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Questions
Q:
Altina Company just finished job A40. It included $400 of direct materials, and $3,600 of direct labor. Altina uses a predetermined manufacturing overhead rate based on a percentage of direct labor costs. That rate is 40%. The entry to record the completion of the job should be a:
A) debit to Finished goods $5,440, and a credit to Materials inventory $5,440.
B) debit to Cost of goods sold $5,440, and a credit to Finished goods $5,440.
C) debit to Finished goods $5,440, and a credit to Work in process $5,440.
D) debit to Work in process $5,440, and a credit to Finished goods $5,440.
Q:
Q:
Lakeside Company estimated manufacturing overhead costs for 2012 at $378,000, based on 180,000 estimated direct labor hours. Actual direct labor hours for 2012 totaled 195,000. The manufacturing overhead account contains debit entries totaling $391,500. The manufacturing overhead for 2012 was:
A) $31,500 underallocated.
B) $31,500 overallocated.
C) $18,000 underallocated.
D) $18,000 overallocated.
Q:
Underallocated manufacturing overhead costs are always the result of which of the following situations?
A) Allocated overhead costs are less than actual overhead costs.
B) Actual overhead costs are less than allocated overhead costs.
C) Actual overhead costs are greater than estimated overhead costs.
D) Estimated overhead costs are greater than actual overhead costs.
Q:
Underallocation of manufacturing overhead would require which of the following year-end adjustments?
A) A credit to Finished goods inventory
B) A credit to Manufacturing overhead
C) A debit to Work-in process inventory
D) A credit to Cost of goods sold
Q:
Overallocation of manufacturing overhead would require which of the following year-end adjustments?
A) A credit to Finished goods inventory
B) A credit to Manufacturing overhead
C) A debit to Work-in process inventory
D) A credit to Cost of goods sold
Q:
On January 1, 2012, Jackson Company's work in process inventory account had a balance of $65,000. During 2012, materials requisitioned for use in production amounted to $70,000, of which $66,000 represented direct materials. Factory wages for the period were $209,000, of which $186,400 were for direct labor. Manufacturing overhead is allocated on the basis of 60% of direct labor cost. Actual overhead was $116,440. Jobs costing $353,240 were completed during 2012. The December 31, 2012, balance in work in process inventory is:
A) $80,000.
B) $72,800.
C) $107,200.
D) $76,000.
Q:
On January 1, 2012, Matthew Company's work in process inventory account had a balance of $30,000. During 2012, $58,000 of direct materials was placed into production. Manufacturing wages incurred amounted to $84,000, of which $66,000 were for direct labor. Manufacturing overhead is allocated on the basis of 120% of direct labor cost. Actual manufacturing overhead was $90,000. Jobs costing $220,400 were completed during 2009. What is the December 31, 2012 balance in work in process inventory?
A) $16,800
B) $34,800
C) $6,000
D) $12,800
Q:
During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $506,000 of manufacturing overhead costs. Overhead costs have been underallocated.
Q:
Cost of goods sold needs to be debited at year-end when the manufacturing overhead is overallocated in order to clear the overhead account to zero.
Q:
Overallocated manufacturing overhead occurs when the manufacturing overhead allocated to work in process inventory is less than the amount actually incurred.
Q:
When jobs are completed, the total cost of the job is recorded as a debit to Finished goods and a credit to Work in process.
Q:
The cost of goods manufactured is recorded as a debit to the Finished goods account.
Q:
During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $460,000 of manufacturing overhead costs. At year-end, the adjustment entry needed to clear the overhead balance to zero will include a debit to Cost of goods sold.
Q:
During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $506,000 of manufacturing overhead costs. At year-end, the adjustment entry needed to clear the overhead balance to zero will include a debit to Cost of goods sold.
Q:
During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $492,000 of manufacturing overhead costs. Overhead costs have been underallocated.
Q:
The cost of goods manufactured is recorded as a debit to the Work in process account.
Q:
Q:
Q:
Q:
The records at Smith and Jones Company show Job. No. 110 charged with $11,000 of direct materials and $12,500 of direct labor. Smith and Jones Company allocates manufacturing overhead at 85% of direct labor cost. What is the total cost of Job No. 110?
