Question 1

Which of the following is incorrect regarding service firms?

Accepted Answer

A)  Each client or account is equivalent to a process in a process costing firm.
B)  The accounting system will track the time and resources spent serving a specific client or account.
C)  Managers of service firms need cost information to price their services,to budget and control costs,and to determine the profitability of different types of clients.
D)  The primary driver used to assign costs is billable hours.E) A) and C)
F) C) and D)

Question 2

Manufacturing overhead was estimated to be $500,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $450,000,actual direct labor hours were 19,000.The predetermined overhead rate would be

Accepted Answer

A)  $22.50
B)  $25.00
C)  $23.68
D)  $26.32E) B) and D)
F) All of the above

Question 3

In a service firm,the cost associated with time that employees spend on training,paperwork,and supervision is considered part of manufacturing overhead.Service firms incur many indirect costs that cannot be traced to specific clients or accounts.Examples include the nonbillable time that employees spend on training,paperwork,and supervision.These indirect costs are treated just like manufacturing overhead in a factory.

Accepted Answer

A) True 
 B)False

Question 4

When materials are placed into production,

Accepted Answer

A)  Raw Materials Inventory is debited if the materials are traced directly to the job.
B)  Work in Process Inventory is debited if the materials are traced directly to the job.
C)  Manufacturing Overhead is debited if the materials are traced directly to the job.
D)  Raw Materials Inventory is credited only if the materials are traced directly to the job,otherwise manufacturing overhead is crediteD.When direct materials are placed into production,the cost is transferred from Raw Materials Inventory with a credit,and debited to Work in Process Inventory.E) None of the above
F) B) and D)

Question 5

A job cost sheet will record the direct materials and direct labor used by the job but not the manufacturing overhead applied.A job cost sheet summarizes all of the costs incurred on a specific job.

Accepted Answer

A) True 
 B)False

Question 6

When manufacturing overhead is applied to production,which of the following accounts is credited?

Accepted Answer

A)  Raw Materials Inventory
B)  Work in Process Inventory
C)  Finished Goods Inventory
D)  Manufacturing OverheadE) All of the above
F) A) and B)

Question 7

Which of the following would be used to record the labor cost that is traceable to a specific job?

Accepted Answer

A)  Raw Materials Inventory would be debited
B)  Work in Process Inventory would be debited
C)  Manufacturing Overhead would be debited
D)  Manufacturing Overhead would be creditedE) B) and D)
F) A) and D)

Question 8

Which of the following would be used to record the labor cost that is not traceable to a specific job?

Accepted Answer

A)  Raw Materials Inventory would be debited
B)  Work in Process Inventory would be debited
C)  Manufacturing Overhead would be debited
D)  Manufacturing Overhead would be creditedE) B) and D)
F) B) and C)

Question 9

If a company uses a predetermined overhead rate,which of the following statements is correct?

Accepted Answer

A)  Manufacturing Overhead will be debited for estimated overhead
B)  Manufacturing Overhead will be credited for estimated overhead
C)  Manufacturing Overhead will be debited for actual overhead
D)  Manufacturing Overhead will be credited for actual overheadE) None of the above
F) B) and D)

Question 10

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Accepted Answer

A)  Cost of Goods Sold would be credited for $15,000
B)  Cost of Goods Sold would be credited for $5,000
C)  Cost of Goods Sold would be debited for $5,000
D)  Cost of Goods Sold would be debited for $15,000E) B) and C)
F) A) and C)

Question 11

Manufacturing overhead was estimated to be $500,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $450,000,actual direct labor hours were 19,000.The amount of manufacturing overhead applied to production would be

Accepted Answer

A)  $500,000
B)  $450,000
C)  $427,500
D)  $475,000E) All of the above
F) C) and D)

Question 12

Which of the following accounts is not affected by applied manufacturing overhead?

Accepted Answer

A)  Raw Materials Inventory
B)  Work in Process Inventory
C)  Finished Goods Inventory
D)  Cost of Goods SoldE) A) and D)
F) None of the above

Question 13

To eliminate underapplied overhead at the end of the year,Manufacturing Overhead would be credited and Cost of Goods Sold would be debited.If manufacturing overhead is underapplied during the year,Manufacturing Overhead will need to be credited to bring the account balance to zero,while Cost of Goods Sold would be debited.

Accepted Answer

A) True 
 B)False

Question 14

When disposed of,underapplied manufacturing overhead will

Accepted Answer

A)  increase Cost of Goods Sold.
B)  increase Finished Goods.
C)  decrease Cost of Goods Sold.
D)  decrease Finished Goods.E) A) and D)
F) C) and D)

Question 15

If there is a debit balance in the Manufacturing Overhead account at the end of the period,overhead was underapplied.If there is a debit balance in the Manufacturing Overhead account at the end of the period,actual is greater than applied overhead,so overhead was underapplied.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following would be used to record the property taxes on a factory building?

Accepted Answer

A)  Raw Materials Inventory would be debited
B)  Work in Process Inventory would be debited
C)  Manufacturing Overhead would be debited
D)  Manufacturing Overhead would be creditedE) A) and D)
F) All of the above

Question 17

Which of the following would be used to apply manufacturing overhead to production for the period?

