131.The Winston Company estimates that the factory overhead for the following year will be $1,250,000. The companyhas decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000hours. The total machine hours for the year was 54,300. The actual factory overhead for the year was$1,375,000. Determine the over- or underapplied amount for the year.
a.$17,500 overappliedb. $17,500 underapplied
c. $118,250 overappliedd. $118,250 underapplied
132.Sanders Inc. has applied $567,988 of overhead to jobs in the cost ledger. Actual overhead at the end of the year is$575,000. The adjustment for over or underapplied overhead is
a.$7,012 overapplied, increase Cost of Goods Sold
b.$7,012 underapplied, increase Cost of Goods Sold
c.$7,012 overapplied, decrease Cost of Goods Sold
d.$7,012 underapplied, decrease Cost of Goods Sold
133.All of the following are true regarding product costs
except
a.product costs are found on the balance sheet until they are sold
b.product costs consist of direct labor, direct materials, and factory overhead
c.product costs can be found in three accounts on the balance sheet
d.product costs include sales and administrative expenses
134.Job cost sheets can provide information to managers for all
except
a.the cost impact of materials changes
b.the cost impact of continuous improvement in the manufacturing process
c.the cost impact of materials price or direct labor rate changes over time
d.utilities, managerial salaries, and depreciation of computers in the corporate office
135.A difference in quantity of materials used on two comparable jobs may be caused by
a.inadequately trained employees
b.poor quality materials
c.employee carelessness
d.all of these
136.Which of the following would
not
be found in the accounting system of a service provider?
a.cost ledger
b.finished goods ledger
c.deferred revenue account
d.job cost sheets
137.Which of the following entries would
notbe found on the books of a service provider?
a.a debit to Work in Process; and a credit to Materials
b.a debit to Work in Process; and a credit to Wages Payable
c.a debit to Work in Process; and a credit to Overhead
d.a debit to Cost of Services; and a credit to Work in Process
138.In a job order cost accounting system used by a service business, which of the following items would normally
notbe included as part of overhead?
a.materials
b.direct labor
c.rent
d.supplies
139.The direct labor and overhead costs of providing services to clients are accumulated in
a.finished services expense
b.work in process
c.administrative salaries expense
d.overhead
140.When a job is completed in a service organization, the job costs are transferred to the
a.work in process account
b.cost of services account
c.finished goods account
d.cost of goods sold account