Acct 5303 - Chapter 17 Quiz

Shalit Company uses a job order cost system and has established a predetermined overhead application rate for the current year of 150% of direct labor cost, based on budgeted overhead of $1,800,000 and budgeted direct labor cost of $1,200,000. Job Number 471 was charged with direct materials of $72,000 and with overhead of $54,000. What is the total cost of Job Number 471?

162K

In an activity-based costing system, manufacturing overhead costs are divided into separate:

Activity cost pools.

A job cost sheet should:

Contain information on each individual job in process.

The method used by managers when comparing unit costs with budgeted costs or other measures is broadly known as:

Cost control

Select the best answer to complete the sentence: Processes that consume resources must be matched with the associated _________blank, so that managers can decide how best to provide products or services to customers.

Costs

A job order cost system would be appropriate for companies that manufacture:

Custom-made furniture.

A job cost sheet will include:

Direct labor applied to production.

The Work in Process account in a job order cost accounting system will be debited for:

Direct labor, direct materials, and applied overhead.

A predetermined overhead application rate:

Expresses an expected relationship between overhead costs and an activity base.

The cost of salaries paid to employees who maintain a company's heating system is considered:

Factory overhead.

When a job is completed, the:

Finished Goods Inventory account is debited.

Manufacturing overhead is a(n):

Indirect cost that cannot be traced to a specific job.

Under a job order cost system, costs are separately accumulated for each:

Job or unique batch of products produced.

Basic cost accounting systems include:

Job order cost systems, activity-based cost systems, and process cost systems.

Which of the following is not a commonly used cost accounting system?

Manufacturing yield costing

Benefits of activity-based costing include all of the following except:

More subjective product pricing decisions.

Which of the following would likely be the most appropriate cost driver to allocate machinery set-up costs to products?

Number of production runs

Which of the following statements is true about activity-based costing?

Numerous activity bases are used in applying overhead costs to products.

An activity-based costing system would probably not be appropriate if a company:

One produces one product

A job order cost system would be suitable for which of the following?

Sailboat builder

Debits to the Manufacturing Overhead account record:

The actual amounts of overhead costs incurred during a period.

The document that provides information for the cost of goods manufactured is:

The job cost sheet.

Which of the following costing systems would always use job cost sheets?

job order costing