Managerial Accounting Ch. 3 Quiz – Flashcards

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is: A. estimate total manufacturing overhead costs for the coming year. B. select an allocation base and estimate the total amount that will be used during the year. C. Allocate some manufacturing overhead to each individual job. D. Calculate a predetermined manufacturing overhead rate.

Beta Company uses a predetermined overhead rate based on machine hours to allocate manufacturing overhead to jobs. The company estimated that it would incur $600,200 of manufacturing overhead during the year and that 250,400 machine hours would be used. During the year, the company actually incurred manufacturing overhead costs of $582,700 and 241,000 machine hours were used. By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent and the final answer to the nearest dollar). A. $4,300 underallocated B. $17,500 overallocated C. $17,500 underallocated D. $4,300 overallocated

The assignment of direct and indirect materials to a cost object reduces the A. manufacturing overhead account B. finished goods inventory account C. raw materials inventory account D. work in process inventory account

A job costing system can be used by which types of companies? A. Service and merchandising businesses B. Service, manufacturing, and merchandising businesses C. Manufacturing and merchandising businesses D. Service and manufacturing businesses

Service firms develop a predetermined rate for some costs. This rate is called the A. direct cost rate B. indirect cost allocation rate C. hourly cost rate D. labor rate

An internal request to transfer raw materials requires personnel to complete a A. purchase order document B. bill of materials document C. materials requisition document D. labor time record document

Jasper Carts manufactures custom carts for a variety of uses. The following data have been recorded for Job 651, which was recently completed. Direct materials used costs $7,200. There were 175 direct labor hours worked on this job at a direct labor wage rate of $22 per hour. There were 82 machine hours used on this job. The predetermined overhead rate is $30 per machine hour used. What is the total manufacturing cost of Job 651? A. $7,457 B. $2,460 C. $13,510 D. $3,850

Serena Corporation uses estimated manufacturing overhead costs of $880,000 and estimated direct labor hours of 200,000 in establishing manufacturing overhead rates. Allocated manufacturing overhead was $1,012,000 and actual manufacturing overhead was $970,000. What were the number of actual direct hours worked? A. 200,000 B. 230,000 C.181,443 D. 208,660

If manufacturing overhead has been overallocated during the period, and most of the jobs produced have been sold, then A. finished goods inventory should be increased B. Cost of Goods Sold on the income statement should be increased. C. Cost of Goods Sold on the income statement should be decreased D. work in process inventory should decreased

Under which of the following situations is Finished Goods Inventory debited and Work - in - Process Inventory account credited? A. Transfer of goods to the finished goods storeroom B. Purchased of goods on account C. Transfer goods out of the factory D. Transfer of material to Work - in - Process Inventory account

Beta Company uses a predetermined overhead rate based on machine hours to allocate manufacturing overhead to jobs. The company estimated that it would incur $600,100 of manufacturing overhead during the year and that 250,100 machine hours would be used. During the year, the company actually incurred manufacturing overhead costs of $582,100 and 240,100 machine hours were used. By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent and the final answer to the nearest dollar.) A. $5,860 underallocated B. $18,000 overallocated C. $18,000 underallocated D. $5,860 overallocated