ch. 4 cost accounting study quiz
Which one of the following is the amount that actual factory overhead exceeds the factory overhead applied?
Underapplied overhead.
Under job costing, factory overhead costs are assigned to products or services using labor or machine hours which are:
Volume-based cost drivers.
A job in which a quantity of products is ordered by a single customer is more likely to be an example of:
the pull method of production.
Sutherland Company listed the following data for 2019: . Budgeted factory overhead $2,100,000 Budgeted direct labor hours 89,000 Budgeted machine hours 51,000 Actual factory overhead 2,201,000 Actual direct labor hours 83,700 Actual machine hours 48,900 . Assuming Sutherland applied overhead based on machine hours, the company's predetermined overhead rate for 2019 is (round to two significant digits):
$41.18 per machine hour. . budgeted factory overhead / budgeted machine hours
ABC Company listed the following data for the current year: . Budgeted factory overhead $1,044,000 Budgeted direct labor hours 69,600 Budgeted machine hours 24,000 Actual factory overhead 1,037,400 Actual labor hours 72,600 Actual machine hours 23,600 . Assuming ABC applied overhead based on machine hours, the company's predetermined overhead rate for the year is:
$43.50 per machine hour. budgeted factory overhead / budgeted machine hours
ABC Company listed the following data for the current year: . Budgeted factory overhead $1,044,000 Budgeted direct labor hours 69,600 Budgeted machine hours 24,000 Actual factory overhead 1,037,400 Actual labor hours 72,600 Actual machine hours 23,600 . If overhead is applied based on direct labor hours, the overapplied/underapplied overhead is:
$51,600 overapplied. . budgeted factory OH / budgeted direct labor hours = X (X * actual labor hrs) - actual factory overhead = 51,600
Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours were 114,000 and estimated factory overhead was $695,400. The following information was for September. Job X was completed during September, while Job Y was started but not finished. . . The total factory overhead applied during September is:
$57,950. estimated factory OH / estimated direct labor hrs = # (6.10) per DL hours direct labor hrs: ( Job x + job y ) * # you get 5000 + 4500) * (6.10) = 57,950
For job costing in service industries, overhead costs are usually applied to jobs based on:
Direct labor-hours or dollars.
The primary focus of job costing in service industries is on:
Direct labor.
Job costing in service firms uses recording procedures and accounts similar to those for manufacturing companies except for those regarding:
Direct materials.
Which of the following industries is often suitable for applying operation costing?
Electronic equipment.
A normal costing system uses actual costs for direct materials and direct labor, and:
Estimated costs for factory overhead.
The predetermined factory overhead rate includes:
Estimated total amount of cost driver.
When completed units are sold:
Finished Goods Inventory account is credited.
When completed units are transferred to the warehouse:
Finished Goods Inventory account is debited.
Which of the following is not a cost element on the job cost sheet?
Hours.
Product costing provides useful cost information for all the following except:
Identifying and hiring competent managers.
All of the following are examples of companies using job costing systems except:
International Paper.
Volume-based cost accounting systems often do not provide sufficiently accurate product costing because they:
Too often use an allocation base that does not have a cause-effect relationship to resource usage.
Jackson Inc. listed the following data for 2019: . Budgeted factory overhead $1,271,000 Budgeted direct labor hours 82,000 Budgeted machine hours 41,000 Actual factory overhead 1,201,000 Actual direct labor hours 86,300 Actual machine hours 39,400 . If overhead is applied based on direct labor hours, overapplied/underapplied overhead is (round calculations to 2 significant digits):
$136,650 overapplied. . budgeted factory overhead / budgeted direct labor hours = X ( X * actual direct labor hours) - actual factory overhead
C. M. Fly, owner of Falcon Aircraft Co., is preparing the accounting record for the year just ended. During the year, he had projected that the company would produce 300 Falcon Aircraft for its clients with a factory overhead cost of $150,000,000. However, business was better than expected and the company was able to produce 400 aircraft at factory overhead cost of $175,000,000. What is the amount per unit that Falcon Aircraft has over- or underapplied factory overhead?
