Accounting Ch. 2

-type of direct material needed to complete a unit of product -quantity of each direct material needed to complete a unit of product

A bill of materials contains the:

materials costs charged to the job manufacturing overhead costs charged to the job labor costs charged to the job

A job sheet contains:

predetermined overhead actual

A normal costing system applies overhead by job by multiplying a(n) _______ _______ rate by the _____ amount of the allocation base incurred by the job.

direct materials cost direct labor cost manufacturing overhead

Categories of manufacturing costs include:

job-order costing

Companies that make many different products each period use:

variable manufacturing fixed manufacturing

Costs assigned to units of product under absorption costing include:

materials are issued to the job

Direct materials costs are recorded on the job cost sheet when the:

variable manufacturing overhead cost per unit

In the formula y=a+bx, b represents the estimated:

total amount of the allocation base

In the formula y=a+bx, y represents the estimated:

direct labor cost

Labor charges that CAN be easily traced to a job are considered:

indirect labor manufacturing overhead

Labor charges that CANNOT be easily traced to a job are considered:

consist of many different items are indirect costs contains fixed costs

Manufacturing overhead costs:

a) controlling the flow of materials into production d) making journal entries in accounting records

Materials requisition forms are used for: (Select all that apply) a) controlling the flow of materials into production b) summarizing the cost of a job c) specifying the cost of materials to be ordered d) making journal entries in accounting records

overhead applied to the job

The PDOR is multiplied by the actual allocation base incurred by a job to find:

time ticket

The document used to record the time workers spent on each job and task is called a :

many different kinds of indirect costs

The manufacturing overhead account contains:

allocation

The process used to assign overhead costs to products is called overhead:

applied manufacturing overhead

The total cost of a job is calculated by adding the total of direct labor cost, direct materials, and:

remain fairly constant

Total manufacturing overhead costs tend to:

flight-hours computer time machine-hours

Typical cost drivers include:

accounting hours

What is NOT a good allocation base for manufacturing overhead?

It must be common to all the company's products and services.

What is an essential quality of an overhead allocation base?

estimated manufacturing overhead cost divided estimated allocation base

What is the formula for predetermined overhead rate?

Each production department may have its own PDOR.

What is true in a multiple PDOR system?

single;This is also known as a plantwide rate.

When all overhead is assigned using direct-labor hours, the company has chosen to use a(n) _______ predetermined overhead rate.

Paperwork at a law firm

Which of the following would be considered direct materials in a service firm that uses job-order costing? a) Scissors at a hair salon b) Paperwork at a law firm c) Beds in a hospital d) Tools in an auto repair shop

- Machine hours - Direct labor cost - Units of product - Direct Labor hours

Widely used allocation bases in manufacturing are: