Question 1

Alice Blue is a wholesale dress manufacturer. In manufacturing dresses, the following costs were incurred in March:
$\begin{array}{|l|l|}
\hline \text { Direct materials } & \$ 40,600 \
\hline \text { Direct labor } & \$ 78,000 \
\hline
\end{array}$
Projected overhead for the year was $560,000 to be allocated based on project direct labor cost of $395,000. What are the total manufacturing costs for March?

Accepted Answer

The answer of Alice Blue is a wholesale dress manufacturer....

Question 2

A credit balance in the manufacturing overhead account at month end indicates that the actual overhead costs were less than the amount of overhead costs applied to jobs.

Accepted Answer

A) True 
 B)False

Question 3

In a job cost system, the Work-in-Process Inventory controlling account may be reconciled to the total of the:

Accepted Answer

A)   Employee time cards.
B)   Materials requisitions.
C)   Work-in-Process Inventory records for each department or process.
D)   Job cost sheets.

Question 4

If manufacturing overhead is materially over-applied, it is best to close it to:

Accepted Answer

A)   Work-in-process inventory.
B)   Finished goods inventory.
C)   Cost of goods sold.
D)   Apportioned among work-in-process, finished goods, and cost of goods sold.

Question 5

The advantage of using a predetermined overhead application rate is that:

Accepted Answer

A)   Units produced are charged with a "normal" amount of manufacturing overhead regardless of whether they are produced in a high-volume month or a low-volume month.
B)   Overhead costs will be limited to the predetermined amount.
C)   Entries need not be made to record actual overhead costs incurred.
D)   The unit cost of production will be lower than it would be if actual overhead costs were assigned to units produced.

Question 6

Under- and over-applied overhead
What is meant by under-applied overhead? By over-applied overhead? Briefly explain each term.

Accepted Answer

Under-applied overhead refers to the deb...

Question 7

Metalworks applies manufacturing overhead on the basis of direct materials used in production. During the current period, direct materials used for job #123 amounted to $22,545. If Metalworks' overhead rate is 0.65 of direct materials used, the overhead applied to job #123 for the period was $15,000.
Correct answer would have been $22,545 x 0.65 = $14,654.25

Accepted Answer

A) True 
 B)False

Question 8

Under-applied overhead at the end of a month:

Accepted Answer

A)   Results when actual overhead costs are less than amounts applied to work in process.
B)   Indicates a poorly designed cost accounting system.
C)   Is represented by a debit balance remaining in the Manufacturing Overhead account.
D)   Is represented by a credit balance remaining in the Manufacturing Overhead account.

Question 9

An activity-based costing system would probably not be appropriate if:

Accepted Answer

A)   A company produces more than one product line.
B)   A company produces only one product.
C)   A company is highly automated.
D)   A company has more than one production facility.

Question 10

The amount of overhead costs applied to Job #007 during March was:

Accepted Answer

A)   $90,000.
B)   $26,250.
C)   $65,000.
D)   $60,000.

Question 11

Which of the following is a characteristic of manufacturing overhead in a job order cost system?

Accepted Answer

A)   It is indirectly traceable to specific jobs or units.
B)   It includes the cost of all labor relating to manufacturing operations.
C)   It is assigned to units produced by means of an overhead application rate.
D)   It includes the cost of direct materials used and of indirect labor.

Question 12

A job cost sheet will include:

Accepted Answer

A)   All raw materials purchased.
B)   Actual overhead.
C)   Direct labor applied to production.
D)   Selling costs.

Question 13

At the end of the accounting period, applied overhead was larger than actual overhead by a material amount. The over-applied overhead should be:

Accepted Answer

A)   Treated as an extraordinary gain.
B)   Treated as an extraordinary loss.
C)   Apportioned among Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold.
D)   Ignored; actual overhead is determined only for internal control purposes.

