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Exam 3: Job Costing

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Question 141

Multiple Choice

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Underallocated manufacturing overhead results when

A) production is greater than last year.
B) actual overhead is greater than expected.
C) actual overhead is greater than allocated overhead.
D) estimated overhead is greater than actual overhead.

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Question 142

Multiple Choice

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The cost of direct labor used in production is recorded as a

A) credit to manufacturing overhead.
B) credit to work in process inventory.
C) credit to wages expense.
D) credit to wages payable.

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Question 143

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The overhead allocation base should be the cost driver of manufacturing overhead costs.

Job costing should only be used by manufacturers.

When job costing is used at a service firm, the bill to the client shows

Cost of goods sold is debited and finished goods inventory is credited for

State whether each company below would be more likely to use a job costing system or a process costing system.

Here is selected data for Lori Corporation: The journal entry to close manufacturing overhead would include a

When job costing is used as a service firm

The journal entry to assign $1,700 of direct labor and $300 of indirect labor involves a debit to

If manufacturing overhead has been underallocated during the year, it means the jobs have been undercosted.

Manufacturing overhead costs cannot be directly traced to jobs.

Here are selected basic data for Wilson Company: If the company allocates overhead based on direct labor cost, what are the total actual manufacturing overhead costs?

Companies should always use job costing rather than process costing.

If the actual amount of the manufacturing overhead allocation base is greater than the estimated amount of the allocation base used to calculate the predetermined rate, then manufacturing overhead must have been underallocated.

The journal entry needed to record the completion of a job includes a

A production schedule always covers a one-year period of time.

Matthew Company uses a job cost system. The overhead account shows a $5,000 overallocated balance at the end of the year. Actual overhead incurred was $100,000. Other balances are: The entry to close manufacturing overhead would include a

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on machine hours to allocate manufacturing overhead to jobs. Selected data about the company's operations follows: By how much was manufacturing overhead overallocated or underallocated for the year?

Here are selected data for Stehli Company: If the company allocates overhead based on direct labor cost, what is the predetermined manufacturing overhead rate?