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If actual overhead is greater than applied overhead, then the variance is called ___________________.

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underappli...

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The unit cost of a job consists of the total costs of


A) materials used on the job.
B) labor worked on the job.
C) applied overhead.
D) All of these are correct.
E) None of these are correct.

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Brillant Design Company makes custom chairs for individual customers.On October 1, there was one job in process, Job 243, with a cost of $1,300.Jobs 244, 245, and 246 were started during the month of October.Data on costs added during the month are as follows: ā€‹ ā€‹ Brillant Design Company makes custom chairs for individual customers.On October 1, there was one job in process, Job 243, with a cost of $1,300.Jobs 244, 245, and 246 were started during the month of October.Data on costs added during the month are as follows: ā€‹ ā€‹ Overhead is applied to production at the rate of 70% of direct labor cost.Job 245 was completed on October 14 and the client was billed at cost plus 55%.All other jobs remained in process. ā€‹ What is the price of Job 245? A) $20,204.20 B) $10,627.70 C) $22,310.50 D) $18,761.20 E) $14,399.50 Overhead is applied to production at the rate of 70% of direct labor cost.Job 245 was completed on October 14 and the client was billed at cost plus 55%.All other jobs remained in process. ā€‹ What is the price of Job 245?


A) $20,204.20
B) $10,627.70
C) $22,310.50
D) $18,761.20
E) $14,399.50

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Which of the following is true about the job-order cost sheet?


A) It is prepared for every job.
B) It is subsidiary to the work-in-process account.
C) It is the primary document for accumulating all costs related to a particular job.
D) It contains all information pertinent to a job.
E) All of these are correct.

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There are other source documents besides the time ticket and the material requisition form used to fill out the job-order cost sheet.

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At the beginning of the year, Zinc Inc.estimated that overhead would be $115,000 and direct labor hours would be 23,000.At the end of the year, actual overhead was $175,900 and there were actually 35,000 direct labor hours. What is the overhead variance?


A) $600 overapplied
B) $900 underapplied
C) $300 underapplied
D) $700 overapplied
E) $800 underapplied

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What account is credited when goods are sold?


A) Accounts receivable
B) Cost of Goods Sold
C) Finished Goods
D) Raw materials
E) Work-in-process

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Ending Work-in-Process for Lee's Carpentry was $64,000 for January.Direct labor and direct materials together for the month were $39,000.Direct labor was twice as much as direct materials.The overhead rate is 70% of direct labor.No jobs were finished during the month.What was beginning Work-in-Process?


A) $6,800
B) $25,000
C) $4,250
D) $15,250
E) $0

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The predetermined overhead rate is usually calculated


A) at the end of each month.
B) at the beginning of each month.
C) at the beginning of the year.
D) at the end of the year.

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Which of the following is not a manufacturing cost element?


A) direct materials
B) direct labor
C) advertising expense
D) overhead
E) All of these are correct.

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Carlson Company uses a predetermined rate to apply overhead.At the beginning of the year, Carlson estimated its overhead costs at $240,000, direct labor hours at 40,000, and machine hours at 10,000.Actual overhead costs incurred were $249,280, actual direct labor hours were 41,000, and actual machine hours were 11,000. If the predetermined overhead rate is based on machine hours, what is the total amount credited to the plantwide overhead account for the year for Carlson?


A) $249,280
B) $246,000
C) $240,000
D) $264,000

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Warwick Company has the following transactions for the month of September: Warwick Company has the following transactions for the month of September: Balances at the beginning of the month were: -What is the ending balance in Work-in-Process? A) $162,912 B) $113,083 C) $166,414 D) $123,870 E) $0 Balances at the beginning of the month were: Warwick Company has the following transactions for the month of September: Balances at the beginning of the month were: -What is the ending balance in Work-in-Process? A) $162,912 B) $113,083 C) $166,414 D) $123,870 E) $0 -What is the ending balance in Work-in-Process?


