ACC concept check Q's

The management of Blue Ocean Company estimates that 50,000 machine-hours will be required to support the production planned for the year. It also estimates $300,000 of total fixed manufacturing overhead cost for the coming year and $4 of variable manufacturing overhead cost per machine-hour. What is the predetermined overhead rate? multiple choice $6.00 per machine hour $8.00 per machine hour $10.00 per machine hour $12.50 per machine hour

$10.00 per machine hour

Knowledge Check 02 Wilson Products uses a plantwide predetermined overhead rate of $10 per direct labor-hour. Direct material and direct labor associated with Job X23 are $4,000 and $1,200, respectively. If Job X23 used 100 direct labor-hours to produce 50 audio controllers, what is this job's unit product cost (per audio controller)? multiple choice $52 $62 $100 $124

$124

Spartan Corporation estimates that it will incur $200,000 of total manufacturing overhead cost at an estimated activity level of 10,000 direct labor-hours. What is the amount of manufacturing overhead that would be applied to a job that required 200 direct labor-hours? multiple choice $2,000 $4,000 $6,000 $10,000

$4,000

Wilson Products uses a plantwide predetermined overhead rate of $10 per direct labor-hour. Direct material and direct labor associated with Job X23 are $4,000 and $1,200, respectively. If Job X23 used 100 direct labor-hours, what is the total cost assigned to this job? multiple choice $5,000 $5,200 $6,000 $6,200

$6,200

The direct materials required to manufacture each unit of product are listed on a ________. multiple choice bill of materials materials requisition form materials ticket job order cost sheet

Bill of materials

What is the term used when a company applies less overhead to production than it actually incurs? multiple choice Misapplied Overapplied Unadjusted Underapplied

Underapplied

A normal cost system applies overhead to jobs ________. multiple choice by multiplying a predetermined overhead rate by the estimated amount of the allocation base incurred by the job by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job using the actual amount of overhead caused by each job using the normal amount of overhead caused by each job

by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job

The adjustment for overapplied overhead ________. multiple choice decreases cost of goods sold and decreases net operating income decreases cost of goods sold and increases net operating income increases cost of goods sold and decreases net operating income increases cost of goods sold and increases net operating income

decreases cost of goods sold and increases net operating income

Companies can improve job cost accuracy by using ________. multiple choice a plantwide overhead rate direct-labor hours to apply overhead multiple predetermined overhead rates number of units in the job to apply overhead

multiple predetermined overhead rates

When all of a company's job cost sheets are viewed collectively they form what is known as a ________. multiple choice general ledger inventory job-order costing system subsidiary ledger

subsidiary ledger

In the cost formula (Y = a + bX) that is used to estimate the total manufacturing overhead cost for a given period, the letter "a" refers to the estimated ________. multiple choice total manufacturing overhead cost total fixed manufacturing overhead cost variable manufacturing overhead cost per unit of the allocation base total amount of the allocation base

total fixed manufacturing overhead cost