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218) Manufacturing overhead is underallocated if the amount A) estimated for the period is greater than the actual amount incurred. B) estimated for the period is less than the actual amount incurred. C) allocated during the period is less than the actual amount incurred. D) allocated during the period is greater than the actual.
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21) If a company uses departmental overhead allocation rates, then the amount of manufacturing overhead allocated to the job is equal to the plantwide overhead rate multiplied by the actual use of the cost allocation base. 22) The allocation base selected for each department should be the cost driver of.
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41) As compared to traditional volume-based costing using a single plantwide overhead rate, activity-based costing (ABC) is a more refined costing system that reduces cost distortion. 42) Traditional costing systems are generally more accurate than ABC costing. 43) It is easier to allocate indirect costs to the products that actually caused those.
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106) Here are selected data for Stehli Company: Estimated manufacturing overhead $253,500Factory utilities $30,200 Estimated labor hours 35,000Indirect labor $22,400 Actual direct labor hours 36,000Sales commissions $53,700 Estimated direct labor cost $325,000Factory rent $47,700 Actual direct labor cost $320,000Factory property taxes $28,100 Factory depreciation $66,000Indirect materials $33,000 If the company allocates.
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314) Job costing is not commonly used by service firms (such as law firms) or trades people (such as auto mechanics). 315) Service firms follow the same approach for indirect costs as manufacturing companies because they develop a predetermined indirect cost allocation rate. 316) A service firm's costs are comprised of direct.
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312) At Plastastic, Inc., the beginning balance of the work in process inventory account in April of the most recent year was $19,000. Direct materials used during April totaled $130,000. Total manufacturing labor incurred in April was $180,000, 75% of this amount represented direct labor. The predetermined manufacturing overhead rate.
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247) The following account balances at the beginning of January were selected from the general ledger ofBluestone Industries: Work in process inventory$0 Raw materials inventory$30,900 Finished goods inventory$54,800 Additional data: 1.  Actual manufacturing overhead for January amounted to $80,500. 2.  Total direct labor cost for January was $70,000; actual direct labor hours for January were 4,200. 3. .
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116) Peterson Company gathered the following information for the year ended December 31: Direct labor cost incurred for the year$180,000 Estimated manufacturing overhead costs$260,000 Estimated direct labor cost $200,000 Work in process inventory, Dec, 31$51,000 Finished goods inventory, Dec. 31$68,800 Cost of goods sold$141,000 Estimated direct labor hours 260,000 What would the predetermined manufacturing overhead rate for the.
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31) James Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $35 per machine hour, while the Sanding Department uses a departmental overhead rate of $20 per direct labor hour..
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51) Machine set-up would be considered a batch-level cost. 52) Product-level activities and costs are incurred for a particular product, regardless of the number of units or batches of the product produced. 53) The cost to research and develop, design and market new models would be considered a product-level cost..
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125) Platinum Company manufactures several different products and uses an activity-based costing system. Information from its system for the year for all products follows: The annual production and sales of one of its products, the Zinger, are 800 units. The following data relate to the production and sales of Widgets in.
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Cost of materials purchases on account$68,000 Cost of materials requisitioned (includes $4,500 of indirect)51,000 Direct labor costs incurred77,000 Manufacturing overhead costs incurred, including indirect materials97,500 Cost of goods manufactured223,000 Cost of goods sold151,000 Beginning raw materials inventory 14,500 Beginning work in process inventory29,700 Beginning finished goods inventory32,800 Predetermined manufacturing overhead rate (as % of direct labor cost)130% What is the.
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37) Cooper's Bags Company manufactures cloth grocery bags to be sold to grocery stores and other retailers. Cooper's Bags Company sells the bags in cases of 1,000 bags. The bags come in three sizes: Large, Medium, and Small. Currently, Cooper's Bags Company uses a single plantwide overhead rate to allocate.
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71) All of the following describe an ABC system except A) ABC systems may only be used by service companies. B) ABC systems can create more accurate product costs. C) ABC systems are more complex and costly than traditional costing systems. D) ABC systems are used in both manufacturing and nonmanufacturing companies. 72) Which of.
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248) The following information was gathered for the Falsetto Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours. Estimated direct labor hours 75,000 Actual direct labor hours 82,000 Estimated manufacturing overhead costs $1,275,000 Actual manufacturing overhead costs $1,335,000 Compute: a) Predetermined manufacturing overhead rate b) Manufacturing overhead allocated for the year c) Amount.
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162) Sales revenue is $750,000; actual manufacturing overhead is $120,000; allocated manufacturing overhead is $95,000; and cost of goods sold before adjustment is $380,000. What is the actual gross profit? A) $395,000 B) $370,000 C) $345,000 D) $250,000 163) Sales revenue is $725,000; allocated manufacturing overhead is $95,000; actual manufacturing overhead is $120,000; and cost.
