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WorksheetsManufacturing Overhead & Job Order Costing
Total questions: 15
Worksheet time: 5mins
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 occurred involved in certain period of time.
Plan 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.
What are the components of normal costing system?
Actual Direct Material + Actual Direct Labour = Applied Manufacturing Overhead
Actual Direct Material + Actual Direct Labour + Applied Manufacturing Overhead
Actual Direct Material + Applied Direct Labour
Actual Direct Material + Actual Direct Labour + Actual Manufacturing Overhead
Explain the advantage of normal costing compared to actual costing.
The cost determined is more accurate
Cost of product will be inconstant at a certain period
Normal costing is more appropriate is for reporting purposes
Product price can be determined in advance before the production complete
What are the adjustments for under applied overhead?
Dr. Manufacturing Overhead
Cr. Cost of Goods Sold
Dr. Finished Goods
Cr. Manufacturing Overhead
Dr. Cash
Cr. Manufacturing Overhead
Dr. Cost of Goods Sold
Cr. Manufacturing Overhead
Under applied overhead occurs when,
the actual overhead incurred is less than the overhead that has been charged to production.
actual overheads have fallen in relation to what they were expected to be.
the overhead charged to production is lower than the actual overhead incurred
the overhead charged to production is greater than the actual overhead incurred
If overhead was over applied,
actual overhead costs exceed applied overhead.
actual overhead costs exceed budgeted overhead.
applied overhead exceeds actual overhead costs.
budgeted overhead exceeds actual overhead costs.
Which of the following source documents is used to record the amount of direct materials on the job cost sheet?
Time Ticket
Material Requisition Form
Production Cost Report
Cash Book
Which of the company that 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.