Question 14

The journal entry made by Canfield to record the sale of the Jefferson Apartments project to King Development Company for $5,250,000 would include:

Accepted Answer

A)   A debit to Sales of $5,250,000.
B)   A debit to Cost of Goods Sold of $2,625,000.
C)   A credit to Finished Goods Inventory of $975,000.
D)   A debit to Finished Goods Inventory of $975,000.

Question 15

Overhead applied to the Jefferson Apartments project amounted to:

Accepted Answer

A)   $450,000.
B)   $650,000.
C)   $975,000.
D)   Some other amount.

Question 16

Under a job order cost system, costs are accumulated for:

Accepted Answer

A)   Each department in the production cycle.
B)   Each batch of production, known as a job or lot.
C)   Each individual unit produced.
D)   Each job supervisor.

Exam 17: Job Order Cost Systems and Overhead Allocations

If manufacturing overhead is materially over-applied, it is best to close it to:

Correct Answer
verified

Which of the following is a characteristic of manufacturing overhead in a job order cost system?

Correct Answer
verified

An activity-based costing system would probably not be appropriate if:

Correct Answer
verified

At the end of the accounting period, applied overhead was larger than actual overhead by a material amount. The over-applied overhead should be:

Correct Answer
verified

Under- and over-applied overhead What is meant by under-applied overhead? By over-applied overhead? Briefly explain each term.

Correct Answer
verified
Under-applied overhead refers to the deb...
View Answer

The journal entry made by Canfield to record the sale of the Jefferson Apartments project to King Development Company for $5,250,000 would include:

Correct Answer
verified

Correct Answer
verified

Overhead applied to the Jefferson Apartments project amounted to:

Correct Answer
verified

Under-applied overhead at the end of a month:

Correct Answer
verified

The advantage of using a predetermined overhead application rate is that:

Correct Answer
verified

A credit balance in the manufacturing overhead account at month end indicates that the actual overhead costs were less than the amount of overhead costs applied to jobs.

Correct Answer
verified

In a job cost system, the Work-in-Process Inventory controlling account may be reconciled to the total of the:

Correct Answer
verified

Correct Answer
verified

Under a job order cost system, costs are accumulated for:

Correct Answer
verified

A job cost sheet will include:

Correct Answer
verified

The amount of overhead costs applied to Job #007 during March was:

Correct Answer
verified

Exam 17: Job Order Cost Systems and Overhead Allocations

If manufacturing overhead is materially over-applied, it is best to close it to:

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of manufacturing overhead in a job order cost system?

Correct AnswerverifiedShow Answer

An activity-based costing system would probably not be appropriate if:

Correct AnswerverifiedShow Answer

At the end of the accounting period, applied overhead was larger than actual overhead by a material amount. The over-applied overhead should be:

Correct AnswerverifiedShow Answer

Under- and over-applied overhead What is meant by under-applied overhead? By over-applied overhead? Briefly explain each term.

Correct AnswerverifiedUnder-applied overhead refers to the deb...View AnswerShow Answer

The journal entry made by Canfield to record the sale of the Jefferson Apartments project to King Development Company for $5,250,000 would include:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Overhead applied to the Jefferson Apartments project amounted to:

Correct AnswerverifiedShow Answer

Under-applied overhead at the end of a month:

Correct AnswerverifiedShow Answer

The advantage of using a predetermined overhead application rate is that:

Correct AnswerverifiedShow Answer

A credit balance in the manufacturing overhead account at month end indicates that the actual overhead costs were less than the amount of overhead costs applied to jobs.

Correct AnswerverifiedShow Answer

In a job cost system, the Work-in-Process Inventory controlling account may be reconciled to the total of the:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Under a job order cost system, costs are accumulated for:

Correct AnswerverifiedShow Answer

A job cost sheet will include:

Correct AnswerverifiedShow Answer

The amount of overhead costs applied to Job #007 during March was:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Under-applied overhead refers to the deb...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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