49.Marty's Metal Shop uses a job order cost system. It applies overhead to jobs at a rate of 175% of direct labor costs. Job No. 2617 required $800 in direct labor costs. The job was initially...







49.Marty's Metal Shop uses a job order cost system. It applies overhead to jobs at a rate of 175% of direct labor costs. Job No. 2617 required $800 in direct labor costs. The job was initially budgeted to require $850 in direct labor costs. Overhead applied to Job No. 2617 during the period amounted to:






A. $850.





B. $1,400.





C. $1,275.





D. Some other amount.









Riverview Company's budget for the coming year includes $6,000,000 for manufacturing overhead, 50,000 hours of direct labor, and 250,000 hours of machine time.





50.Refer to the above data. If Riverview applies overhead using a predetermined rate based on machine-hours, what amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.25 labor hours to complete?






A. $12.00.





B. $16.00.





C. $20.00.





D. Some other amount.









51.Refer to the above data. If Riverview applies overhead using a predetermined rate based on labor-hours, what amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.25 labor hours to complete?






A. $16.00.





B. $30.00.





C. $20.00.





D. Some other amount.









52.A job cost sheet usually contains a record of each of the following
except:






A. The cost of direct materials charged to a particular job.





B. The overhead costs actually incurred on a particular job.





C. The cost of direct labor charged to a particular job.





D. The overhead cost applied to a particular job.











53.Which of the following costing systems would always use job cost sheets?






A. Job order costing.





B. Process costing.





C. Activity-based costing.





D. All three systems.











54.A job cost sheet should:






A. Contain information that summarizes all jobs finished.





B. Contain information on each individual job in process.





C. Contain only the direct costs of a particular job.





D. Only be used for jobs that have been completed.











55.The document that provides information for the cost of goods manufactured is:






A. The job cost sheet.





B. Time cards.





C. Material requisition.





D. Payroll check.











56.A job cost sheet will include:






A. All raw materials purchased.





B. Actual overhead.





C. Direct labor applied to production.





D. Selling costs.











57.A job order cost system traces direct materials cost to a particular job by means of:






A. Materials requisitions.





B. A production budget.





C. The Materials Inventory controlling account.





D. A debit to the job cost sheet for the job.











58.At the end of the accounting period, applied overhead was larger than actual overhead by a material amount. The over-applied overhead should be:






A. Treated as an extraordinary gain.





B. Treated as an extraordinary loss.





C. Apportioned among Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold.





D. Ignored; actual overhead is determined only for internal control purposes.











May 15, 2022
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