A) $20,625
B) $34,125
C) $22,500
D) $21,625
Q:
Q:
Q:
Felton Quality Productions Company has provided the following information for the year 2012:
Actual manufacturing overhead costs incurred $89,770
Manufacturing overhead costs allocated to production $95,200
Actual direct materials cost $224,000
Actual direct labor cost $93,750
Actual direct labor hours 18,500 direct labor hours
Actual machine hours 56,000 machine hours
Based on the above information, what was Felton's allocation rate? (Hint: for this type of problem, the "trial and error" method may be used.)
A) $1.70 per machine hour
B) 52% of direct labor cost
C) 180% of direct materials cost
D) $24.80 per direct labor hour
Q:
Q-dot Manufacturing Company has provided the following information for the year 2012:
Actual manufacturing overhead costs incurred $199,900
Manufacturing overhead costs allocated to production $189,000
Actual direct materials cost $560,000
Actual direct labor cost $333,000
Actual direct labor hours 9,450 direct labor hours
Actual machine hours 180,000 machine hours
Based on the above information, what was Q-dot's allocation rate? (Hint: for this type of problem, the "trial and error" method may be used.)
A) $7.60 per machine hour
B) 132% of direct labor cost
C) 80% of direct materials cost
D) $20 per direct labor hour
Q:
Petraeus Fabrication Company has provided the following information for the year 2012:
Actual manufacturing overhead costs incurred $268,000
Manufacturing overhead costs allocated to production $259,200
Actual direct materials cost $800,000
Actual direct labor cost $144,000
Actual direct labor hours 3,200 direct labor hours
Actual machine hours 10,900 machine hours
Based on the above information, what was Petraeus's allocation rate? (Hint: for this type of problem, the "trial and error" method may be used.)
A) $95 per direct labor hour
B) 180% of direct labor cost
C) $8.50 per machine hour
D) 12% of direct materials cost
Q:
Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data:
Total manufacturing overhead estimated at the beginning of the year: $140,000
Total direct labor costs estimated at the beginning of the year: $350,000
Total direct labor hours estimated at the beginning of the year: 12,000 direct labor hours
Actual manufacturing overhead costs for the year: $159,000
Actual direct labor costs for the year: $362,000
Actual direct labor hours for the year: 12,400 direct labor hours
Based on the data above, what was the preliminary ending balance in the manufacturing overhead account, prior to the year-end adjustment to clear the balance to zero? (Please round to nearest whole dollar.)
A) $19,000 credit balance
B) $19,000 debit balance
C) $14,200 credit balance
D) $14,200 debit balance
Q:
Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data:
Total manufacturing overhead estimated at the beginning of the year: $140,000
Total direct labor costs estimated at the beginning of the year: $350,000
Total direct labor hours estimated at the beginning of the year: 12,000 direct labor hours
Actual manufacturing overhead costs for the year: $159,000
Actual direct labor costs for the year: $362,000
Actual direct labor hours for the year: 12,400 direct labor hours
Based on the data above, how much manufacturing overhead was allocated to production? (Please round to nearest whole dollar.)
A) $825,360
B) $905,000
C) $144,800
D) $159,280
Q:
Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data:
Total manufacturing overhead estimated at the beginning of the year: $140,000
Total direct labor costs estimated at the beginning of the year: $350,000
Total direct labor hours estimated at the beginning of the year: 12,000 direct labor hours
Actual manufacturing overhead costs for the year: $159,000
Actual direct labor costs for the year: $362,000
Actual direct labor hours for the year: 12,400 direct labor hours
Based on the data above, what was the allocation rate for 2012? (Please round to nearest whole percent.)
A) 40%
B) 44%
C) 250%
D) 228%
Q:
The Quadrangle Fabrication Plant had a fire at the beginning of 2013 and most of the records for the year 2012 were lost. Some data for the year 2012 were located by the accountants and are shown below.
Total manufacturing overhead estimated at the beginning of the year: $105,840
Total direct labor costs estimated at the beginning of the year: $186,000
Total direct labor hours estimated at the beginning of the year: 3,600 direct labor hours
Actual manufacturing overhead costs for the year: $99,760
Actual direct labor costs for the year: $142,000
Actual direct labor hours for the year: 2,950 direct labor hours
The company bases its manufacturing overhead allocation on direct labor hours. What was the preliminary ending balance in the manufacturing overhead account prior to the year-end adjustment to clear the balance to zero? (Please round to the nearest whole dollar.)
A) $6,080 credit balance
B) $4,982 debit balance
C) $13,030 credit balance
D) $13,030 debit balance
Q:
The Quadrangle Fabrication Plant had a fire at the beginning of 2013 and most of the records for the year 2012 were lost. Some data for the year 2012 were located by the accountants and are shown below.