Accepted Answer

A)  Raw Materials Inventory would be debited
B)  Work in Process Inventory would be debited
C)  Manufacturing Overhead would be debited
D)  Work in Process Inventory would be creditedE) C) and D)
F) A) and C)

Question 18

McGown Corp has the following information: Additional information for the year is as follows:
Compute the cost of goods manufactured.

Accepted Answer

A)  $248,000
B)  $242,000
C)  $265,000
D)  $235,000E) B) and C)
F) A) and C)

Question 19

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,actual labor hours were 21,000.The predetermined overhead rate would be

Accepted Answer

A)  $10.00
B)  $1.05
C)  $10.75
D)  $10.24E) A) and B)
F) A) and C)

Question 20

A predetermined overhead rate is calculated using which formula?

Accepted Answer

A)  Actual manufacturing overhead cost/estimated units in the allocation base
B)  Estimated units in the allocation base/estimated manufacturing overhead cost
C)  Estimated manufacturing overhead cost/actual units in the allocation base
D)  Estimated manufacturing overhead cost/estimated units in the allocation baseE) A) and B)
F) B) and D)

Exam 2: Job Order Costing

Which of the following accounts is not affected by applied manufacturing overhead?

Correct Answer
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When disposed of,underapplied manufacturing overhead will

Correct Answer
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Correct Answer
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McGown Corp has the following information: Additional information for the year is as follows: Compute the cost of goods manufactured.

Correct Answer
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When materials are placed into production,

Correct Answer
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Which of the following would be used to apply manufacturing overhead to production for the period?

Correct Answer
verified

If a company uses a predetermined overhead rate,which of the following statements is correct?

Correct Answer
verified

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Correct Answer
verified

Which of the following would be used to record the labor cost that is not traceable to a specific job?

Correct Answer
verified

A predetermined overhead rate is calculated using which formula?

Correct Answer
verified

Manufacturing overhead was estimated to be $500,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $450,000,actual direct labor hours were 19,000.The amount of manufacturing overhead applied to production would be

Correct Answer
verified

If there is a debit balance in the Manufacturing Overhead account at the end of the period,overhead was underapplied.If there is a debit balance in the Manufacturing Overhead account at the end of the period,actual is greater than applied overhead,so overhead was underapplied.

Correct Answer
verified

Which of the following is incorrect regarding service firms?

Correct Answer
verified

Which of the following would be used to record the labor cost that is traceable to a specific job?

Correct Answer
verified

When manufacturing overhead is applied to production,which of the following accounts is credited?

Correct Answer
verified

Manufacturing overhead was estimated to be $500,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $450,000,actual direct labor hours were 19,000.The predetermined overhead rate would be

Correct Answer
verified

Which of the following would be used to record the property taxes on a factory building?

Correct Answer
verified

A job cost sheet will record the direct materials and direct labor used by the job but not the manufacturing overhead applied.A job cost sheet summarizes all of the costs incurred on a specific job.

Correct Answer
verified

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,actual labor hours were 21,000.The predetermined overhead rate would be

Correct Answer
verified

Correct Answer
verified

Exam 2: Job Order Costing

Which of the following accounts is not affected by applied manufacturing overhead?

Correct AnswerverifiedShow Answer

When disposed of,underapplied manufacturing overhead will

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

McGown Corp has the following information: Additional information for the year is as follows: Compute the cost of goods manufactured.

Correct AnswerverifiedShow Answer

When materials are placed into production,

Correct AnswerverifiedShow Answer

Which of the following would be used to apply manufacturing overhead to production for the period?

Correct AnswerverifiedShow Answer

If a company uses a predetermined overhead rate,which of the following statements is correct?

Correct AnswerverifiedShow Answer

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Correct AnswerverifiedShow Answer

Which of the following would be used to record the labor cost that is not traceable to a specific job?

Correct AnswerverifiedShow Answer

A predetermined overhead rate is calculated using which formula?

Correct AnswerverifiedShow Answer

Manufacturing overhead was estimated to be $500,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $450,000,actual direct labor hours were 19,000.The amount of manufacturing overhead applied to production would be

Correct AnswerverifiedShow Answer

If there is a debit balance in the Manufacturing Overhead account at the end of the period,overhead was underapplied.If there is a debit balance in the Manufacturing Overhead account at the end of the period,actual is greater than applied overhead,so overhead was underapplied.

Correct AnswerverifiedShow Answer

Which of the following is incorrect regarding service firms?

Correct AnswerverifiedShow Answer

Which of the following would be used to record the labor cost that is traceable to a specific job?

Correct AnswerverifiedShow Answer

When manufacturing overhead is applied to production,which of the following accounts is credited?

Correct AnswerverifiedShow Answer

Manufacturing overhead was estimated to be $500,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $450,000,actual direct labor hours were 19,000.The predetermined overhead rate would be

Correct AnswerverifiedShow Answer

Which of the following would be used to record the property taxes on a factory building?

Correct AnswerverifiedShow Answer

A job cost sheet will record the direct materials and direct labor used by the job but not the manufacturing overhead applied.A job cost sheet summarizes all of the costs incurred on a specific job.

Correct AnswerverifiedShow Answer

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,actual labor hours were 21,000.The predetermined overhead rate would be

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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