Accounting Ch. 2
-type of direct material needed to complete a unit of product -quantity of each direct material needed to complete a unit of product
A bill of materials contains the:
materials costs charged to the job manufacturing overhead costs charged to the job labor costs charged to the job
A job sheet contains:
predetermined overhead actual
A normal costing system applies overhead by job by multiplying a(n) _______ _______ rate by the _____ amount of the allocation base incurred by the job.
direct materials cost direct labor cost manufacturing overhead
Categories of manufacturing costs include:
job-order costing
Companies that make many different products each period use:
variable manufacturing fixed manufacturing
Costs assigned to units of product under absorption costing include:
materials are issued to the job
Direct materials costs are recorded on the job cost sheet when the:
variable manufacturing overhead cost per unit
In the formula y=a+bx, b represents the estimated:
total amount of the allocation base
In the formula y=a+bx, y represents the estimated:
direct labor cost
Labor charges that CAN be easily traced to a job are considered:
indirect labor manufacturing overhead
Labor charges that CANNOT be easily traced to a job are considered:
consist of many different items are indirect costs contains fixed costs
Manufacturing overhead costs:
a) controlling the flow of materials into production d) making journal entries in accounting records
Materials requisition forms are used for: (Select all that apply) a) controlling the flow of materials into production b) summarizing the cost of a job c) specifying the cost of materials to be ordered d) making journal entries in accounting records
overhead applied to the job
The PDOR is multiplied by the actual allocation base incurred by a job to find:
time ticket
The document used to record the time workers spent on each job and task is called a :
many different kinds of indirect costs
The manufacturing overhead account contains:
allocation
The process used to assign overhead costs to products is called overhead:
applied manufacturing overhead
The total cost of a job is calculated by adding the total of direct labor cost, direct materials, and:
remain fairly constant
Total manufacturing overhead costs tend to:
flight-hours computer time machine-hours
Typical cost drivers include:
accounting hours
What is NOT a good allocation base for manufacturing overhead?
It must be common to all the company's products and services.
What is an essential quality of an overhead allocation base?
estimated manufacturing overhead cost divided estimated allocation base
What is the formula for predetermined overhead rate?
Each production department may have its own PDOR.
What is true in a multiple PDOR system?
single;This is also known as a plantwide rate.
When all overhead is assigned using direct-labor hours, the company has chosen to use a(n) _______ predetermined overhead rate.
Paperwork at a law firm
Which of the following would be considered direct materials in a service firm that uses job-order costing? a) Scissors at a hair salon b) Paperwork at a law firm c) Beds in a hospital d) Tools in an auto repair shop
- Machine hours - Direct labor cost - Units of product - Direct Labor hours
Widely used allocation bases in manufacturing are:
