11.A cost driver is an activity base that is highly correlated with manufacturing overhead costs.
12.An overhead application rate is a device used to assign overhead costs to units of product in proportion to some "activity base" that can be traced directly to the manufactured products.
13.An activity-based costing system does not help managers make better product pricing decisions.
14.A collection of job cost sheets would be similar to a subsidiary ledger and the work-in-process account would be similar to the controlling account.
15.Metalworks Incorporated purchased $54,500 worth of direct materials to be used in Job #222. During the accounting period, Job #222 used $45,600 of direct materials. The amount of direct materials that would be shown in Job #222 Job Cost Sheet at the end of the accounting period should be $54,500, since this is the amount of direct materials the company had purchased for this particular job.
16.Metalworks applies manufacturing overhead on the basis of direct materials used in production. During the current period, direct materials used for job #123 amounted to $22,545. If Metalworks' overhead rate is 0.65 of direct materials used, the overhead applied to job #123 for the period was $15,000.
17.Metalworks employs 3 assembly workers that, on average, each work 40 hours per week and earn $9 per hour. During the current accounting period, Job #543 consumed 77 hours of direct labor totaling $693.
18.A credit balance in the manufacturing overhead account at month end indicates that the actual overhead costs were less than the amount of overhead costs applied to jobs.
19.A debit balance in the manufacturing overhead account at month end indicates overhead applied to jobs was greater than the actual overhead costs.
20.When goods are sold, a journal entry is made transferring the goods from cost of goods sold to finished goods.