ACC 213 - Weaver Exam One

Which of the following is an example of a period cost in a company that makes clothing?

Advertising cost for a new line of clothing.

Under a job-order costing system, the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs:

Completed during the period.

Direct labor cost is classified as

Cost - Yes: Prime Cost - Yes

Product costs that have become expenses can be found in:

Costs of Goods Sold

Rotonga Manufacturing Company leases a vehicle to deliver its finished products to customers. Which of the following terms correctly describes the monthly lease payments made on the delivery vehicle?

Direct Cost - No; Fixed Cost - Yes

In a job-order costing system, indirect labor cost is usually recorded as a debt to:

Manufacturing overhead

Which of the following costs could contain both variable and fixed cost elements with respect to the total output of the company?

Manufacturing overhead

Refer to the T-account below Raw Materials Bal. 15,000 | (9) 75,000 (5) 85,000 . | _____________________|__________________________ Bal. 25,000 | Entry (5) could represent which of the following?

Payments for raw materials

In a job-order costing system that is based on machine-hours, which of the following formulas is correct?

Predetermined overhead rate = Estimated overhead divided by Estimated machine-hours

Which costs will change with a decrease in activity within the relevant range?

Unit fixed costs and total variable cost.

Which of the following statements concerning direct and indirect costs is NOT true?

Whether a particular cost is classified as direct ot indirect does not depend on the cost object.

In a job-order costing system, manufacturing overhead applied is recorded as a debt to:

Work in Process inventory

Manufacturing Overhead includes:

all manufacturing costs except direct labor and direct materials

Ashe Corporation has two manufacturing departments-Machining and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

$13,500

Thach Corporation: The unit product for Job T321 is closest to:

$154.50

Shane corporation has provided the following data concerning last month's operations:

$157,000

Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The corporation has provided the following estimated costs for the next year: Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be:

$2.50 per direct labor-hour

Beans Corporation The unit product cost for Job K818 is closest to:

$259.50

Brothern Corp. bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: The predetermined overhead rate for the recently completed year was closest to:

$27.13 per machine-hour

Levron Corporation The amount of overhead applied to Job P978 is closest to:

$392

Odonell Corporation uses a job-order costing system with a single plantwide overhead rate based on direct-labor hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $36,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 10,000 direct labor-hours. The estimated total manufacturing overhead is closest to:

$64,000

Atteberry Corporation: Assume the company uses a plant wide predetermined manufacturing overhead rate based on machine-hours. The total manufacturing cost assigned to Job E is closest to:

$73,696

Lueckenhoff Corporation The amount of overhead applied to Job T498 is closest to:

$760

Molzahn Corporation is a manufacturer that uses job-order costing. the company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Manufacturing overhead is overapplied or underapplied by:

$94,000 Underapplied

The salary paid to the president of a company would be classified on the income statements as a(n):

Administrative expense

If manufacturing overhead is the under-applied, then:

the amount of manufacturing overhead cost applied to Work in Process is less than the actual manufacturing overhead cost incurred.

Within the relevant range, variable costs can be expected to:

vary in total in direct proportion to changes in the activity level.