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293) The journal entry to record $300 of depreciation expense on factory equipment involves a A) debit to Accumulated Depreciation account for $300. B) debit to Manufacturing Overhead account for $300. C) debit to Depreciation Expense account for $300. D) credit to Manufacturing Overhead account for $300. 294) Here is some basic data for Delta.
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150) The new manager at Sailboat Manufacturing oversees the manufacturing operations to ensure theeffective manufacturing process of sails to accommodate the special-orders of sails they receive for sailboats. The manager compiled a report that contained the following data: Compute the activity cost allocation rate for each of Sailboat Manufacturing's production activities.
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172) Spruce Company uses a job costing system. Spruce Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 331. Cost of goods manufactured$124,000 Cost of direct materials used42,000 Cost of direct labor ($32 per hour)76,000 Work in process inventory, August 114,500 Allocated manufacturing overhead costs for August amount.
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198) If a manufacturer finds that the amount of manufacturing overhead allocated to a job is less than the actual amount of manufacturing overhead incurred, then the jobs are overcosted. 199) Overallocated manufacturing overhead costs occur when the manufacturing overhead costs allocated are greater than the amount actually incurred. 200) If manufacturing.
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208) An underallocation of manufacturing overhead is typically corrected by decreasing Cost of Goods Sold on the income statement. 209) If jobs have been undercosted due to underallocation of manufacturing overhead, then Cost of Goods Sold (COGS) is too low and which of the following corrections must be made? A) Decrease COGS.
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81) Kramer Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee tables consists of 20 separate parts totaling $240 in direct materials, and requires 5.0 hours of machine time to produce. Additional information follows: ActivityAllocation BaseCost Allocation Rate Materials handlingNumber of parts$2.00 per.
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283) Here is some basic data for Shannon Company: Cost of materials purchases on account$72,000 Cost of materials requisitioned (includes $2,000 of indirect)53,000 Direct labor costs incurred79,000 Manufacturing overhead costs incurred, including indirect materials87,000 Cost of goods completed256,750 Cost of goods sold167,000 Beginning raw materials inventory 17,000 Beginning work in process inventory33,000 Beginning finished goods inventory35,000 Predetermined manufacturing overhead rate.
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143) Kepple Manufacturing currently uses a traditional costing system. The company allocates overhead to its two products, Zips and Dees, using a predetermined manufacturing overhead rate based on direct labor hours. Here is data related to the company's two products: The amount of manufacturing overhead that would be allocated to one.
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264) The cost of direct labor used in production is recorded as a A) debit to Work-in-Process Inventory account. B) debit to Manufacturing Overhead account. C) debit to wages expense. D) debit to wages payable. 265) The cost of direct labor used in production is recorded as a A) credit to Manufacturing Overhead account. B) credit.
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254) Actual manufacturing overhead costs are accumulated as debits to a single general ledger account called Manufacturing Overhead. 255) The entry to allocate manufacturing overhead costs to work-in-process requires a debit to Work-in Process account. 256) The Manufacturing Overhead account is credited for actual manufacturing overhead costs incurred during the period. 257) The.
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140) Calculate the unknowns for the following independent situations.   1. Selected data for Lion Corporation: Actual manufacturing overhead costs $35,400 Underallocated manufacturing overhead costs $3,000 Allocated manufacturing overhead is based on 50% of direct labor cost. a. Calculate the allocated manufacturing overhead cost. b.  Calculate the direct labor cost. 2. Selected data for Tiger Corporation: Actual manufacturing overhead.
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147) Duquesne Incorporated recently implemented an activity-based costing system. Total results from all products manufactured in the current year are: Activity cost poolTotal costTotal activity Assembly$7,5001,500machine-hours Packaging$3,150450number of orders Quality control inspections$900200number of inspections Duquesne manufactures sprinkler heads for commercial applications. Annual production and sales of one of its heads, is 2,300. The following relates.
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238) The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company: Work in process inventory$0 Raw materials inventory$28,000 Finished goods inventory$40,000 Additional data: 1.  Actual manufacturing overhead for January amounted to $62,000. 2.  Total direct labor cost for January was $63,000. 3.  The predetermined manufacturing overhead rate.
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1) When overhead is allocated to every product using the same manufacturing overhead rate, this rate is called the departmental overhead rate. 2) With increased competition, managers need more accurate estimates of product costs in order to set prices and to identify the most profitable products. 3) The plantwide overhead cost.
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91) Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each phone has $40.00 of direct materials, includes 30 parts and requires 3 hours of machine time. Additional information follows: ActivityAllocation BaseCost Allocation Rate Materials handlingNumber of parts$0.50 per part MachiningMachine hours$14.00 per machine hour AssemblingNumber of parts$1.00 per.
