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1. Product costing provides useful cost information for all the following except:
2. The key distinction between job costing and process costing is:
3. Standard costs are:
4. Which of the following can produce unit product costs that fluctuate significantly?
5. A normal costing system uses actual costs for direct materials and direct labor, and:
6. Product costing system design or selection:
7. If a firm is following the cost leadership strategy, and overhead accounts are complex,
then the:
8. The three major differences between process and job order costing systems are those
relating to:
9. The two main advantages of using predetermined factory overhead rates are to provide
more accurate unit cost information and to:
10. The ideal criterion for choosing an allocation base for overhead is:
11. Volume-based rates are appropriate in situations where the incurrence of factory
overhead:
12. Departmental rates are appropriate when all the following exist except:
13. Volume-based cost accounting systems often do not provide sufficiently accurate product
costing because they:
14. Under job costing, factory overhead costs are assigned to products or services using
labor or machine hours which are:
15. Operation costing is a hybrid costing system for products and services that uses:
16. Cost system design/selection should consider all except which one of the following?
17. Which one of the following documents records and summarizes the costs of direct
materials, direct labor, and factory overhead for a particular job?
18. Which one of the following is used by the production department supervisor to request
the materials for production?
19. Which one of the following is the amount of factory overhead applied that exceeds the
actual factory overhead cost?
20. Which one of the following is the amount that actual factory overhead exceeds the
factory overhead applied?
21. The total cost of direct materials, direct labor, and factory overhead transferred from the
Work-in-Process Inventory account to the Finished Goods Inventory account during an
accounting period is:
22. A hybrid costing system that uses job costing to assign direct materials costs, and
process costing to assign conversion costs to products or services is:
23. The journal entry required to record factory depreciation includes:
24. Factory overhead can be over- or under-applied because:
25. When completed units are transferred to the warehouse:
26. When completed units are sold:
27. Which of the following industries is more suitable for using a job costing system?
28. The system where the cost of a product or service is obtained by assigning costs to
masses of similar units in each department and then computing unit cost on an average basis is
called:
29. All of the following items are debited to the Work-in-Process Inventory account except:
30. Normal spoilage is defined as:
31. Abnormal spoilage:
32. For job costing in service industries, overhead costs are usually applied to jobs based on:
33. Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead
rate based on direct labor hours to apply overhead to individual jobs. For the current year,
estimated direct labor hours were 114,000 and estimated factory overhead was $695,400. The
following information was for September. Job X was completed during September, while Job Y
was started but not finished.
September 1, inventories:
Materials $9,000
Work-in-process (All Job X) 37,400
Finished goods 80,400
Materials purchases $125,000
Direct materials requisitioned:
Job X $54,500
Job Y 40,000
Direct labor hours:
Job X 5,000
Job Y 4,500
Labor costs incurred:
Direct labor ($6.00 per hour) $57,000
Indirect labor 16,200
Factory supervisory salaries 7,200
Rental costs:
Factory $8,400
Administrative offices 2,200
Total equipment depreciation costs:
Factory $9,000
Administrative offices 1,900
Indirect materials used $14,400
The total cost of Job X is:
34. Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead
rate based on direct labor hours to apply overhead to individual jobs. For the current year,
estimated direct labor hours were 114,000 and estimated factory overhead was $695,400. The
following information was for September. Job X was completed during September, while Job Y
was started but not finished.
September 1, inventories:
Materials $9,000
Work-in-process (All Job X) 37,400
Finished goods 80,400
Materials purchases $125,000
Direct materials requisitioned:
Job X $54,500
Job Y 40,000
Direct labor hours:
Job X 5,000
Job Y 4,500
Labor costs incurred:
Direct labor ($6.00 per hour) $57,000
Indirect labor 16,200
Factory supervisory salaries 7,200
Rental costs:
Factory $8,400
Administrative offices 2,200
Total equipment depreciation costs:
Factory $9,000
Administrative offices 1,900
Indirect materials used $14,400
The total factory overhead applied during September is:
