chapter 2 multiple choices

Which of the following is the correct formula to compute the predetermined overhead rate?

Estimated total manufacturing overhead costs divided by estimated total units in the allocation base.

Overapplied manufacturing overhead occurs when:

applied overhead exceeds actual overhead.

Which terms will make the following statement true? When manufacturing overhead is overapplied, the Manufacturing Overhead account has a __________ balance and applied manufacturing overhead is greater than __________ manufacturing overhead

credit, actual

n computing its predetermined overhead rate, Marple Company inadvertently left its indirect labor costs out of the computation. This oversight will cause:

the Cost of Goods Manufactured to be understated.

The balance in the Work in Process account equals:

the balances on the job cost sheets of uncompleted jobs.

What document is used to determine the actual amount of direct labor to record on a job cost sheet?

time ticket

In a job-order costing system, indirect materials that have been previously purchased and that are used in production are recorded as a debit to:

Manufacturing Overhead.

In a job-order costing system, the use of direct materials that have been previously purchased is recorded as a debit to:

Work in Process inventory.

In a job-order costing system, direct labor cost is ordinarily debited to:

Work in Process.

Which of the following accounts is debited when direct labor is recorded?

Work in process

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?

direct labor-hours

Martinez Aerospace Company uses a job-order costing system. The direct materials for Job #045391 were purchased in July and put into production in August. The job was not completed by the end of August. At the end of August, in what account would the direct material cost assigned to Job #045391 be located?

work in process inventory