Total manufacturing overhead estimated at the beginning of the year: $105,840
Total direct labor costs estimated at the beginning of the year: $186,000
Total direct labor hours estimated at the beginning of the year: 3,600 direct labor hours
Actual manufacturing overhead costs for the year: $99,760
Actual direct labor costs for the year: $142,000
Actual direct labor hours for the year: 2,950 direct labor hours
The company bases its manufacturing overhead allocation on direct labor hours. How much manufacturing overhead was allocated to production in 2012? (Please round to the nearest whole dollar.)
A) $105,816
B) $86,730
C) $99,769
D) $81,745
Q:
The Quadrangle Fabrication Plant had a fire at the beginning of 2013 and most of the records for the year 2012 were lost. Some data for the year 2012 were located by the accountants and are shown below.
Total manufacturing overhead estimated at the beginning of the year: $105,840
Total direct labor costs estimated at the beginning of the year: $186,000
Total direct labor hours estimated at the beginning of the year: 3,600 direct labor hours
Actual manufacturing overhead costs for the year: $99,760
Actual direct labor costs for the year: $142,000
Actual direct labor hours for the year: 2,950 direct labor hours
The company bases its manufacturing overhead allocation on direct labor hours. What was the predetermined manufacturing overhead allocation rate for 2012? (Please round to the nearest cent.)
A) $35.87
B) $33.82
C) $29.40
D) $27.71
Q:
In 2012, the Doric Agricultural Products Company used a predetermined manufacturing overhead rate of 150% times direct labor cost. Information for the year is as follows:
Actual direct materials cost $812,500
Actual direct labor cost $180,000
Actual overhead costs incurred: $264,000
Total direct labor hours 5,520
What was the preliminary ending balance in the manufacturing overhead account, before the year-end adjustment to clear the balance to zero?
A) Credit of $6,000
B) Debit of $6,000
C) Credit of $5,900
D) Debit of $4,300
Q:
In 2012, the Cameratta Company used a predetermined manufacturing overhead rate of $4.75 per machine hour. Information for the year is as follows:
Actual overhead costs incurred:
Indirect materials $5,200
Indirect labor $3,750
Plant depreciation $4,800
Plant utilities and insurance $9,530
Other plant overhead costs $12,700
Total machine hours used during the year 7,520
What was the preliminary ending balance in the manufacturing overhead account before the year-end adjustment to clear the balance to zero?
A) Credit of $260
B) Debit of $550
C) Credit of $330
D) Debit of $260
Q:
Barbicon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they formulated a rate of 20% times the direct labor cost. In June, 2012, Barbicon completed job number 13C. Job stats are as follows:
Direct materials cost $6,220
Direct labor cost $900
Direct labor hours 32 hours
Units of product produced: 250 kilos
How much was the cost per unit (cost per kilo) of finished product? (Please round to the nearest cent.)
A) $29.20
B) $33.46
C) $28.48
D) $36.70
Q:
Barbicon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they formulated a rate of 20% times the direct labor cost. In June, 2012, Barbicon completed job number 13C. Job stats are as follows:
Direct materials cost $6,220
Direct labor cost $900
Direct labor hours 32 hours
Units of product produced: 250 kilos
How much was the total job cost?
A) $8,364
B) $180
C) $7,120
D) $7,300
Q:
Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. In June, 2012, Arabica completed job number 511. Job stats are as follows:
Direct materials cost $27,500
Direct labor cost $13,000
Direct labor hours 400 hours
Units of product produced: 200 crates
How much was the cost per unit (cost per crate) of finished product? (Please round to the nearest cent.)
A) $374.38
B) $202.50
C) $254.50
D) $283.75
Q:
Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. In June, 2012, Arabica completed job number 511. Job stats are as follows:
Direct materials cost $27,500
Direct labor cost $13,000
Direct labor hours 400 hours
Units of product produced: 200 crates
How much was the total job cost?
A) $40,500
B) $56,750
C) $50,900
D) $74,875
Q:
Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. In June, 2012, Arabica completed job number 511. Job stats are as follows:
Direct materials cost $27,500
Direct labor cost $13,000
Direct labor hours 400 hours
Units of product produced: 200 crates
How much manufacturing overhead was allocated to the job?
A) $16,250
B) $10,400
C) $5,000
D) $34,375
Q:
Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. What was the predetermined manufacturing overhead rate?