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126) Federer Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Estimated direct labor cost$500,000 Actual direct labor cost$465,000 Estimated manufacturing overhead costs$425,000 Actual manufacturing overhead costs$350,000 Estimated direct labor hours250,000 Actual direct.
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182) Twinkle Ornaments Company uses job costing. Twinkle Ornaments Company has two departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department. The following additional information isavailable: Estimated amountsTrimming DeptFinishing Dept Direct labor cost $320,000 $400,000.
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136) Stars and Stripes Corporation uses job costing. The following is selected financial data from the company for the most recent year. Ending raw materials inventory $18,500 Ending work in process inventory $57,300 Ending finished goods inventory $54,000 Amount of underallocated manufacturing overhead $3,200 Cost of goods sold for year $75,100.
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303) Here is selected data for Lori Corporation: Cost of raw material purchased$77,000 Cost of requisitioned direct materials 43,000 Cost of requisitioned indirect materials3,000 Direct labor80,000 Manufacturing overhead incurred 100,000 Cost of goods completed 233,500 Cost of goods sold142,000 Beginning raw materials inventory 17,000 Beginning work in process inventory32,000 Beginning finished goods inventory35,000 Manufacturing overhead allocation rate (based on direct labor).
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138) Oakland Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Estimated direct labor cost$560,000 Actual direct labor cost$475,000 Estimated manufacturing overhead costs$420,000 Actual manufacturing overhead costs$353,000 Estimated direct labor hours  200,000 Actual.
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101) Potter & Weasley Company had the following activities, estimated indirect activity costs, and allocation bases: ActivitiesIndirect Activity CostsAllocation Base Account inquiry (hours)$86,4002,700 Account billing (lines)$56,00032,000 Account verification (accounts)$38,25025,500 Correspondence (letters)$80,00010,000 Potter & Weasley uses activity based costing. The above activities are used by Departments P and Q as follows: Department PDepartment Q Account inquiry (hours)400800 Account billing (lines)10,0004,000 Account verification.
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133) Alexander Inc. uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1,500 units, while the expected annual production of Pops is 2,200 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each.
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324) The predetermined indirect cost allocation rate is computed as A) total estimated indirect costs / total estimated amount of the allocation base. B) total amount of the allocation base / total estimated indirect costs. C) total estimated indirect costs + total estimated amount of the allocation base. D) total amount of the allocation.
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11) Refined costing systems can be used to allocate any indirect costs to any cost objects. 12) Merchandising and service companies, as well as governmental agencies, can use refined cost allocation systems to provide their managers with better cost information. 13) A plantwide overhead rate is calculated by dividing the.
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274) To record depreciation on the factory equipment, the journal entry would include a A) debit to Work-in-Process Inventory account. B) debit to Manufacturing Overhead account. C) debit to Depreciation Expense account. D) debit to Accumulated Depreciation account. 275) To allocate manufacturing overhead to specific jobs, the needed journal entry would include a A) credit to.
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228) Before the year began, Plastics Manufacturing estimated that manufacturing overhead for the year would be $150,000 and that 25,000 direct labor hours would be worked. Actual results for the year included the following: Actual direct labor hours$20,000 Actual manufacturing overhead cost 182,000 If the company allocates manufacturing overhead based on direct labor.
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192) London Ceramics makes custom ceramic tiles. During March, the company started and finished Job #266. Job #266 consists of 2,500 tiles; each tile sells for $12.00. The company's records show the following direct materials were requisitioned for Job #266. Basic terra cotta tiles:  2,500 units at $4.00 per unit Specialty paint: .
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111) Hummingbird Manufacturing manufactures small parts and uses an activity-based costing system. ActivityEst. Indirect Activity CostsAllocation baseCost allocation rate Materials$75,000Material moves$3.00/move Assembling$255,000Direct labor hours$10.00/dir. labor hour Packaging$90,000# of finished units$1.00/finished unit The following parts were produced in October with the following information: Part# ProducedMaterials Costs# MovesDir. Labor Hrs. A2,250 $3,000900250 B4,000 $6,5001,700325 C4,750 $9,0002,5001,500 Total manufacturing costs for part C.
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121) Beartowne Enterprises uses an activity-based costing system to assign costs in its auto-parts division. ActivityEst. Indirect Activity CostsAllocation baseCost allocation rate Materials$60,000Material moves$5.00/move Assembling$175,000Direct labor hours$5.00/dir. labor hour Packaging$70,000# of finished units$2.50/finished unit The following units were produced in December with the following information: Part ## ProducedMaterials Costs# MovesDir. Labor Hours. Part 0011,250 $2,500100200 Part 0023,500 $6,000500300 Part.
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