$62,500 overapplied. . 1) $150,000,000/300 = $500,000 estimated overhead per Falcon Aircraft 2) $175,000,000/400 = $437,500 actual overhead per Falcon Aircraft 3) $500,000 − $437,500 = $62,500 overapplied
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The following information is for September. Job X was completed during September, while Job Y was started but not finished. . . The total factory overhead applied during September is:
$73,750. . (7,000 + 5,500) × ($5.90) = $73,750 Where $5.90 = Pre-determined Overhead Rate = $784,700/133,000
Maple Mount Fishery is a canning company in Astoria. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,400, and management budgeted $324,000 of direct labor costs. During the year, the company incurred the following actual costs. . Direct materials used $384,000 Direct labor 306,000 Factory overhead 658,000 . The January 1 balances of inventory accounts are shown below. . Materials—all direct $70,000 Work-in-process 41,000 Finished goods 26,000 . The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year. . The predetermined factory overhead rate is:
210% of direct labor costs. = factory overhead / direct materials used
Which one of the following is used by the production department supervisor to request the materials for production?
Material requisition.
Which of the following industries is more suitable for using a job costing system?
Medical clinics.
If estimated annual factory overhead is $480,000; overhead is applied using direct labor hours; estimated annual direct labor hours are 200,000; actual March factory overhead is $42,000; and actual March direct labor hours are 17,000; then overhead is:
$1,200 underapplied. 1) Pre-determined Overhead Rate = $480,000/200,000 = $2.40 factory overhead per direct labor hour 2) March factory overhead applied = 17,000 × $2.40 = $40,800 3) $42,000 actual March factory overhead − $40,800 March factory overhead applied = $1,200 underapplied
Maple Mount Fishery is a canning company in Astoria. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,400, and management budgeted $324,000 of direct labor costs. During the year, the company incurred the following actual costs. . Direct materials used $384,000 Direct labor 306,000 Factory overhead 658,000 . The January 1 balances of inventory accounts are shown below. . Materials—all direct $70,000 Work-in-process 41,000 Finished goods 26,000 . The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year. . The total manufacturing costs for the year are:
$1,332,600. . factory OH/management budgeted = 2.1 = direct materials used + direct labor + (direct labor * 2.1)
Maple Mount Fishery is a canning company in Astoria. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,400, and management budgeted $324,000 of direct labor costs. During the year, the company incurred the following actual costs. . Direct materials used $384,000 Direct labor 306,000 Factory overhead 658,000 . The January 1 balances of inventory accounts are shown below. . Materials—all direct $70,000 Work-in-process 41,000 Finished goods 26,000 . The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year. . The cost of goods manufactured during the year is:
$1,336,700. . factory OH/management budgeted = 2.1 = direct materials used + direct labor + (direct labor * 2.1) = T = work-in-process + T - (0.9 * work-in-process) 1 - .01 = .09 .01 = percent
Maple Mount Fishery is a canning company in Astoria. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,400, and management budgeted $324,000 of direct labor costs. During the year, the company incurred the following actual costs. . Direct materials used $384,000 Direct labor 306,000 Factory overhead 658,000 . The January 1 balances of inventory accounts are shown below. . Materials—all direct $70,000 Work-in-process 41,000 Finished goods 26,000 . The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year. . The normal cost of goods sold, before under or overapplied overhead is:
$1,339,300.
Maple Mount Fishery is a canning company in Astoria. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,400, and management budgeted $324,000 of direct labor costs. During the year, the company incurred the following actual costs. . Direct materials used $384,000 Direct labor 306,000 Factory overhead 658,000 . The January 1 balances of inventory accounts are shown below. . Materials—all direct $70,000 Work-in-process 41,000 Finished goods 26,000 . The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year. . The adjusted cost of goods sold, after under or overapplied overhead, is:
$1,354,700.
