ACCT2023 ch2 connect

A, B

A bill of materials contains the A. type of each direct material needed to complete a unit of a product B. quantity of each direct material needed to complete a unit of product C. typer of materials to be drawn from the storeroom D. quantity of materials to be drawn from the storeroom

cost driver

A factor that causes overhead costs to occur

A, B, D

A job cost sheet contains A. labor costs charged to the job B. manufacturing overhead costs charged to the job C. selling costs charged to the job D. materials costs charged to the job E. the selling price of the job

allocation base

A measure such as direct labor hours or machine hours used to assign overhead costs to products and services is a cost driver or a(n) (2 words)

overhead costs are incurred within departments

A multiple predetermined overhead rate system is more accurate than a plant wide overhead rate system because it reflects differences in how _______________________________________________ (6 words)

predetermined overhead; actual

A normal costing system applied overhead by job by multiplying a(n) _____________________________ (2 words) rate by the ______________ (1 word) amount of the allocation base incurred by the job

estimated; estimated

A predetermined overhead rate is calculated by dividing the ______ total manufacturing overhead by the _____ total amount of the allocation base

plantwide

A single predetermined overhead rate is called a(n) _____________ overhead rate (1 word)

time ticket

An hour by hour summary of an employee's activities throughout the day is found on the _____________________ (2 words)

A, B, D

Companies assign costs to products and services to A. value ending inventory B. establish selling prices C. determine the best supplier of raw materials D. understand product profitability

job order

Companies that make many different products each period use _______________ costing (2 words)

predetermined overhead

Companies use a ____________________________ (2 words) rate rather than an actual overhead rat because an actual overhead rate is not known until the end of the period

A, D

Costs assigned to units of product under absorption costing include: A. fixed manufacturing B. fixed non-manufacturing C. variable non-manufacturing D. variable manufacturing

X

In the formula Y=a+bX, _____ represents the estimated total amount of the allocation base

direct

Labor costs that are easily traced to a job are called _________ labor costs

A, D

Manufacturing overhead costs: A. consist of many different items B. tend to vary significantly, in total, from one period to the next C. do not impact the average cost per unit D. are indirect costs

A, C

Materials requisition forms are used for A. controlling the flow of materials into production B. specifying the cost of materials to be ordered C. making journal entries in accounting records D. summarizing the cost of a job

$42,300

Smith, Inc. uses a job-order costing system with the predetermined overhead rate of $12 per machine-hour. The job cost sheet for Job#42A listed $12,000 in direct labor cost, $18,000 in direct materials cost, 1,200 direct labor hours and 1,100 machine hours. The total cost of Job #42A is $________________

B, C

The United States require absorption costing for A. internal financial reports B. tax reports C. external financial reports

overhead allocation base

The ______________________________ (3 words) must be common to all the company's products and services

increases; decreases

The adjustment for under-applied overhead _______ COGS and ________ net operating income

overhead applied to the job

The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find (5 words)

overhead application

The process of assigning overhead cost to jobs is called ___________________ (2 words)

A, B, C

The total cost of a job includes: A. applied manufacturing overhead B. direct labor cost C. direct materials cost D. non-manufacturing cost E. actual manufacturing overhead

applied

The total cost of a job is calculated by adding the total of direct labor cost, direct materials cost, and ______________ manufacturing overhead cost (1 word)

A, C

The unit product cost is the same as the A. average product cost per unit B. incremental unit cost C. total job cost divided by number of units D. cost that would be incurred if another unit were produced

direct materials, direct labor, manufacturing overhead

What categories are manufacturing costs generally classified?

cost-plus pricing

When a markup percentage is added to the cost of the job a ______-________ __________ occurs. (2 words, 1 with a hyphen)

A, B, C, F

Widely used allocation bases in manufacturing are: A. machine hours B. direct labor hours C. units of product D. product revenue E. non-manufacturing costs F. direct labor costs

allocation base

a measure of activity used to assign overhead costs to products and services is an __________________ ( 2 words)