A) 80% of direct labor cost
B) $1.25 per direct labor hour
C) 125% of direct labor cost
D) $35.00 per direct labor hour
Q:
Inglesias Company just completed job number 12. See details below.
Direct labor cost: $840
Direct materials cost: $1,100
Machine hours for milling machinery: 7
Direct labor hours: 22
Predetermined manufacturing overhead allocation rate: $90 per machine hour
Number of units of finished product: 25 units
What was cost per unit of finished product? (Please round to nearest cent.)
A) $77.88
B) $102.80
C) $12.40
D) $156.80
Q:
Halcyon Company just completed job number 10-B. See details below.
Direct labor cost: $2,040
Direct materials cost: $90
Direct labor hours: 75
Predetermined manufacturing overhead allocation rate: $34.00 per direct labor hour
Number of units of finished product: 200 units
What was cost per unit of finished product? (Please round to nearest cent.)
A) $26.40
B) $46.80
C) $25.50
D) $23.40
Q:
Halcyon Company just completed job number 10B. See details below.
Direct labor cost: $2,040
Direct materials cost: $90
Machine hours for milling machinery: 5
Direct labor hours: 75
Predetermined manufacturing overhead allocation rate: $34.00 per direct labor hour
What was the total job cost?
A) $2,640
B) $4,680
C) $2,550
D) $4,590
Q:
Gardner Machine Shop uses a predetermined manufacturing overhead rate of $63.20 per direct labor hour. In January, Gardener completed job number A33, which included 15 direct labor hours. Which of the following correctly describes the journal entry needed to allocate overhead to the job?
A) Debit Finished goods for $948, credit Manufacturing overhead for $948
B) Debit Manufacturing overhead for $948, credit Work in process for $948
C) Debit Work in process for $948, credit Manufacturing overhead for $948
D) Debit Cost of goods sold for $948, credit Finished goods for $948
Q:
Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $316,000. They will allocate based on direct labor hours. Gardner estimates 5,000 direct labor hours for the coming year. In January, Gardener completed job number A33, which included 15 direct labor hours. How much overhead was allocated to the job?
A) $948
B) $632
C) $1,204
D) $990
Q:
Inglesias Company just completed job number 12. See details below.
Direct labor cost: $840
Direct materials cost: $1,100
Machine hours for milling machinery: 7
Direct labor hours: 22
Predetermined manufacturing overhead allocation rate: $90 per machine hour
What was the total job cost?
A) $2,570
B) $1,940
C) $1,947
D) $3.920
Q:
Haverhill Products just completed job number 440. In addition to direct labor and direct materials cost, Haverhill allocated $450 of manufacturing overhead to the job. Which of the following describes the correct journal entry to record the allocation of overhead to the job?
A) Debit Finished goods, credit Manufacturing overhead
B) Debit Work in process, credit Cash
C) Debit Manufacturing overhead, credit Work in process
D) Debit Work in process, credit Manufacturing overhead
Q:
Falstaff Products estimated manufacturing overhead costs for the year at $500,000. Falstaff also estimated 8,000 machine hours for the year. Falstaff bases their predetermined manufacturing overhead rate on machine hours. On January 31, job 300 was completed. It required 12 machine hours to produce. How much manufacturing overhead was allocated to the job?
A) $62.50
B) $19.20
C) $750.00
D) $42.00
Q:
Falstaff Products allocates manufacturing overhead with a rate of $62.50 per machine hour. Job number 300 was just completed. It used 12 machine hours. How much overhead was allocated to the job?
A) $625
B) $75
C) $750
D) $7,500
Q:
Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $316,000. They will allocate based on direct labor hours. Gardner estimates 5,000 direct labor hours for the coming year. What is the predetermined manufacturing overhead rate?
A) $6.32 per direct labor hour
B) $0.016 per direct labor hour
C) $63.20 per direct labor hour
D) $16.00 per direct labor hour
Q:
Falstaff Products estimates manufacturing overhead costs for the coming year at $500,000. Falstaff will allocate based on machine hours. Falstaff estimates 8,000 machine hours for the coming year. What is the predetermined manufacturing overhead rate?
A) $62.50 per machine hour
B) $0.016 per machine hour
C) $32.00 per machine hour
D) $6.25 per machine hour
Q:
When is the predetermined manufacturing overhead rate for a given production year calculated?
A) At the end of the production year
B) Before the production year begins
C) After each job is completed
D) At the mid-point of the production year
Q:
When calculating the predetermined manufacturing overhead rate, what is the correct basis of calculation?