A) $162,912
B) $113,083
C) $166,414
D) $123,870
E) $0

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Mitchell's Softball Gloves Company estimated the following at the beginning of the year: Mitchell's Softball Gloves Company estimated the following at the beginning of the year: Mitchell uses departmental overhead rates.In the assembly department, direct labor hours are used to apply overhead.Machine hours are used to apply overhead in the testing department. Actual data for August is as follows: Mitchell decides to continue using departmental overhead rates.If a job spends 4 hours in assembly and 3 hours in testing, what is the amount of overhead charged to the job? A) $22 B) $20 C) $28 D) $50.54 E) None of these. Mitchell uses departmental overhead rates.In the assembly department, direct labor hours are used to apply overhead.Machine hours are used to apply overhead in the testing department. Actual data for August is as follows: Mitchell's Softball Gloves Company estimated the following at the beginning of the year: Mitchell uses departmental overhead rates.In the assembly department, direct labor hours are used to apply overhead.Machine hours are used to apply overhead in the testing department. Actual data for August is as follows: Mitchell decides to continue using departmental overhead rates.If a job spends 4 hours in assembly and 3 hours in testing, what is the amount of overhead charged to the job? A) $22 B) $20 C) $28 D) $50.54 E) None of these. Mitchell decides to continue using departmental overhead rates.If a job spends 4 hours in assembly and 3 hours in testing, what is the amount of overhead charged to the job?


A) $22
B) $20
C) $28
D) $50.54
E) None of these.

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Which of the following is false about actual overhead while using normal costing?


A) Actual overhead is recorded to the overhead control account during the period.
B) If the actual overhead is greater than the applied overhead then the overhead is underapplied
C) Overhead variance is the difference between actual overhead and applied overhead.
D) It is divided into many smaller accounts such as indirect labor, supplies, etc.
E) None of these.

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Manufacturing and service firms producing unique products or services require job-order accounting systems.

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Which of the following is reflected in the labor cost flows of a company?


A) Direct labor cost
B) Overtime labor cost
C) Administration cost
D) Both indirect and direct labor cost
E) Administration cost and indirect cost

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At the beginning of the year, Forest Corporation estimates overhead will be $175,000.If the actual overhead for the year is $165,000 and the applied overhead for the year is $120,000, what is the journal entry needed to reconcile the overhead variance? Assume that the overhead variance is immaterial.


A)
At the beginning of the year, Forest Corporation estimates overhead will be $175,000.If the actual overhead for the year is $165,000 and the applied overhead for the year is $120,000, what is the journal entry needed to reconcile the overhead variance? Assume that the overhead variance is immaterial. A) B) C) D) E) None of these

B)
At the beginning of the year, Forest Corporation estimates overhead will be $175,000.If the actual overhead for the year is $165,000 and the applied overhead for the year is $120,000, what is the journal entry needed to reconcile the overhead variance? Assume that the overhead variance is immaterial. A) B) C) D) E) None of these

C)
At the beginning of the year, Forest Corporation estimates overhead will be $175,000.If the actual overhead for the year is $165,000 and the applied overhead for the year is $120,000, what is the journal entry needed to reconcile the overhead variance? Assume that the overhead variance is immaterial. A) B) C) D) E) None of these
D)
At the beginning of the year, Forest Corporation estimates overhead will be $175,000.If the actual overhead for the year is $165,000 and the applied overhead for the year is $120,000, what is the journal entry needed to reconcile the overhead variance? Assume that the overhead variance is immaterial. A) B) C) D) E) None of these

E) None of these

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Costs reported on the financial statements must be estimated costs.

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What type of event would cause two separate journal entries to be made?


A) Transferring the good to Finished Goods
B) Applied overhead to production based on direct labor hours
C) Transferring the goods from Raw Materials to Work-in-Process
D) Closing overapplied overhead to Cost of Goods Sold
E) Selling the good

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Which of the following statements is false?


A) Actual overhead costs always enter the Work-in-Process account.
B) The cost of a job includes direct materials, direct labor, and applied overhead.
C) The use of normal costing means that overhead is applied to each job using a predetermined rate.
D) Indirect labor is assigned as a part of overhead.
E) None of these are correct.

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