Answer the following True or False Questions 1 i)Applied overhead is calculated by dividing the actual...
Answer the following True or False Questions
1
i)Applied overhead is calculated by dividing the actual activity
level of application base by the predetermined overhead rate.
True/False?
ii)Overapplied overhead means that not enough overhead cost was
charged to products as they were made.
True/False?
iii)As manufacturing overhead is incurred, it is added to the
individual job.
True/False?
Homework Answers
|
1. False Applied overhead is calculated by multiplying actual activity level with the predetermined overhead rate |
|
2. False Over-applied overhead means the applied overhead is higher than what was actually incurred. |
| 3. False |
Add Answer to:
Answer the following True or False Questions
1
i)Applied overhead is calculated by dividing the actual...
7 11, the formula to calculate the amo ved by the actual manufacturing overhe D ead...
7
11, the formula to calculate the amo ved by the actual manufacturing overhe D ead rate times the actual manufacturing overhead incurto Llumined overhead rate divided by the actual units of allocation D. Predetermined overhead rate times the actual units of allocation base char 5. When closing overapplied manufacturing overhead to cost of goods so would be true? A. Work in process will decrease. B. Cost of goods sold will increase. C. Net income will decrease. D. Gross margin...
HOW WOULD I RESPOND TO THESE? - The predetermined overhead rate is based on the relationship...
HOW WOULD I RESPOND TO THESE? - The predetermined overhead rate is based on the relationship between estimated annual overhead costs and estimated annual operating activity, expressed in terms of a common activity base. The company may state the activity in terms of direct labor costs, direct labor hours, machine hours, or any other measure that provides an equitable basis for applying overhead costs to jobs. Companies establish the predetermined overhead rate at the beginning of the year. The formula...
Which of the following is not classified as a direct labor cost? A. Wages of the...
Which of the following is not classified as a direct labor cost? A. Wages of the store manager at Starbucks. B. Wages of the assemblers who assemble planes at Boeing. C. Wages of computer animators at Pixar. D. Ring engravers at Josten’s. If the cost of goods sold is less than the cost of goods manufactured, then A. Finished Goods Inventory increased during the period. B. Finished Goods Inventory decreased during the period. C. Overhead was overapplied. D. Overhead was...
1. The perpetual inventory method cannot be used in a job order cost system. True False...
1.
The perpetual inventory method cannot be used in a job order
cost system.
True
False
2. A job order cost system and a process cost system are two
alternative methods for valuing inventories.
True
False
3. Accumulating and assigning manufacturing costs are two
important activities in a job order cost system.
True
False
4. When raw materials are purchased, the Work in Process
Inventory account is debited.
True
False
5. Job order cost sheets constitute the subsidiary ledger of...
FORUM DESCRIPTION Product costing involves charging the cost of Direct Materials, Direct Labor and Overhead to...
FORUM DESCRIPTION Product costing involves charging the cost of Direct Materials, Direct Labor and Overhead to products. Any product that you have ever seen or service that you have ever paid for, must have incorporated at least one these three elements of cost le. DM, DL, and OH. In both Job Order costing and Process Costing, the cost of Direct Materials and the cost of Direct Labor are both easily traceable to the products. Cost of Direct Materials are traced...
Which of the following statement is true? O Under-applied overhead variance results when actual overhead cost...
Which of the following statement is true? O Under-applied overhead variance results when actual overhead cost is lower than the applied overhead costs. o Overhead variance is closed to FG inventory only if the amount is immaterial O Companies producing customized products in small quantities use job order costing system O Job order costing system is always superior to process costing system
Access Product Inc. Incurred the following actual overhead cost for the month of November Indirect materials...
Access Product Inc. Incurred the following actual overhead cost for the month of November Indirect materials $ 40000 Indirect Labor 36000 Rent 6000 Equipment Depreciations 13000 Overhead is applied based on predetermined rate of $ 24 per machine hours, and 5100 machine hours were used during november. Prepared journal entry record actual overhead cost for november. assume that labor costs will be paid next month and that rent was prepaid. prepare journal entry to record manufacturing overhead applied to...
Saved 1 Help Save & Ein A manufacturing uses a predetermined overhead rate of $19.50 per...
