Chapter 2 Video

The direct materials required to manufacture each unit of product are listed on a ________. bill of materials materials requisition form materials ticket job order cost sheet

bill of materials

A normal cost system applies overhead to jobs ________. by multiplying a predetermined overhead rate by the estimated amount of the allocation base incurred by the job by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job using the actual amount of overhead caused by each job using the normal amount of overhead caused by each job

by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job

The adjustment for overapplied overhead ________. decreases cost of goods sold and decreases net operating income. decreases cost of goods sold and increases net operating income. increases cost of goods sold and decreases net operating income. increases cost of goods sold and increases net operating income.

decreases cost of goods sold and increases net operating income.

When all of a company's job cost sheets are viewed collectively they form what is known as a ________. general ledger inventory job-order costing system subsidiary ledger

subsidiary ledger

In the cost formula (Y = a + bX) that is used to estimate the total manufacturing overhead cost for a given period, the letter "a" refers to the estimated ________. total manufacturing overhead cost total fixed manufacturing overhead cost variable manufacturing overhead cost per unit of the allocation base total amount of the allocation base

total fixed manufacturing overhead cost

The management of Blue Ocean Company estimates that 50,000 machine-hours will be required to support the production planned for the year. It also estimates $300,000 of total fixed manufacturing overhead cost for the coming year and $4 of variable manufacturing overhead cost per machine-hour. What is the predetermined overhead rate? $6.00 per machine hour. $8.00 per machine hour. $10.00 per machine hour. $12.50 per machine hour.

$10.00 per machine hour.

Spartan Corporation estimates that it will incur $200,000 of total manufacturing overhead cost at an estimated activity level of 10,000 direct labor-hours. What is the amount of manufacturing overhead that would be applied to a job that required 200 direct labor-hours? $2,000 $4,000 $6,000 $10,000

$4,000

Wilson Products uses a plantwide predetermined overhead rate of $10 per direct labor-hour. Direct material and direct labor associated with Job X23 are $4,000 and $1,200 respectively. If Job X23 used 100 direct labor-hours, what is the total cost assigned to this job? $5,000 $5,200 $6,000 $6,200

$6,200

What is the term used when a company applies less overhead to production than it actually incurs? Misapplied Overapplied Unadjusted Underapplied

Underapplied

What is the predetermined overhead rate for the Packing Department? $8.70 per DLH $9.61 per DLH $10.51 per DLH $18.28 per DLH

$10.51 per DLH

Wilson Products uses a plantwide predetermined overhead rate of $10 per direct labor-hour. Direct material and direct labor associated with Job X23 are $4,000 and $1,200 respectively. If Job X23 used 100 direct labor-hours to produce 50 audio controllers, what is this job's unit product cost (per audio controller)? $52 $62 $100 $124

$124

What is the estimated total manufacturing overhead in the Assembly Department? $595,200 $651,600 $809,000 $1,246,700

$595,200

Companies can improve job cost accuracy by using ________. a plantwide overhead rate direct-labor hours to apply overhead multiple predetermined overhead rates number of units in the job to apply overhead

multiple predetermined overhead rates