managerial acct 3
normal cost system
an approach that assigns the actual costs of direct materials and direct labor to products but uses a predetermined rate to assign overhead costs
_______ is found by multiplying the predetermined overhead rate by the actual use of the associated activity for the period
applied overhead
overhead assigned to production using predetermined rates is
applied overhead
the ______ is subsidiary to the work-in-process account and is the primary document for accumulating all costs related to a particular job.
job-order cost sheet
A _______ is used by the cost accounting department to enter the cost of direct materials onto the correct job-order cost sheet.
materials requisition form
This form asks for the type, quantity, and unit price of direct materials.
materials requisition form
This form may be used to maintain proper control over a firm's inventory of direct materials
materials requisition form
The amount by which applied overhead exceeds actual overhead
overapplied overhead
The difference between actual overhead and applied overhead
overhead variance
The difference between actual overhead and applied overhead is called a (n)
overhead variance
A ___________ is a single overhead rate calculated by using all estimated overhead for a factory divided by the estimated activity level across the entire factory.
plantwide overhead rate
A single overhead rate calculated using all estimated overhead for a factory divided by the estimated activity level across the entire factory
plantwide overhead rate
The _________ is calculated at the beginning of the year by dividing the total estimated annual overhead by the total estimated level of cost driver.
predetermined overhead rate
an overhead rate computed using estimated data is
predetermined overhead rate
When materials are requested for production the cost is removed from ________ and added to______
raw materials; work-in-process
A source document by which direct labor costs are assigned to individual jobs is known as a
time ticket
This form is filled out by each employee every day.
time ticket
If actual overhead is greater than applied overhead, then the variance is called
underapplied overhead
the amount by which actual overhead exceeds applied over head is
underapplied overhead
A normal job-order costing system is a system that uses:
Actual costs for direct materials and direct labor and estimated costs for overhead.
Using normal costing, which costs never enter the work-in-process account?
Actual overhead
Using normal costing requires that
Actual overhead costs are not assigned directly to jobs.
Actual cost system
An approach that assigns actual costs of direct materials, direct labor and overhead to products
Estimated overhead for a single department divided by the estimated activity level for that same department
Departmental overhead rate
T/F Actual overhead costs always enter the Work-in-Process account.
F
T/F Direct labor is allocated to jobs along with overhead using a cost driver.
F
T/F There will be many different jobs on a job-order cost sheet.
F
T/F Work-in-process consists of all complete work.
F
Every time a new job is started this is prepared.
Job-order cost sheet
The job order number, or name, head this form.
Job-order cost sheet
T/F If the overhead variance shows overapplied overhead, then that amount would be subtracted from normal cost of goods sold.
T
T/F The adjusted cost of goods sold is equal to normal cost of goods sold plus or minus the overhead variance.
T
T/F The cost of a job includes direct materials, direct labor, and applied overhead.
T
T/F Time tickets are used to post the cost of direct labor to individual jobs
T
T/F Variances in overhead are expected every month.
T
T/F When a job is complete, it must leave Work-in-Process and be entered into Finished Goods or Cost of Goods Sold.
T
job-order costing system
a costing system in which costs are collected and assigned to units of production for each individual job
process-costing system
a costing system that accumulates production costs by process or by department for a given period of time
_________ is the amount that appears as an expense on the income statement after the adjustment for the period's overhead variance is recorded.
adjusted cost of goods sold