Quizziz-Chapter 2 Job-Order Costing

Explain the concept of actual overhead.

• Usually made by management based on past experience

• Overhead that incurred during production in a certain period of time

• The amount of overhead that is estimated before the production start

• Known as indirect manufacturing costs

Explain the concept of applied overhead.

• The amount of direct manufacturing cost actually incurred involved in certain period of time.

• Planned manufacturing overhead cost.

• Scheduled manufacturing cost, actual overhead cost is still unknown.

• Estimated overhead based on actual activity level

What are the components of actual costing system?

• Actual Direct Material + Actual Direct Labour + Applied Manufacturing Overhead.

• Actual Direct Material + Actual Direct Labour

• Actual Direct Material + Actual Direct Labour + Actual Manufacturing Overhead.

• Applied Direct Material + Applied Direct Labour + Applied Manufacturing Overhead.

Which company might not apply job order costing?

• Aircrafts at Boeing

• Audit process at Price Waterhouse Coopers

• Movies produced by Universal Studios

• Beverage production by Pepsi

All characteristics of job-order costing except,

• Homogeneous products.

• Wide variety of distinct products.

• Costs accumulated by job.

• Cost per unit computed by dividing total or department job costs by units produced on that job.

A job cost sheet includes,

• Direct materials, applied overhead, administrative costs.

• Direct materials, direct labor, applied overhead.

• Direct labor, actual overhead, selling costs.

• Direct materials, direct labor, operating costs.

A source document that production managers use to request materials for production and that is used to assign materials costs to specific jobs or to overhead is a:

• Job Cost Sheet

• Production Order

• Materials Requisition

• Materials Purchase Order

An important feature of a job order costing is that each job,

• must be similar to previous jobs completed.

• has its own distinguishing characteristics.

• must be completed before a new job is accepted.

• consists of one unit of output.

Which one of the following best describes a job cost sheet?

• It is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job.

• It is used to track manufacturing overhead costs to specific jobs.

• It is used by management to understand how direct costs affect profitability.

• It is a daily form that management uses for tracking worker productivity on which employee raises are based.

The source document that records the amount of time spent on a job and his/her pay rate is the

• Job order cost sheet

• Workers time sheet

• Production order

• Labor requisition form