College Acct 2- Chapter 2

Front

Which of the following is a disadvantage of using a single plantwide overhead rate? It simplifies the overhead allocation process., It may lead to less accurate product costing., It is easier to implement and maintain., It ensures consistent overhead application across all departments.

Back

It may lead to less accurate product costing.

Front

Which of the following is the correct formula to compute the predetermined overhead rate? Options: Predetermined overhead rate = Estimated total manufacturing overhead costs ÷ Actual total units in the allocation base. Predetermined overhead rate = Estimated total manufacturing overhead costs ÷ Estimated total units in the allocation base. Predetermined overhead rate = Actual total manufacturing overhead costs ÷ Estimated total units in the allocation base. Predetermined overhead rate = Estimated total units in the allocation base ÷ Estimated total manufacturing overhead costs.

Back

Predetermined overhead rate = Estimated total manufacturing overhead costs ÷ Estimated total units in the allocation base

Front

What predetermined overhead rates would be used in Dept. A and Dept. B, respectively?

Back

$45 and 112.5%

Front

Summers Corporation is using a predetermined overhead rate based on estimated total fixed manufacturing overhead of $502,000 and 20,000 machine-hours. Actual total fixed manufacturing overhead incurred was $525,000 with 21,150 total machine-hours. What is the amount of manufacturing overhead applied to all jobs during the period?

Back

$530,865

Front

Assigning manufacturing overhead to a specific job is complicated by all of the below except: Manufacturing overhead is an indirect cost that is either impossible or difficult to trace to a particular job. The average cost of actual fixed manufacturing overhead expenses will vary depending on how many units are produced in a period. Manufacturing overhead consists of both variable and fixed costs. Manufacturing overhead is incurred only to support some jobs.

Back

Manufacturing overhead is incurred only to support some jobs.

Front

Which of the following would usually be found on a job cost sheet under a normal cost system? Actual Manufacturing Overhead cost, Actual direct Materials cost, Both actual MOH & actual direct materials

Back

Actual direct Materials cost

Front

What is the total cost recorded on the job cost sheet for Job 711, given the following data: Direct Materials $2,785, Direct labor-hours 20 labor-hours, Direct labor wage rate $18 per labor-hour, Machine-hours 142 machine-hours, and a predetermined overhead rate of $12 per machine-hour?

Back

$4,849

Front

Which of the following statements about using a plantwide overhead rate based on direct labor is correct? Using a plantwide overhead rate based on direct labor costs will ensure that direct labor costs will be correctly traced to jobs., The labor theory of value ensures that using a plantwide overhead rate based on direct labor will do a reasonably good job of assigning overhead costs to jobs., Using a plantwide overhead rate based on direct labor-hours will ensure that direct labor costs are correctly traced to jobs., It is often overly simplistic and incorrect to assume that direct labor-hours is a company’s only manufacturing overhead cost driver.

Back

It is often overly simplistic and incorrect to assume that direct labor-hours is a company’s only manufacturing overhead cost driver.

Front

Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below:

Estimated machine-hours 72,800
Estimated variable manufacturing OH $3.50 per machine-hour
Estimated total fixed manufacturing overhead $838,800

The predetermined overhead rate for the recently completed year was closest to:

Back

$15.02 per machine-hour

Front

Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 64,900 machine-hours. The estimated variable manufacturing overhead was $4.97 per machine-hour and the estimated total fixed manufacturing overhead was $1,858,087. What was the predetermined overhead rate for the recently completed year?

Back

$33.60 per machine-hour