AVSC 3320 4.1

What is the measure that is used to assign overhead costs to products and services?

Allocation base

How are manufacturing overhead costs assigned to Work in Process?

By means of the predetermined overhead rate

The actual manufacturing overhead costs incurred during the period are added to the Work in Process account.

False

What consist of of completed units of product that have not yet been sold to customers?

Finished goods

The Manufacturing Overhead account operates as which of the following?

Clearing account

As finished goods are shipped to customers, their accumulated costs are transferred from the Finished Goods account to which account?

Cost of Goods Sold

What are the manufacturing costs associated with the goods that were finished during the period?

Cost of goods manufactured

What type of overhead rate is predetermined overhead for an entire factory?

Plantwide overhead rate

What document is issued once an agreement has been reached with the customer concerning the quantities, prices, and shipment date for the order?

Production order

The difference between the overhead cost applied to Work in Process and the actual overhead costs of a period is know as which of the following?

Underapplied overhead Overapplied overhead