ABC Company listed the following data for the current year: . Budgeted factory overhead $1,044,000 Budgeted direct labor hours 69,600 Budgeted machine hours 24,000 Actual factory overhead 1,037,400 Actual labor hours 72,600 Actual machine hours 23,600 . If overhead is applied based on machine hours, the overapplied/underapplied overhead is:
$10,800 underapplied. . budgeted factory overhead / budgeted machine hours = X (X * actual machine hrs) - actual factory overhead
ABC Company uses a Materials Inventory account to record both direct and indirect materials. ABC charges direct materials to WIP, while indirect materials are charged to the Factory Overhead account. During the month of April, the company has the following cost information: . Total materials (direct and indirect) purchased $90,000 Indirect materials issued to production 30,000 Total materials issued to production 110,000 Beginning materials inventory 50,000 . The credit to the materials inventory account for materials used is:
$110,000. = Total materials issued to production
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: . Total direct labor hours budgeted = 2,000 hours. The following actual data applies to one of the products completed during the year: . If Orange, Inc. uses machine hours to allocate overhead cost, the unit product cost of Product X will be:
$130.00. 1) $200,000 Expected Total Overhead/2,000 Budgeted Machine Hours = $100 Overhead per Machine Hour 2) Total Cost: ($5,000 + $3,000 + $100 × 50 Machine Hours)/100 Units Completed = $130 unit product cost for Product X
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The following information is for September. Job X was completed during September, while Job Y was started but not finished.Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The following information is for September. Job X was completed during September, while Job Y was started but not finished. . . The total ending work-in-process for September is:
$133,450. job y (direct materials requisitioned) + (direct labor hrs job Y * $ per hr) + (direct labor hrs job Y * (estimated factory OH / direct labor hrs)) $68,000 + ($6 × 5,500) + ($5.90 × 5,500) = $133,450 Where $5.90 = Pre-determined Overhead Rate = $784,700/133,000
ABC Company listed the following data for the current year: . Budgeted factory overhead $1,044,000 Budgeted direct labor hours 69,600 Budgeted machine hours 24,000 Actual factory overhead 1,037,400 Actual labor hours 72,600 Actual machine hours 23,600 . Assuming ABC Company applied overhead based on direct labor hours, the company's predetermined overhead rate for the year is:
$15.00 per direct labor hour. . budgeted factory OH / budgeted direct labor hours $1,044,000/69,600 = $15.00 per direct labor hour
Jackson Inc. listed the following data for 2019: . Budgeted factory overhead $1,271,000 Budgeted direct labor hours 82,000 Budgeted machine hours 41,000 Actual factory overhead 1,201,000 Actual direct labor hours 86,300 Actual machine hours 39,400 . Assuming Jackson Inc. applied overhead based on direct labor hours, the firm's predetermined overhead rate for 2019 is (round calculations to 2 significant digits):
$15.50 per direct labor hour. . budgeted factory overhead / budgeted direct labor hours
Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours were 114,000 and estimated factory overhead was $695,400. The following information was for September. Job X was completed during September, while Job Y was started but not finished. . . The total cost of Job X is:
$152,400. estimated factory OH / estimated direct labor hrs = # (6.10) per DL hours Materials + Labor + Applied OH + Beginning WIP = Total cost of Job X
Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year: . Total direct labor hours budgeted = 2,000 hours. The following actual data applies to one of the products completed during the year: . If Orange, Inc. uses direct labor hours to assign overhead, the unit product cost for Product X will be:
$180.00. 1) $200,000 Expected Total Overhead/2,000 Budgeted Direct Labor Hours = $100 Overhead per Direct Labor Hour 2) Total cost: [$5,000 + $3,000 + ($100 × 100 DL Hours)]/100 Units Completed = $180 unit product cost for Product X
Sutherland Company listed the following data for 2019: . Budgeted factory overhead $2,100,000 Budgeted direct labor hours 89,000 Budgeted machine hours 51,000 Actual factory overhead 2,201,000 Actual direct labor hours 83,700 Actual machine hours 48,900 . If overhead is applied based on machine hours, the overapplied/underapplied overhead is (round calculations to 2 significant digits):
$187,298 underapplied. . budgeted factory overhead / budgeted machine hours = X ( X * actual direct labor hours) - actual factory overhead
Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours were 114,000 and estimated factory overhead was $695,400. The following information was for September. Job X was completed during September, while Job Y was started but not finished. . . The underapplied or overapplied overhead for September is:
$2,750 overapplied. ( the highest one) 57 - 55,200 = 2,750 estimated factory OH / estimated direct labor hrs = # (6.10) per DL hours direct labor hrs: ( Job x + job y ) * # you get 5000 + 4500) * (6.10) = 57,950 . Actual factory overhead =
Jackson Inc. listed the following data for 2019: . Budgeted factory overhead $1,271,000 Budgeted direct labor hours 82,000 Budgeted machine hours 41,000 Actual factory overhead 1,201,000 Actual direct labor hours 86,300 Actual machine hours 39,400 . If overhead is applied based on machine hours, the overapplied/underapplied overhead is (round calculations to 2 significant digits):
$20,400 overapplied. . budgeted factory overhead / budgeted machine hours = X ( X * actual machine hours) - actual factory overhead
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The following information is for September. Job X was completed during September, while Job Y was started but not finished. . . Cost of goods manufactured for September is:
$210,700.
Sutherland Company listed the following data for 2019: . Budgeted factory overhead $2,100,000 Budgeted direct labor hours 89,000 Budgeted machine hours 51,000 Actual factory overhead 2,201,000 Actual direct labor hours 83,700 Actual machine hours 48,900 . If overhead is applied based on direct labor hours, the overapplied/underapplied overhead is (round calculations to 2 significant digits):
$225,680 underapplied. . budgeted factory overhead/budgeted direct labor hours = X ( X * actual direct labor hours) - actual factory overhead
Sutherland Company listed the following data for 2019: . Budgeted factory overhead $2,100,000 Budgeted direct labor hours 89,000 Budgeted machine hours 51,000 Actual factory overhead 2,201,000 Actual direct labor hours 83,700 Actual machine hours 48,900 . Assuming Sutherland applied overhead based on direct labor hours, the company's predetermined overhead rate for 2019 is (round to two significant digits):
$23.60 per direct labor hour. . budgeted factory overhead/budgeted direct labor hours
ABC Company uses a Materials Inventory account to record both direct and indirect materials. ABC charges direct materials to WIP, while indirect materials are charged to the Factory Overhead account. During the month of April, the company has the following cost information: . Total materials (direct and indirect) purchased $90,000 Indirect materials issued to production 30,000 Total materials issued to production 110,000 Beginning materials inventory 50,000 . The debit to the Factory Overhead account is:
$30,000. = Indirect materials issued to production
ABC Company uses a Materials Inventory account to record both direct and indirect materials. ABC charges direct materials to WIP, while indirect materials are charged to the Factory Overhead account. During the month of April, the company has the following cost information: . Total materials (direct and indirect) purchased $90,000 Indirect materials issued to production 30,000 Total materials issued to production 110,000 Beginning materials inventory 50,000 . The ending materials inventory cost is:
$30,000. = beg. materials inventory + total materials purchased - total materials issued to production
Jackson Inc. listed the following data for 2019: . Budgeted factory overhead $1,271,000 Budgeted direct labor hours 82,000 Budgeted machine hours 41,000 Actual factory overhead 1,201,000 Actual direct labor hours 86,300 Actual machine hours 39,400 . Assuming Jackson Inc. applied overhead based on machine hours, the firm's predetermined overhead rate for 2019 (round calculations to 2 significant digits) is:
$31.00 per machine hour. . budgeted factory overhead / budgeted machine hours
Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. . The cost of direct materials used for production is:
$361,000. = Jan. 1 direct materials + dec. 31 direct materials purchases - dec. 31 direct materials
Maple Mount Fishery is a canning company in Astoria. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,400, and management budgeted $324,000 of direct labor costs. During the year, the company incurred the following actual costs. . Direct materials used $384,000 Direct labor 306,000 Factory overhead 658,000 . The January 1 balances of inventory accounts are shown below. . Materials—all direct $70,000 Work-in-process 41,000 Finished goods 26,000 . The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year. . The amount of direct materials purchased during the year is:
$377,000. = direct materials used + (.09 * materials-alldirect) - materials-alldirect
L & L, CPAs, employs two full-time professional CPAs and five support employees. Budgeted direct salary costs include $160,000 for each CPA. The support employees are considered as indirect costs, and this cost was budgeted for $200,000 although the actual cost was $225,000. Actual salaries were $155,000 for each CPA. Direct and indirect costs are applied on a CPA-labor-hour basis. Total budgeted CPA-labor-hours were 5,000. If a client used 500 labor-hours, what are the budgeted direct-cost rate and the budgeted indirect-cost rate, respectively?
$64; $40. . • Budgeted Direct Cost Rate = ($160,000 × 2)/5,000 hours = $64 per direct hr. • Budgeted Indirect Cost Rate = $200,000/5,000 hours = $40 per indirect hr.
ABC Company uses a Materials Inventory account to record both direct and indirect materials. ABC charges direct materials to WIP, while indirect materials are charged to the Factory Overhead account. During the month of April, the company has the following cost information: . Total materials (direct and indirect) purchased $90,000 Indirect materials issued to production 30,000 Total materials issued to production 110,000 Beginning materials inventory 50,000 . The amount of direct materials issued is:
$80,000. . = Total materials issued to production - Indirect materials issued to production
ABC Company uses a Materials Inventory account to record both direct and indirect materials. ABC charges direct materials to WIP, while indirect materials are charged to the Factory Overhead account. During the month of April, the company has the following cost information: . Total materials (direct and indirect) purchased $90,000 Indirect materials issued to production 30,000 Total materials issued to production 110,000 Beginning materials inventory 50,000 . The debit to Work-in-Process Inventory account for materials is:
$80,000. = Total materials issued less indirect materials issued
Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. . The total manufacturing costs for the year are:
$811,000. = COGS available for sale - jan 1 finished goods ( pretend this is X ) = X + dec. 31 work in process - jan 1 work in process
Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. . The cost of goods manufactured during the year is:
$835,000. = COGS available for sale - jan 1 finished goods
Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. . The cost of goods sold (before adjustment for under or overapplied overhead) is:
$850,000. = COGS available for sale - dec 31 finished goods
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The following information is for September. Job X was completed during September, while Job Y was started but not finished. . . The underapplied or overapplied overhead for September is:
$950 overapplied. (smallest) . Actual Overhead = $24,200 + 11,100 + 9,300 + 10,400 + 17,800 = $72,800 $73,750 − $72,800 = $950 Overapplied (7,000 + 5,500) × ($5.90) = $73,750 Where $5.90 = Pre-determined Overhead Rate = $784,700/133,000
The ideal criterion for choosing an allocation base for overhead is:
A cause-and-effect relationship.
The journal entry required to record factory depreciation includes:
A debit to the Factory Overhead account.
Which type of firm is most likely to require a very accurate costing system?
A firm in a competitive environment.
The system where the cost of a product or service is obtained by assigning costs to masses of similar units in each department and then computing unit cost on an average basis is called:
A process costing system.
Which of the following can produce unit product costs that fluctuate significantly?
Actual costing system.
Departmental rates are appropriate when all the following exist except:
All departments have similar cost drivers and cost usage characteristics.
Factory overhead can be over- or under-applied because:
All of these answer choices are correct.
Product costing system design or selection:
All of these answer choices are correct.
The following are types of rework except:
All of these answer choices are types of rework, with no exception.
Which of the following journal entries is correct if scrap is being incurred and sold for all jobs in common in the amount of $600?
Cash 600 Factory Overhead 600
The management accountant should be aware that the software system(s) that should be used to prepare job cost reports is:
Chosen from a variety of software systems available, often designed specifically for a particular industry. (longest)
Which of the following companies uses process costing systems?
Coca-Cola.
The three major differences between process and job order costing systems are those relating to:
Cost object, product or service variety, and timing of unit cost calculation.
The journal entry to dispose of a small amount of overapplied or underapplied overhead, if overhead is applied based on direct labor hours, would be charged to:
Cost of Goods Sold.
The total cost of direct materials, direct labor, and factory overhead transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account during an accounting period is:
Cost of goods manufactured.
All of the following items are debited to the Work-in-Process Inventory account except:
Cost of the completed goods being transferred out of the plant.
At the end of a fiscal year, overapplied factory overhead should be:
Credited to Cost of Goods sold.
Cost system design/selection should consider all except which one of the following?
Customer needs.
Volume-based rates are appropriate in situations where the incurrence of factory overhead:
Is related to a single, common cost driver.
Abnormal spoilage:
Is unacceptable spoilage that should not occur under efficient operating conditions.
Which one of the following documents records and summarizes the costs of direct materials, direct labor, and factory overhead for a particular job?
Job cost sheet.
Operation costing is a hybrid costing system for products and services that uses:
Job costing for direct materials costs and process costing for conversion cost.
Which of the following is not a method the management accountant must address regarding the costing system?
Labor decision method.
A hybrid costing system that uses job costing to assign direct materials costs, and process costing to assign conversion costs to products or services is:
Operation costing.
Operation costing uses which of the following costing systems? . Process Costing. Standard Costing. Job Costing. A)Yes Yes No B)Yes No Yes C)No Yes Yes D)Yes Yes Yes
Option B
Scrap can be classified according to which of the following? . Specific Job. Common to all Jobs. A)Yes No B)No Yes C)No No D)Yes Yes
Option D
Which one of the following is the amount of factory overhead applied that exceeds the actual factory overhead cost?
Overapplied overhead.
Standard costs are:
Planned costs the firm should attain.
Many firms use which one of the following terms to indicate the use of job costing in service industries?
Project costing.
The two main advantages of using predetermined factory overhead rates are to provide more accurate unit cost information and to:
Provide cost information on a timely basis.
Which of the following methods accurately represents the process below? A customer orders twenty cases of nails, and the firm then produces the nails:
Pull method.
A time ticket:
Shows the time an employee worked on each job, the pay rate, and the total cost chargeable to each job.
Normal spoilage is defined as:
Spoilage that occurs under efficient operations.
The key distinction between job costing and process costing is:
The accumulation of costs to assign to cost objects.
The time ticket shows which amount for an employee?
The pay rate.
Departmental overhead rates are preferred over plantwide rates when:
The products use different amounts of different processes in different departments.
With the increase in competition over the past several years and the need for additional accuracy in product costing, traditional cost accounting systems have become less common in product costing because:
They use volume-based cost drivers.
In job costing, the job might consist of:
a single product, a batch of products, or a single well-defined project. (longest)