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Homework  1.1 1.2  2.1 2.2  3.1 3.2  4.1 4.2 5.1 5.2  6.1 6.2  7.1  7.2  8.1  8.2  9.1   9.2  10.1  10.2  11.1  11.2  12.1 12.2  13.1  13.2  14.1  14.2  15.1   15.2
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The United States requires absorption costing for ______ financial reports.
 
External
   
Costs assigned to units of product in absorption costing include ______ manufacturing costs.
 
both variable and fixed
   
Job-order costing would most likely be used in a(n) ______.
 
construction company
   
Before moving on, you must review a resource for this question.
 
law practice
   
Categories of manufacturing costs include ______.
 
manufacturing overhead
direct labor
direct materials
   
What is the most common approach to product costing throughout the world?
 
Absorption costing
   
Costs assigned to units of product under absorption costing include ______.
 
variable manufacturing
fixed manufacturing
   
The type and quantity of each type of direct material needed to complete a unit of product is listed on the ______.
 
bill of materials
   
Companies that make many different products each period use____________-costing.
 
job order
   
True or false: Job-order costing can only be used in manufacturing firms.
 
False
   
Which of the following is not a manufacturing cost category?
 
Selling & administrative costs
   
Materials requisition forms are used for ______.
 
making journal entries in accounting records
controlling the flow of materials into production
   
Direct materials costs are recorded on the job cost sheet when the ______.
 
materials are issued to the job
   
The type and quantity of materials to be drawn from the storeroom and the job that will be charged for
the materials is specified on the ______.
 
materials requisition form
   
The document that records the materials, labor, and manufacturing overhead costs charged to a job is the ______.
 
job cost sheet
   
Companies that use job-order costing make ______.
 
many different products
   
Labor charges that cannot be easily traced to a job are considered ______.
 
indirect labor manufacturing overhead
   
Materials requisition forms are used for ______.
 
controlling the flow of materials into production
making journal entries in accounting records
   
An hour-by-hour summary of an employee's activities throughout the day is found on the
 
time ticket
   
Factory labor charges that cannot be easily traced to a job are treated as ______.
 
manufacturing overhead
   
To keep track of labor time and costs, many firms have replaced ______.
 
paper time tickets with computerized systems
   
Manufacturing overhead costs ______.
 
are indirect costs
consist of many different items
contains fixed cost
   
A job cost sheet contains ______.
 
materials costs charged to the job
labor costs charged to the job
manufacturing overhead costs charged to the job
   
Total manufacturing overhead costs tend to:
 
remain fairly constant
   
The document used to record the time workers spend on each job and task is called a ______.
 
time ticket
   
Bar codes can be used to ______.
 
automatically record and post direct labor costs to jobs
   
An essential quality of an overhead allocation base is that it must ______.
 
be common to all the company's products and services
   
Which of the following would not be a good allocation base for manufacturing overhead?
 
Accounting hours
   
Average manufacturing overhead cost per unit usually varies from one period to the next because ______.
 
fixed manufacturing overhead remains constant in total even when production changes
   
A measure such as direct labor-hours or machine hours used to assign overhead costs to products
and services is called a cost driver or a(n)
 
allocation base
   
In the formula Y = a + bx, a represents the estimated ______.
 
total fixed manufacturing overhead cost
   
Widely used allocation bases in manufacturing include ______.
 
units of product
direct labor hours
direct labor cost
machine hours
   
The average manufacturing overhead cost per unit tends to ______.
 
vary from one period to the next
   
Overhead application is the process of ______.
 
assigning manufacturing overhead cost to jobs
   
The process used to assign overhead costs to products is called overhead
 
allocation
   
A normal cost system assigns overhead to jobs using ______.
 
a predetermined overhead rate
   
The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find ______.
 
overhead applied to the job
   
In the formula y = a + bx, x represents the estimated ______.
 
total amount of the allocation base
   
The formula for applying overhead to a specific job is ______.
 
predetermined overhead rate × amount of allocation base incurred by job
   
Murphy Manufacturing estimated total manufacturing overhead for 2017 to be $100,000 and uses direct labor-hours
as the allocation base. They estimated that 5,000 hours would be used. Actual overhead for 2017 was $120,000
and actual direct labor-hours were 7,500.
How much overhead was applied to a job completed during 2017 that used 200 direct labor-hours?
 
