of allocation recognizes all interactions...

Question 5

The _____ ignores support department interactions and assigns support department costs only to the producing departments.​

Accepted Answer

A)  ​normal method 
B)  ​sequential method 
C)  ​direct method 
D)  ​reciprocal method 
E)  ​causal method 
A)  ​normal method 
B)  ​sequential method 
C)  ​direct method 
D)  ​reciprocal method 
E)  ​causal method

Question 6

Match each item with the correct statement below.
-An overhead rate computed using estimated data

Accepted Answer

A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold 
A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold

Question 7

Wealth Company has the following transactions for the month of November:  
  Balances at the beginning of the month were:

-
What is the correct journal entry to record actual overhead for the month?

Accepted Answer

A)   
  
B)   
  
C)   
  
D)  
  
E)  None of these are correct. 
A)   
  
B)   
  
C)   
  
D)  
  
E)  None of these are correct.

Question 8

Strict ______________________ are rarely used because they cannot provide accurate unit cost information on a timely basis.

Accepted Answer

The answer of Strict ______________________ are rarely used because they...

Question 9

John's Water Slides makes custom water slides for hotels.On September 1, there were three jobs in process, Jobs 812, 813, and 814.Two more jobs were started during September, Jobs 815 and 816.By September 30, Jobs 812, 814, and 816 were finished.The following data has been collected:  
  Overhead is applied at the rate of 120% of direct labor cost.Jobs are sold at cost plus 60%.Selling and administrative expenses for September totaled $2,950.By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job 814 decided he did not want the slide so it is still in the warehouse.
 
- 
What is John's operating income for the month of September?

Accepted Answer

A)  $127.40 
B)  $8,206.40 
C)  $3,077.40 
D)  $0 
E)  None of these. 
A)  $127.40 
B)  $8,206.40 
C)  $3,077.40 
D)  $0 
E)  None of these.

Question 10

Olson Corporation constructs new homes.Assume that Olson uses a job costing system.During May of the current year, the following transactions occurred: Olson purchased $4,500 of lumber on account.
Olson used $3,750 of lumber in production and incurred 50 hours of direct labor hours at $15 per hour.
Depreciation of $1,500 on equipment used to build new houses was recorded.
A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash
- 
The journal entry to record the requisition of lumber for Olson would include a

Accepted Answer

A)  debit to Work-in-Process of $4,500. 
B)  debit to Materials Inventory of $3,750. 
C)  credit to Finished Goods of $3,750. 
D)  debit to Work-in-Process of $3,750. 
A)  debit to Work-in-Process of $4,500. 
B)  debit to Materials Inventory of $3,750. 
C)  credit to Finished Goods of $3,750. 
D)  debit to Work-in-Process of $3,750.

Question 11

Match each item with the correct statement below.
-The difference between actual overhead and applied overhead

Accepted Answer

A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold 
A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold

Question 12

_________________ is found by multiplying the predetermined overhead rate by the actual use of the associated activity for the period.

Accepted Answer

The answer of _________________ is found by multiplying the predetermined...

Question 13

Match the following cost flows with the proper event in a job-costing firm:
-actual overhead is reconciled with applied overhead

Accepted Answer

A) completion of job 
B) end of each accounting period 
C) materials are moved from storage into production 
D) product is sold 
E) end of year 
A) completion of job 
B) end of each accounting period 
C) materials are moved from storage into production 
D) product is sold 
E) end of year

Question 14

A(n) ___________________________ determines unit cost by adding actual direct materials, actual direct labor, and estimated overhead.

Accepted Answer

The answer of A(n) ___________________________ determines unit cost by adding...

Question 15

Trust Company applies overhead based on direct labor hours.At the beginning of the year, Trust estimates overhead to be $700,000, machine hours to be 200,000, and direct labor hours to be 35,000.During February, Trust has 5,000 direct labor hours and 10,000 machine hours.  
-
What is the amount of overhead applied for February?

Accepted Answer

A)  $69,500 
B)  $22,000 
C)  $124,000 
D)  $185,200 
E)  $100,000 
A)  $69,500 
B)  $22,000 
C)  $124,000 
D)  $185,200 
E)  $100,000

A job-order cost sheet is the source document where direct labor costs are assigned to individual jobs.

The ____________________ of allocation recognizes all interactions among support departments.

The _____ ignores support department interactions and assigns support department costs only to the producing departments.

Match each item with the correct statement below. -An overhead rate computed using estimated data

Wealth Company has the following transactions for the month of November: Balances at the beginning of the month were: - What is the correct journal entry to record actual overhead for the month?

Strict ______________________ are rarely used because they cannot provide accurate unit cost information on a timely basis.

Match each item with the correct statement below. -The difference between actual overhead and applied overhead

_________________ is found by multiplying the predetermined overhead rate by the actual use of the associated activity for the period.

Match the following cost flows with the proper event in a job-costing firm: -actual overhead is reconciled with applied overhead

A(n) ___________________________ determines unit cost by adding actual direct materials, actual direct labor, and estimated overhead.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 4: Job-Order Costing and Normal Cost Overhead Application

A job-order cost sheet is the source document where direct labor costs are assigned to individual jobs.

The ____________________ of allocation recognizes all interactions among support departments.

The _____ ignores support department interactions and assigns support department costs only to the producing departments.​

Match each item with the correct statement below. -An overhead rate computed using estimated data

Wealth Company has the following transactions for the month of November: Balances at the beginning of the month were: - What is the correct journal entry to record actual overhead for the month?

Strict ______________________ are rarely used because they cannot provide accurate unit cost information on a timely basis.

Match each item with the correct statement below. -The difference between actual overhead and applied overhead

_________________ is found by multiplying the predetermined overhead rate by the actual use of the associated activity for the period.

Match the following cost flows with the proper event in a job-costing firm: -actual overhead is reconciled with applied overhead

A(n) ___________________________ determines unit cost by adding actual direct materials, actual direct labor, and estimated overhead.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

The _____ ignores support department interactions and assigns support department costs only to the producing departments.