Unit 1 Review

If the amount of factory overhead cost incurred exceeds the amount applied, the factory overhead account will have a A. debit balance and be underapplied B. credit balance and be underapplied C. credit balance and be overapplied D. debit balance and be overapplied

A. debit balance and be underapplied

What does under absorbed mean?

Actual overhead exceeded planned overhead, actual overhead exceeded budgeted overhead, and the overhead account has a debit balance at the end of the period

When applied factory overhead is more than actual factory overhead, the result is called? A. unbalanced factory overhead B. underapplied factory overhead C. overapplied factory overhead D. unreconciled factory overhead

B. underapplied factory overhead

At the end of July, the first month of the current fiscal year, the factory overhead account had a debit balance. Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet? A. overapplied, deferred credit B. underapplied, deferred debit C. underapplied, deferred credit D. overapplied, deferred debit

B. underapplied, deferred debit

The period expenses of a textbook printer would include A. wages of a press operator B. factory insurance costs C. CEO salary expense D. paper costs

C. CEO salary expense

When applied factory overhead is more than actual factory overhead, the result is called A. unbalanced factory overhead B. underapplied factory overhead C. overapplied factory overhead D. unreconciled factory overhead

C. overapplied factory overhead

Which of the following units would be inappropriate as an allocation base for factory overhead rates

Total units produced

Long distance telephone bill for calls made by a salesperson would be classified as?

period cost -- selling expense

In process costing, the costs of direct materials and direct labor are charged directly to?

process departments

Which of the following is a cost pool used with the activity based costing approach?

production set up

Materials requisition are used to?

release materials from the storeroom to the factory

What are conversion costs?

the costs to convert raw materials into finished goods and direct labor and overhead costs

Which of the following is omitted from conversion costs?

Direct materials

Measure of work done in a production period , expressed in complete units of output is called

Equivalent units

T/F Product costs would include supplies expenses for salesmen and IT department software expense

False

T/F A single plantwide rate is more complicated than a multiple department rate

False, a single plantwide rate is less complicated but also less accurate