$4,000
   
Widely used allocation bases in manufacturing include ______.
 
direct labor hours
machine hours
units of product
direct labor cost
   
Smith, Inc. uses a job-order costing system with the predetermined overhead rate of $12 per machine-hour.
The job cost sheet for Job #42A listed $12,000 in direct labor cost, $18,000 in direct materials cost, 1,200
direct labor-hours and 1,100 machine-hours. The total cost of Job #42A is $
 
$43,200
   
One reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors.
 
true
   
The total cost of a job includes ______.
 
direct materials cost
applied manufacturing overhead
direct labor cost
   
Jones Company uses a job-order costing system with a predetermined overhead rate of 120% of direct labor cost.
The job cost sheet for Job #420 showed that Jones Company spent $4,000 on direct materials and $5,000 on direct
labor on the job. What is the total cost of Job #420?
 
$15,000
   
Why do companies use a predetermined overhead rate rather than an actual overhead rate?
 
An actual overhead rate is not known until the end of the period.
   
The total cost of a job is calculated by adding the total of direct labor cost, direct materials cost and ______.
 
applied manufacturing overhead cost
   
To calculate the unit product cost using the job cost sheet ______.
 
divide the total job cost by the number of units produced
   
Jones Company uses a job-order costing system with a predetermined overhead rate of 120% of direct labor cost.
The job cost sheet for Job #420 listed $4,000 in direct materials cost and $5,000 in direct labor cost to manufacture
7,500 units. The unit cost of Job #420 is ______.
 
$2.00
   
In the formula Y = a + bX, b represents the estimated ______.
 
variable manufacturing overhead cost per unit
   
Why is the unit product cost different from the cost that would be incurred if another (additional) unit were produced?
 
The cost to produce another unit is the incremental or marginal cost.
   
Job XYZ has a total manufacturing cost of $600. If the mark-up percentage is 40%, the job will sell for $
 
$840
   
A job-order costing system may inaccurately assign costs to jobs due to ______.
 
an inappropriate allocation base
   
The unit product cost is the same as the ______.
 
total job cost divided by number of units
average product cost per unit
   
Cost-plus pricing occurs when ______.
 
a markup percentage is added to the cost of a job
   
A cost driver is ______.
 
a factor that causes overhead costs to occur
   
When all overhead is assigned using direct-labor hours, the company has chosen to use a(n
 
plantwide or single
   
A multiple predetermined overhead rate system is more accurate than a plantwide overhead rate system because it:
 
reflects differences in how overhead costs are incurred within departments
   
A single predetermined overhead rate is called a(n)
 
plantwide
   
Which of the following is only true in a multiple predetermined overhead rate system?
 
Each production department may have its own predetermined overhead rate.
   
When a predetermined markup is applied to a base to determine the target selling price, the company is using______pricing
 
cost-plus
   
an allocation base should be
 
a cost driver
   
The appeal of using predetermined departmental overhead rates is they presumably provide ______.
a more accurate accounting of costs
 
enhanced information for decision making
   
The root cause of inaccurately assigning costs to jobs is generally due to poor tracking of direct labor costs.
 
false
   
When all overhead is assigned using direct-labor hours, the company has chosen to use a(n)________predetermined overhead rate.
 
plantwide
   
When a company uses cost-plus pricing, they consider both the costs of production and the desired profit.
 
false
   
Allocation bases that do not drive overhead costs ______.
 
will not accurately measure the cost of overhead used
   
Using a departmental approach to overhead application results in ______ as using a plantwide rate.
 
a different selling price
   
When compared to a departmental approach, using activity-based costing using results in ______ overhead rates.
 
more
   
The adjustment for overapplied overhead ______.
 
decreases cost of goods sold and increases net income
   
When a company creates overhead rates based on the actions it performs, it is employing an approach called______-costing
 
activity based
   
When all of a company's job cost sheets are viewed collectively, they form what is known as a(n) ______.
 
subsidiary ledger
   
The adjustment for underapplied overhead ______.
 
increases cost of goods sold and decreases net income
   
Which of the following would not be considered a direct labor cost in a service firm that uses job-order costing?
 
The salary of the manager at a hair salon
   
What is the most common approach to product costing throughout the world?
 
Absorption costing
   
Costs assigned to units of product in absorption costing include ______ manufacturing costs.
 
both variable and fixed manufacturing
   
Job-order costing would most likely be used in a(n) ______.
 
construction company
   
True or false: Job-order costing can only be used in manufacturing firms.
 
false
   
Categories of manufacturing costs include ______.
 
direct materials, direct labor, manufacturing overhead
   
The United States requires absorption costing for ______ financial reports.
 
external
   
All manufacturing costs are assigned to units of product and all nonmanufacturing costs are treated as period cost under costing
 
absorption
   
Companies that use job-order costing make ______.
 
many different products
   
A service firm that would most likely use job-order costing is a ______.
 
law practice
   
Which of the following is not a manufacturing cost category?
 
Selling & administrative costs
   
The type and quantity of each type of direct material needed to complete a unit of product is listed on the ______.
 
bill of materials
   
Companies that make many different products each period use ______________ costing
 
job-order
   
The type and quantity of materials to be drawn from the storeroom and the job that will be charged
for the materials is specified on the ______.
 
materials requisition form
   
Direct materials costs are recorded on the job cost sheet when the ______.
 
materials are issued to the job
   
The difference between direct labor and indirect labor is that direct labor ______.
 
can be easily traced to jobs, while indirect labor cannot
   
A bill of materials contains the ______.
 
quantity of each direct material needed to complete a unit of product
type of each direct material needed to complete a unit of product
   
Materials requisition forms are used for ______.
 
Making journal entries in accounting records
Controlling the flow of materials into production
   
The document that records the materials, labor, and manufacturing overhead costs charged to a job is the ______.
 
job cost sheet
   
Factory labor charges that cannot be easily traced to a job are treated as ______
 
manufacturing overhead
   
The type and quantity of materials to be drawn from the storeroom and the job that will be charged for
the materials is specified on the ______
 
materials requisition form
   
A job cost sheet contains ______.
 
materials costs charged to the job
manufacturing overhead costs charged to the job
labor costs charged to the job
   
To keep track of labor time and costs, many firms have replaced ______.
 
paper time tickets with computerized systems
   
Labor costs that are easily traced to a job are called ______ laor costs
 
direct
   
Manufacturing overhead consists of ______.
 
many different kinds of indirect costs
   
The average manufacturing overhead cost per unit tends to ______.
 
vary from one period to the next
   
Bar codes can be used to ______.
 
automatically record and post direct labor costs to jobs
   
Labor charges that cannot be easily traced to a job are considered ______.
 
manufacturing overhead
indirect labor
   
Manufacturing overhead ______.
 
consists of many different types of costs
contains fixed costs
is an indirect cost
   
Total manufacturing overhead costs tend to:
 
remain fairly constant
   
An allocation base is a(n) ______.
 
measure of activity used to assign overhead costs to products and services
   
Which of the following would not be a good allocation base for manufacturing overhead?
 
Accounting hours
   
Factory labor charges that cannot be easily traced to a job are treated as ______.
 
manufacturing overhead
   
In the formula Y = a + bX, a represents the estimated ______.
 
total fixed manufacturing overhead cost
   
A measure such as direct labor-hours or machine hours used to assign overhead costs to products and
services is called a cost driver or a(n)
 
allocation base
   
Overhead application is the process of ______
 
assigning manufacturing overhead cost to jobs
   
Widely used allocation bases in manufacturing include ______.
 
direct labor hours
units of product
machine hours
direct labor cost
   
The formula for applying overhead to a specific job is ______.
 
predetermined overhead rate × amount of allocation base incurred by job
   
Manufacturing overhead costs ______. consist of many different items
 
are indirect costs
   
The process used to assign overhead costs to products is called overhead
 
allocation
   
The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find ______.
 
overhead applied to the job
   
A normal costing system applies overhead by job by multiplying a(n) ______ ______ rate by the _______ amount of the allocation base incurred by the job.
 
predetermined overhead, actual
   
A normal cost system assigns overhead to jobs using ______.
 
a predetermined overhead rate
   
Why do companies use a predetermined overhead rate rather than an actual overhead rate?
 
An actual overhead rate is not known until the end of the period.
   
The total cost of a job is calculated by adding the total of direct labor cost, direct materials cost and ______.
 
applied manufacturing overhead cost
   
The total cost of a job includes ______.
 
Direct Materials Cost
Direct Labor Cost
Applied Manufacturing Overhead
   
Cost-plus pricing occurs when ______.
 
a markup percentage is added to the cost of a job
   
To calculate the unit product cost using the job cost sheet ______.
 
divide the total job cost by the number of units produced
   
The root cause of inaccurately assigning costs to jobs is generally due to poor tracking of direct labor costs.
 
false
   
An allocation base should be ______.
 
cost driver
   
Typical cost drivers include ______
 
machine-hours, flight-hours, computer time
   
The adjustment for overapplied overhead ______.
 
decreases cost of goods sold and increases net income
   
Which of the following would be considered direct materials in a service firm that uses job-order costing?
 
paperwork at a law firm

Homework  1.1 1.2  2.1 2.2  3.1 3.2  4.1 4.2 5.1 5.2  6.1 6.2  7.1  7.2  8.1  8.2  9.1   9.2  10.1  10.2  11.1  11.2  12.1 12.2  13.1  13.2  14.1  14.2  15.1   15.2
Learnsmart  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15   |  Exam  1  2  3  4  5  6  7  8  9  10  11  12   13  14  15  |  Final Exam 1   2    Homework Help?