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Exam 2: Job Order Costing

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Question 31

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The following budget data are available for Oldest Company: If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is

A) $7.50
B) $.13
C) $.061
D) $16.50

E) B) and D)
F) All of the above

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Question 32

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The balance of Material Q on May 1 and the receipts and issuances during May are as follows:

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Determine the cost of each of ...

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Question 33

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The Tulsa Company allocates overhead based on a predetermined overhead rate of $9.00 per direct labor hour. Job S35 required 8 tons of direct material at a cost of $600.00 per ton and took employees who earn $21.00 per hour a total of 80 hours to complete. What is the total cost of Job S35?

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead, which have entered into the manufacturing process but are associated with products that have not been finished, is reported as direct materials inventory.

Technics Inc., a manufacturing company, utilizes job order costing. Each division establishes its own estimates regarding overhead which are as follows: Required: If Division A allocates overhead on the basis of machine hours, and Division B allocates overhead as a percentage of direct labor costs, what would the predetermined overhead rate be for each division?

If the underapplied factory overhead amount is immaterial, it is transferred to Cost of Goods Sold at the end of the fiscal year.

A widely used activity base for developing factory overhead rates in highly automated settings is:

A service organization will not use the job order costing method because it has no direct materials.

For which of the following businesses would the process cost system be appropriate?

The Cavy Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs was 4,780. What is the amount that will be applied to all of the jobs for the month of April?

The document authorizing the issuance of materials from the storeroom is the:

Materials purchased on account during the month amounted to $180,000. Materials requisitioned and placed in production totaled $165,000. From the following, select the entry to record the transaction on the day the materials were bought.

The job order costing system is not used by service organizations.

A process cost accounting system accumulates costs for each of the departments or processes within the factory.

Which of the following would most likely use a job order costing system?

List the accounts used in the cost flow for (a) a manufacturer and (b) a service provider.

A difference in quantity of materials used on two comparable jobs may be caused by:

A law firm would use a job order cost system to accumulate all of the costs associated with a particular client engagement, such as lawyer time, copying charges, filing fees, and overhead.

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in cost accounting systems.

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?