A) Estimated overhead costs divided by the number of days in a year
B) Estimated amount of the cost driver divided by the estimated total overhead costs
C) Actual overhead costs of the prior year divided by the actual amount of the cost driver or allocation base
D) Estimated overhead costs divided by the estimated amount of the cost driver or allocation base
Q:
Which of the following correctly describes the predetermined manufacturing overhead rate?
A) The rate for factory utilities costs
B) The rate of actual overhead costs per day
C) The rate used to allocate overhead to production
D) The rate of increase in factory costs
Q:
Which of the following would NOT be considered a manufacturing overhead cost?
A) Insurance for the factory
B) Indirect labor cost
C) Property tax for the plant
D) Direct labor
Q:
Which of the following would NOT be considered a manufacturing overhead cost?
A) Depreciation of plant equipment
B) Direct labor cost
C) Plant utilities costs
D) Indirect labor
Q:
Which of the following correctly describes the term cost driver?
A) The inflation rate which causes costs to rise
B) The initial purchase price of direct materials
C) The primary factor which is correlated with the amount of cost incurred to produce a product
D) The total material, labor, and overhead cost of a completed job
Q:
Which of the following describes the allocation base for allocating manufacturing overhead costs?
A) The factor that reflects the relationship between goods produced and the amount of overhead costs incurred
B) The estimated base amount of manufacturing overhead costs in a year
C) The percentage used to allocate direct labor to work in process
D) The formula for allocating depreciation expense over the life on an asset
Q:
When manufacturing overhead costs are incurred, the amounts are recorded as a credit to Manufacturing overhead.
Q:
When manufacturing overhead is allocated, the amount is recorded as a debit to Work in process and a credit to Manufacturing overhead.
Q:
When manufacturing overhead is allocated, the amount is recorded as a debit to Finished goods and a credit to Work in process.
Q:
In a manufacturing operation, taxes and insurance for the plant should be debited to Manufacturing overhead.
Q:
The entry to allocate manufacturing overhead costs to work in process requires a debit to Manufacturing overhead.
Q:
In a manufacturing operation, depreciation of the plant and plant equipment should be debited to Depreciation expense.
Q:
All manufacturing overhead costs incurred are accumulated as debits to a general ledger account titled Manufacturing overhead.
Q:
Q:
Q:
Q:
Which of the following correctly describes the term conversion costs?
A) The combination of direct plus indirect labor costs
B) The combination of indirect labor plus indirect materials cost
C) The combination of direct materials, direct labor, and manufacturing overhead costs
D) The combination of direct labor and manufacturing overhead costs
Q:
Q:
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Q:
The journal entry to record the incurrence of $1,500 of direct labor and $200 of indirect labor includes which of the following?
A) Debit to Manufacturing overhead for $1,700
B) Debit to Work in process inventory for $1,500 and debit to Finished goods for $200
C) Debit to Work in process inventory for $1,700
D) Debit to Work in process for $1,500, debit to Manufacturing overhead for $200
Q:
The journal entry to issue $500 of direct materials and $30 of indirect materials to production includes which of the following?
A) Debit to Work in process for $500 and debit to Finished goods for $30
B) Debit to Manufacturing overhead for $530
C) Debit to Work in process for $500 and debit to Manufacturing overhead for $30
D) Debit to Work in process inventory for $530
Q:
In job order costing, the journal entry to issue indirect materials to production should include which of the following?
A) Credit to Finished goods inventory
B) Credit to Materials inventory
C) Credit to Manufacturing overhead
D) Credit to Work in process inventory
Q:
Which of the following would be included in the journal entry to record the requisition of indirect materials?
A) Debit to Manufacturing overhead
B) Debit to Work in process inventory
C) Debit to Materials inventory
D) Debit to Finished goods inventory
Q:
Which of the following would be included in the journal entry to record the incurrence of indirect labor costs?
A) Debit to Manufacturing overhead
B) Debit to Wages payable
C) Debit to Finished goods inventory
D) Debit to Work in process inventory
Q:
Which of the following would be included in the journal entry to record direct labor costs actually incurred?
A) Debit to Work in process Inventory
B) Debit to Wages payable
C) Debit to Manufacturing overhead
D) Debit to Finished goods inventory
Q:
Which of the following would be included in the journal entry to record the requisition of direct materials?
A) Debit to Cost of goods sold
B) Debit to Work in process inventory
C) Debit to Finished goods inventory
D) Debit to Materials inventory