49.
Marty’s Metal Shop uses a job order cost system. It applies overhead to jobs at a rate of
175% of direct labor costs. Job No. 2617 required $800 in direct labor costs. The job was
initially budgeted to require $850 in direct labor costs. Overhead applied to Job No. 2617
during the period amounted to:
50.
Refer to the above data. If Riverview applies overhead using a predetermined rate based on
machine-hours, what amount of overhead will be assigned to a unit of output which
requires 0.5 machine hours and 0.25 labor hours to complete?
51.
Refer to the above data. If Riverview applies overhead using a predetermined rate based on
labor-hours, what amount of overhead will be assigned to a unit of output which requires
0.5 machine hours and 0.25 labor hours to complete?
52.
A job cost sheet usually contains a record of each of the following
except
:
53.
Which of the following costing systems would always use job cost sheets?
54.
A job cost sheet should:
55.
The document that provides information for the cost of goods manufactured is:
56.
A job cost sheet will include:
57.
A job order cost system traces direct materials cost to a particular job by means of:
58.
At the end of the accounting period, applied overhead was larger than actual overhead by a
material amount. The over-applied overhead should be:
59.
In a job cost system, the Work-in-Process Inventory controlling account may be reconciled
to the total of the:
60.
The year-end balance in the Materials Inventory controlling account is equal to:
61.
The employee time card for John Winter indicates that he spent last week performing
routine maintenance on factory machinery. Payments made to Winter for last week’s work
should be:
62.
When a job is completed:
63.
Debits to the Manufacturing Overhead account record:
64.
Under-applied overhead at the end of a month:
65.
If manufacturing overhead is
materially
over-applied, it is best to close it to:
66.
The account Work in Process Inventory:
67.
The account Finished Goods:
17–31
68.
The Work in Process account in a job order cost accounting system will be debited for:
Capri Boat Corporation uses a job order cost system and applies overhead based on a
percentage of direct labor cost. Cost flows through the Work in Process Inventory account
during March are given below:
Only Job #007 was still in process at the end of March and this job had been charged with
$40,000 in direct materials cost.
69.
Refer to the information above. The amount of direct materials cost charged to completed
jobs during March was:
70.
Refer to the information above. The predetermined overhead application rate at Capri Boat
is what percentage of direct labor costs?
17–33
71.
Refer to the information above. The amount of overhead costs applied to Job #007 during
March was:
72.
Refer to the information above. The journal entry which accounts for the $300,000
transferred out of Work in Process account includes a debit of $300,000 to:
Canfield Construction applies overhead to its projects at a rate of $65 per direct labor hour.
Laborers are paid an average rate of $30 per hour. The Jefferson Apartments project was
charged a total of $1,200,000 in direct materials and $450,000 in direct labor costs.
73.
Refer to the information above. Overhead applied to the Jefferson Apartments project
amounted to:
74.
Refer to the information above. The journal entry to transfer the completed Jefferson
Apartments project to Canfield’s finished goods inventory would include:
75.
Refer to the information above. 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:
76.
Which of the following statements is true about activity-based costing?
77.
In an activity-based costing system, manufacturing overhead costs are divided into
separate:
78.
Benefits of activity-based costing include all of the following
except
:
79.
An activity-based costing system would probably
not
be appropriate if:
80.
An activity base is said to be a “driver” of overhead costs when the activity base:
17–38
81.
Which of the following would likely be the most appropriate cost driver to allocate
machinery set-up costs to products?
Machine hours.
Direct labor hours.
Number of production runs.
Repair work orders.
Starbright manufactures children car seats, strollers, and baby swings. Starbright’s
manufacturing costs are budgeted as follows:
Factory utilities $105,000
Factory foremen salaries $75,000
Machinery setup costs $30,000
Total manufacturing overhead $210,000
The company uses activity-based costing to allocate its manufacturing overhead costs to
products based on the following schedule:
During the current month, the following levels of activities were incurred:
82.
What are the setup costs allocated to Strollers during the current month?
83.
What are the factory foremen salaries allocated to Car Seats during the current month?
84.
What are the factory utilities costs allocated to Baby Swings during the current month?
85.
What are the total manufacturing overhead costs allocated to the Baby Swings for the
current month?