ACT 2
What document specifies the type and quantity of direct materials used on a specific job?
Materials requisition form
Which of the following is not a manufacturing cost category?
Selling & administrative costs
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 cost driver usage for a job to calculate the ______ the job.
overhead applied to
When is the predetermined overhead rate calculated?
Before the period begins
Which of the following statements are true?
When materials are purchased they are recorded in the Raw materials inventory account. Raw materials inventory represents the cost of materials not yet used in production.
The basic formula for process costing is ______.
average unit cost = total manufacturing cost/total units produced
The first step in assigning manufacturing overhead costs using a predetermined overhead rate is to ______.
determine the cost driver
Major inputs such as lumber and fixtures that can be easily traced to a specific job are called
direct materials
The formula for a predetermined overhead rate is ______.
estimated total manufacturing overhead cost / estimated total cost driver
A predetermined overhead rate is calculated by dividing the ______ total manufacturing overhead by the ______ total cost driver.
estimated; estimated
Ideally an allocation base should ______.
explain or influence the amount of overhead incurred
Costs of partially completed units are accounted for in ______.
work in process