1. A flour manufacturer is more likely to use process costing…
1. A flour manufacturer is...
1. A flour manufacturer is more likely to use process costing than job-order costing whereas a manufacturer of customized leather jackets is more likely to use job-order costing than process costing. (Points : 2)Submitted: 8 years ago.Category: Multiple Problems
2. Normally a job cost sheet is not prepared for a job until after the job has been completed. (Points : 2)
3. If direct labor-hours is used as the allocation base in a job-order costing system, but overhead costs are not caused by direct-labor-hours, then jobs with high direct labor requirements will tend to be overcosted relative to jobs with low direct labor requirements. (Points : 2)
4. The cost of goods manufactured equals ending work in process inventory, plus the total manufacturing cost charged to jobs, less beginning work in process inventory. (Points : 2)
5. Two of the reasons why overhead may be underapplied are: (1) the estimated overhead cost may be too low, and (2) the estimated amount of the allocation base may be too high. (Points : 2)
6. Which of the following statements is correct concerning job-order costing? (Points : 2)
Job-order costing would be appropriate for a textbook publisher.
All the costs appearing on a job cost sheet are actual costs.
Indirect materials are charged to a specific job.
Job-order costing is mainly used in firms with homogeneous products such as oil refineries.
7. Which of the following would usually be found on a job cost sheet under a normal cost system?
(Points : 2)
8. What document is used to determine the actual amount of direct materials to record on a job cost sheet? (Points : 2)
bill of materials
materials purchase order
materials requisition form
9. A good description of "cost of goods manufactured" is the recorded cost of the: (Points : 2)
units completed during the period.
units started and completed during the period.
work done on all units during the period.
work done this period on units completed this period.
10. Crichman Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 14,900 hours and the total estimated manufacturing overhead was $362,070. At the end of the year, actual direct labor-hours for the year were 16,000 hours and the actual manufacturing overhead for the year was $357,070. Overhead at the end of the year was: (Points : 2)
11. Job 910 was recently completed. The following data have been recorded on its job cost sheet:
The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $15 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be: (Points : 2)
12. Heller Cannery, Inc. uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The company estimated that it would incur $510,000 in manufacturing overhead during the year and that it would work 100,000 machine-hours. The company actually worked 105,000 machine-hours and incurred $540,000 in manufacturing overhead costs. By how much was manufacturing overhead underapplied or overapplied for the year? (Points : 2)
13. Woodman Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Estimated and actual data for direct labor and manufacturing overhead for last year are as follows:
The manufacturing overhead for Woodman Company for last year was: (Points : 2)
overapplied by $20,000
overapplied by $40,000
underapplied by $20,000
underapplied by $40,000
14. At the beginning of the year, manufacturing overhead for the year was estimated to be $250,860. At the end of the year, actual direct labor-hours for the year were 20,800 hours, the actual manufacturing overhead for the year was $245,860, and manufacturing overhead for the year was underapplied by $10,820. If the predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been: (Points : 2)
22,200 direct labor-hours
20,800 direct labor-hours
21,758 direct labor-hours
22,715 direct labor-hours
15. The Silver Company uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and on machine-hours in Dept. B. At the beginning of the year, the company made the following estimates:
What predetermined overhead rates would be used in Dept A and Dept B, respectively? (Points : 2)
67% and $3.00
150% and $5.00
150% and $3.00
67% and $5.00
16. Huang Aerospace Corporation manufactures aviation control panels in two departments, Fabrication and Assembly. In the Fabrication department, Huang uses a predetermined overhead rate of $30 per machine-hour. In the Assembly department, Huang uses a predetermined overhead rate of $12 per direct labor-hour. During the current year, Job #X2984 incurred the following number of hours in each department:
What is the total amount of manufacturing overhead that Huang should have applied to Job #X2984 during the current year? (Points : 2)
17. Rediger Inc. a manufacturing company, has provided the following data for the month of June. The balance in the Work in Process inventory account was $22,000 at the beginning of the month and $17,000 at the end of the month. During the month, the company incurred direct materials cost of $55,000 and direct labor cost of $28,000. The actual manufacturing overhead cost incurred was $53,000. The manufacturing overhead cost applied to jobs was $51,000. The cost of goods manufactured for June was: (Points : 2)
18. Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $239,700 and 4,700 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,600.
The predetermined overhead rate for the year was closest to: (Points : 2)
19. Hamilton Company uses job-order costing. Manufacturing overhead is applied using a predetermined rate of 150% of direct labor cost. Any underapplied or overapplied manufacturing overhead is closed to Cost of Goods Sold at the end of each month. Additional information is available as follows:
° Job 101 was the only job in process at January 31. The job cost sheet for this job contained the following costs at the beginning of the month:
° Jobs 102, 103, and 104 were started during February.
° Direct materials requisitions for February totaled $26,000.
° Direct labor cost of $20,000 was incurred for February.
° Actual manufacturing overhead was $32,000 for February.
° The only job still in process at February 28 was Job 104, with costs of $2,800 for direct materials and $1,800 for direct labor.
For the month of February, the manufacturing overhead was: (Points : 2)
20. Mcadams Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month. In April the company completed job C21F that consisted of 18,000 units of one of the company's standard products. No other jobs were in process during the month. The total manufacturing cost on job C21F's job cost sheet was $702,000. The manufacturing overhead for the month was underapplied by $10,080. During the month, 13,000 completed units from job C21F were sold. No other products were sold during the month.
The unit product cost for job C21F is closest to: (Points : 2)