MGMT 201 Ch. 2 SB Exam 1 Review
A SERVICE firm that would most likely use job-order costing is a ______.
law practice
Widely used allocation bases in manufacturing include:
machine hours. units of product. direct labor cost. direct labor hours.
Total manufacturing overhead costs tend to Blank______.
remain fairly constant from one period to the next even though the units produced fluctuate
SPL Enterprises assigns overhead based on number of machine hours. For the upcoming year, they plan to use a total of 250,000 machine hours and 50,000 direct labor hours. Total overhead cost is expected to be $500,000. The predetermined overhead rate per machine hour is $__.
$2
Smith, Inc. uses a job-order costing system with the predetermined overhead rate of $12 per machine-hour. The job cost sheet for Job #42A listed $12,000 in direct labor cost, $18,000 in direct materials cost, 1,200 direct labor-hours and 1,100 machine-hours. The total cost of Job #42A is $____.
43,200
A normal cost system assigns overhead to jobs using ______.
POHR
The most common approach to product costing throughout the world is ______ costing.
absorption
Manufacturing overhead costs __.
are indirect costs consist of many different items
Overhead application is the process of ______.
assigning manufacturing overhead costs to jobs
Job-order costing would most likely be used in a(n) ______.
construction company
Materials requisition forms are used for ______.
controlling the flow of materials into production making journal entries in accounting records
manufacturing costs include
direct materials, direct labor, manufacturing overhead
The United States requires absorption costing for ______ financial reports.
external
Job-order costing can only be used in manufacturing firms.
false
Manufacturing overhead:
is an indirect cost. contains fixed costs. consists of many different types of costs.
The document that records the materials, labor, and manufacturing overhead costs charged to a job is the ______.
job cost sheet
Companies that make many different products each period use
job costing\
Manufacturing overhead consists of ______.
many different kinds of indirect costs
Companies that use job-order costing make _____
many different products
Direct materials costs are recorded on the job cost sheet when the ______.
materials are issued to the job
An allocation base is a(n) ______.
measure of activity used to assign overhead costs to products and services
The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find ______.
overhead applied to the job
The formula for applying overhead to a specific job is ___.
predetermined overhead rate × amount of allocation base incurred by job
A bill of materials contains the ___
quantity of each direct material needed to complete a unit of product type of each direct material needed to complete a unit of product
The document used to record the hours workers spend on each job and task is called a Blank______
time ticket
In the formula Y = a + bX, X represents the estimated ______.
total amount of the allocation base
In the formula Y = a + bX, a represents the estimated ______.
total fixed manufacturing overhead cost.
The average manufacturing overhead cost per unit tends to ___.
vary from one period to the next.
Costs assigned to units of product in absorption costing include ______ manufacturing costs.
variable AND fixed
Costs assigned to units of product under absorption costing include:
variable manufacturing. fixed manufacturing.
A job cost sheet contains:
-materials costs charged to the job -labor costs charged to the job -manufacturing overhead costs charged to the job
The process used to assign overhead costs to products is called overhead:
allocation
