7-61
68.
The journal entry to write-off a significant underapplied overhead balance at the end of an
accounting period is:
A.
Applied Manufacturing Overhead
XXX
Cost of Goods Sold
XXX
Manufacturing Overhead Control
XXX
B.
Applied Manufacturing Overhead
XXX
Cost of Goods Sold
XXX
Manufacturing Overhead Control
XXX
C.
Applied Manufacturing Overhead
XXX
Work-In-Process Inventory
XXX
Finished Goods Inventory
XXX
Cost of Goods Sold
XXX
Manufacturing Overhead Control
XXX
D.
Applied Manufacturing Overhead
XXX
Work-In-Process Inventory
XXX
Finished Goods Inventory
XXX
Cost of Goods Sold
XXX
Manufacturing Overhead Control
XXX
69.
If a company multiplies its predetermined overhead rate by the actual activity level of its
allocation base, it is using:
70.
If a company multiplies its actual overhead rate by the actual activity level of its allocation
base, it is using:
7-64
71.
The journal entry to write-off an insignificant overapplied overhead balance at the end of
an accounting period for a service firm is:
A.
Applied Manufacturing Overhead
XXX
Cost of Services Billed
XXX
Manufacturing Overhead Control
XXX
B.
Applied Manufacturing Overhead
XXX
Cost of Services Billed
XXX
Manufacturing Overhead Control
XXX
C.
Applied Manufacturing Overhead
XXX
Work-In-Process Inventory
XXX
Finished Goods Inventory
XXX
Cost of Services Billed
XXX
Manufacturing Overhead Control
XXX
D.
Applied Manufacturing Overhead
XXX
Work-In-Process Inventory
XXX
Finished Goods Inventory
XXX
Cost of Services Billed
XXX
Manufacturing Overhead Control
XXX
72.
7-66
73.
74.
75.
The predetermined overhead rate for manufacturing overhead for 2016 is $4.00 per direct
labor hour. Employees are expected to earn $5.00 per hour and the company is planning
on paying its employees $100,000 during the year. However, only 75% of the employees
are classified as “direct labor.” What was the estimated manufacturing overhead for
2016?
76.
77.
Before prorating the manufacturing overhead costs at the end of 2016, the Cost of Goods
Sold and Finished Goods Inventory had applied overhead costs of $57,500 and $20,000 in
them, respectively. There was no Work-in–Process at the beginning or end of 2016. During
the year, manufacturing overhead costs of $74,000 were actually incurred. The balance in
the Applied Manufacturing Overhead was $77,500 at the end of 2016. If the under– or
overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts,
how much will be the Cost of Goods Sold after the proration?
78.
In a traditional job order costing system, the issue of indirect materials to a production
department increases: (CPA adapted)
79.
Which of the following actions do not cause an impropriety in job costing?
80.
Which of the following approaches allocates overhead by multiplying a predetermined
overhead rate × actual activity?
81.
Which of the following approaches allocates overhead by multiplying an actual overhead
rate × actual activity?
82.
Which of the following approaches allocates overhead by multiplying a predetermined rate
× standard activity?
83.
Reyes Corporation applies overhead using a normal costing approach based upon
machine-hours. Budgeted factory overhead was $266,400, budgeted machine-hours were
18,500. Actual factory overhead was $287,920, actual machine-hours were 19,050. How
much overhead would be applied to production?
84.
Reyes Corporation applies overhead using a normal costing approach based upon
machine-hours. Budgeted factory overhead was $266,400, budgeted machine-hours were
18,500. Actual factory overhead was $287,920, actual machine–hours were 19,050. How
much is the over– or underapplied overhead?
85.
86.
Reyes Corporation applies overhead using an actual costing approach. Budgeted factory
overhead was $266,400, budgeted machine-hours were 18,500. Actual factory overhead
was $287,920, actual machine-hours were 19,050. How much is the over– or underapplied
overhead?
87.
Reyes Corporation applies overhead using a normal costing approach based upon
machine-hours. Budgeted factory overhead was $232,750, budgeted machine-hours were
17,500. Actual factory overhead was $227,830, actual machine–hours were 16,150. How
much overhead would be applied to production?
88.
Reyes Corporation applies overhead using a normal costing approach based upon
machine-hours. Budgeted factory overhead was $232,750, budgeted machine-hours were
17,500. Actual factory overhead was $227,830, actual machine-hours were 16,150. How
much is the over– or underapplied overhead?
89.