Saved 1 Help Save & Ein A manufacturing uses a predetermined overhead rate of $19.50 per direct labor-hour. This predetermined rate was based on a cout formula that estimates $259,350 of total manufacturing overhead for an estimated activity level of 3,300 direct labor hours The company actually incurred $253,000 of manufacturing overhead and 12,800 direct labor hours during the period 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period 2. Assume that the company's underapplied or...
Please answer all parts, Thanks! Problem 3-12 Predetermined Overhead Rate; Disposing of Underapplied or Overapplied Overhead...
Please answer all parts, Thanks!
Problem 3-12 Predetermined Overhead Rate; Disposing of Underapplied or Overapplied Overhead (LO3-4) Luzadis Company makes furniture using the latest automated technology. The company uses a job- order costing system and applies manufacturing overhead cost to products on the basis of machine- hours. The predetermined overhead rate was based on a cost formula that estimates $980,000 of total manufacturing overhead for an estimated activity level of 98.000 machine-hours. During the year, a large quantity of furniture...
True or False 6. An architect is a business which is likely to use job costing....
True or False
6. An architect is a business which is likely to use job costing. 7. Prime costs are direct labour and direct material. 8. GAAP requires a product cost for finished goods inventory only. 9 Goods that are in production but not yet complete are classified as work in process. 10. Inventory is reported at cost in the statement of financial position. 11. Cost of sales is shown in the statement of financial position 12. Non-manufacturing costs are...
7
11, the formula to calculate the amo ved by the actual manufacturing overhe D ead rate times the actual manufacturing overhead incurto Llumined overhead rate divided by the actual units of allocation D. Predetermined overhead rate times the actual units of allocation base char 5. When closing overapplied manufacturing overhead to cost of goods so would be true? A. Work in process will decrease. B. Cost of goods sold will increase. C. Net income will decrease. D. Gross margin...
1.
The perpetual inventory method cannot be used in a job order
cost system.
True
False
2. A job order cost system and a process cost system are two
alternative methods for valuing inventories.
True
False
3. Accumulating and assigning manufacturing costs are two
important activities in a job order cost system.
True
False
4. When raw materials are purchased, the Work in Process
Inventory account is debited.
True
False
5. Job order cost sheets constitute the subsidiary ledger of...
FORUM DESCRIPTION Product costing involves charging the cost of Direct Materials, Direct Labor and Overhead to products. Any product that you have ever seen or service that you have ever paid for, must have incorporated at least one these three elements of cost le. DM, DL, and OH. In both Job Order costing and Process Costing, the cost of Direct Materials and the cost of Direct Labor are both easily traceable to the products. Cost of Direct Materials are traced...
Which of the following statement is true? O Under-applied overhead variance results when actual overhead cost is lower than the applied overhead costs. o Overhead variance is closed to FG inventory only if the amount is immaterial O Companies producing customized products in small quantities use job order costing system O Job order costing system is always superior to process costing system
Saved 1 Help Save & Ein A manufacturing uses a predetermined overhead rate of $19.50 per direct labor-hour. This predetermined rate was based on a cout formula that estimates $259,350 of total manufacturing overhead for an estimated activity level of 3,300 direct labor hours The company actually incurred $253,000 of manufacturing overhead and 12,800 direct labor hours during the period 1. Determine the amount of underapplied or overapplied manufacturing overhead for the period 2. Assume that the company's underapplied or...
Please answer all parts, Thanks!
Problem 3-12 Predetermined Overhead Rate; Disposing of Underapplied or Overapplied Overhead (LO3-4) Luzadis Company makes furniture using the latest automated technology. The company uses a job- order costing system and applies manufacturing overhead cost to products on the basis of machine- hours. The predetermined overhead rate was based on a cost formula that estimates $980,000 of total manufacturing overhead for an estimated activity level of 98.000 machine-hours. During the year, a large quantity of furniture...
True or False
6. An architect is a business which is likely to use job costing. 7. Prime costs are direct labour and direct material. 8. GAAP requires a product cost for finished goods inventory only. 9 Goods that are in production but not yet complete are classified as work in process. 10. Inventory is reported at cost in the statement of financial position. 11. Cost of sales is shown in the statement of financial position 12. Non-manufacturing costs are...
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