Assume that the manufacturing overhead cost charged is greater than it actually incurred. Which of the...
Assume that the manufacturing overhead cost charged is greater than it actually incurred. Which of the following is not correct?
This happens when the estimated manufacturing overhead costs is greater than the actual ones incurred.
There will be an over-applied balance
COGS would be overstated without relevant adjusting entries
Inventory would be understated
Homework Answers
The answer is d. Inventory would be understated
This is because the overstated expense wont have any impact on the inventory value. The COGS will be overstated since there is an overstatement in expense.
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Assume that the manufacturing overhead cost charged is greater
than it actually incurred. Which of the...
Overhead cost variance is: Multiple Choice The difference between the overhead costs actually incurred and the...
Overhead cost variance is: Multiple Choice The difference between the overhead costs actually incurred and the overhead budgeted at the actual operating level. The difference between the actual overhead incurred during a period and the standard overhead applied. The difference between actual and budgeted cost caused by the difference between the actual price per unit and the budgeted price per unit. The costs that should be incurred under normal conditions to produce a specific product (or component) or to perform...
The overhead cost variance is: Multiple Choice The difference between the overhead costs actually incurred and...
The overhead cost variance is: Multiple Choice The difference between the overhead costs actually incurred and the overhead budgeted at the actual operating level. The difference betweene actual overhead incurred during a period and the standard overhead applied. The difference between actual and budgeted cost caused by the difference between the actual price per unit and the budgeted price per unit The costs that should be incurred under normal conditions to produce a specific product (or component) or to perform...
Overhead costs are overapplied if the amount applied to Work in Process is: Multiple Choice greater...
Overhead costs are overapplied if the amount applied to Work in Process is: Multiple Choice greater than estimated overhead. less than estimated overhead. greater than actual overhead incurred. less than actual overhead incurred.
Closing Manufacturing Overhead: Two Approaches. Olympia Company incurred actual manufacturing ove...
Closing Manufacturing Overhead: Two Approaches. Olympia Company incurred actual manufacturing overhead costs of $630,000 during the year ended December 31, 2012. A total of $570,000 in overhead was applied to jobs. At December 31, 2012, work-in-process inventory totals $200,000, and finished goods inventory totals $400,000. Cost of goods sold before adjustments totals $1,400,000 for the year. 1. Is overhead underapplied or overapplied? 2. Create the journal entry to close the manufacturing overhead account, assuming the balance is immaterial. 3. Create...
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...
Mattie Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data...
Mattie Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its year 2019 operations: Estimated manufacturing overhead $239,500 Estimated machine-hours 4,500 Actual manufacturing overhead $241,900 Actual machine hours 5,500 Use the data to answer the following questions (a - d). a. The predetermined overhead rate would be: b. The applied manufacturing overhead for the year is: c. Was the overhead for the year over applied or under applied? By how much? d. When...
30. The overhead control account records the actual overhead costs incurred and the overhead cost...
True or False
30. The overhead control account records the actual overhead costs incurred and the overhead costs allocated. 31. There are normally three inventory accounts in a manufacturer's general ledger; raw materials, cost of sales and finished goods. 32. When raw materials are purchased the raw materials inventory account is credited. 33. Actual overhead is debited to the overhead control account. 34. The journal entry to record overhead allocated is debit Work in Process and credit Overhead Control 35....
7. Overhead cost variance is: a. The difference between the overhead costs actually incurred and the...
7. Overhead cost variance is: a. The difference between the overhead costs actually incurred and the overhead budgeted at the actual operating level. b. The difference between the actual overhead incurred during a period and the standard overedd app C. The difference between actual and budaeted cost caused by the difference between the actual price per unit and the budgeted price per unit. d. The costs that should be incurred under normal conditions to produce a specific product (or component...
6. Mattie Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following...
6. Mattie Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its year 2019 operations: Estimated manufacturing overhead Estimated machine-hours Actual manufacturing overhead Actual machine hours $239,500 4,500 $241,900 5,500 Use the data to answer the following questions (8a - d). a. The predetermined overhead rate would be normal costing): b. The applied manufacturing overhead for the year is (normal costing): c. Was the overhead for the year over applied or under applied?...
skip 23,24,26 22. Hen Hao Professor Mullen, Inc applies overhead on the basis of machine hours....
skip 23,24,26
22. Hen Hao Professor Mullen, Inc applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under-or overapplication of overhead for the period: Estimated SS annual overhead cost $1,200,000 Actual SS annual overhead cost $1,155,000 Estimated machine hours 400,000 Actual machine hours 380,000 A) $1,140,000 applied and $15,000 overapplied B) $1,200,000 applied and $15,000 overapplied C) $1,140,000 applied and $15,000 underapplied D) $1,145,000 applied and neither under- nor overapplied 23. If...
The overhead cost variance is: Multiple Choice The difference between the overhead costs actually incurred and the overhead budgeted at the actual operating level. The difference betweene actual overhead incurred during a period and the standard overhead applied. The difference between actual and budgeted cost caused by the difference between the actual price per unit and the budgeted price per unit The costs that should be incurred under normal conditions to produce a specific product (or component) or to perform...
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...
True or False
30. The overhead control account records the actual overhead costs incurred and the overhead costs allocated. 31. There are normally three inventory accounts in a manufacturer's general ledger; raw materials, cost of sales and finished goods. 32. When raw materials are purchased the raw materials inventory account is credited. 33. Actual overhead is debited to the overhead control account. 34. The journal entry to record overhead allocated is debit Work in Process and credit Overhead Control 35....
7. Overhead cost variance is: a. The difference between the overhead costs actually incurred and the overhead budgeted at the actual operating level. b. The difference between the actual overhead incurred during a period and the standard overedd app C. The difference between actual and budaeted cost caused by the difference between the actual price per unit and the budgeted price per unit. d. The costs that should be incurred under normal conditions to produce a specific product (or component...
6. Mattie Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its year 2019 operations: Estimated manufacturing overhead Estimated machine-hours Actual manufacturing overhead Actual machine hours $239,500 4,500 $241,900 5,500 Use the data to answer the following questions (8a - d). a. The predetermined overhead rate would be normal costing): b. The applied manufacturing overhead for the year is (normal costing): c. Was the overhead for the year over applied or under applied?...
skip 23,24,26
22. Hen Hao Professor Mullen, Inc applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under-or overapplication of overhead for the period: Estimated SS annual overhead cost $1,200,000 Actual SS annual overhead cost $1,155,000 Estimated machine hours 400,000 Actual machine hours 380,000 A) $1,140,000 applied and $15,000 overapplied B) $1,200,000 applied and $15,000 overapplied C) $1,140,000 applied and $15,000 underapplied D) $1,145,000 applied and neither under- nor overapplied 23. If...
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