managerial accounting test 1

costs that cannot be easily and conveniently traced to that specific cost object

indirect cost

examples of indirect labor costs

-assembly-line supervisor salary -factory security guard wages

which of the following are most likely fixed costs? -factory rent -factory insurance -electricity to operate factory machines -administrative salaries

-factory rent -factory insurance -administrative salaries

Yista Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The company estimated manufacturing overhead at $510,000 for the year and direct labor-hours at 100,000 hours. Actual manufacturing overhead costs incurred during the year totaled $540,000. Actual direct labor-hours were 105,000. What was the overapplied or underapplied overhead for the year?

4,500 underapplied

The journal entry used to record the incurrence of indirect labor costs is:

C) Manufacturing Overhead XXX Wages Payable XXX

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 ________

Credit, actual

A proper journal entry to close overapplied manufacturing overhead to Cost of Goods Sold would be

D) Manufacturing Overhead XXX Cost of Goods Sold XXX

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

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

The balance in the Work in Process account equals:

The balances on the job cost sheets of uncompleted jobs

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

Work in Process

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

Work in Process inventory

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

costs associated with the general management of an organization are called ____ costs

administrative

setting up equipment, placing purchase orders, and arranging shipments to customers are all examples of ___-level activites

batch

a systematic approach to identifying the activities that need the most improvement is called

benchmarking

comparing the performance within an organization to that of other similar organizations is called

benchmarking

costs that are shared by multiple cost objects in a company are known as ____ costs

common

a cost that can be easily and conveniently traced to a specific cost object is a

direct cost

when a company implements activity-based costing, overhead cost often shifts from ___ volume products to ____ volume products

high;low

Wert Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead was $1,200,000 and its estimated level of activity was 50,000 direct labor-hours. The company's direct labor wage rate is $12 per hour. Actual manufacturing overhead amounted to $1,240,000, with actual direct labor cost of $650,000. For the year, manufacturing overhead was:

overapplied by $60,000

what is the first stage of allocating overhead costs to products?

overhead costs are assigned to activity cost pools

variable costs:

remain constant per unit and vary in total

fixed costs remain constant in ____ over the ____ range of activity

total ; relavant

which type of cost changes in total, in direct proportion to changes in activity level?

variable