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In a normal costing system the manufacturing overhead control account

07/12/2021 Client: muhammad11 Deadline: 2 Day

1. Under-Applied Overhead Occurs When The Balance In The Manufacturing Overhead Control Account Is:

1. Under-applied overhead occurs when the balance in the Manufacturing Overhead Control account is:

greater than the balance in the Applied Manufacturing Overhead account.

equal to the balance in the Applied Manufacturing Overhead account.

less than the balance in the Applied Manufacturing Overhead account.

less than the balance in the Finished Goods Inventory account.

2. Which of the following companies would most likely use job costing?

Paper manufacturer

Paint producer

Breakfast cereal maker

Advertising agency

3. If a company multiplies its predetermined overhead rate by the budgeted allocation base, it is using:

standard costing.

normal costing.

actual costing.

budget costing.

ideal costing.

4. Before prorating the manufacturing overhead costs at the end of 2008, the Cost of Goods Sold and Finished Goods Inventory had applied overhead costs of $57,500 and $20,000 , respectively. There was no Work-in-Process at the beginning or end of 2008. During the year, manufacturing overhead costs of $74,000 were actually incurred. The balance in the Applied Manufacturing Overhead was $77,500 at the end of 2008. If the under or overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts, how much will be allocated to the Finished Goods Inventory?

$903

$1,217

$1,283

$2,597

5. Operations costing systems are used when the products have:

used a standardized method that is repeatedly performed.

common characteristics and no individual characteristics.

individual characteristics and no common characteristics.

some common characteristics and some individual characteristics.

6. The ALG Manufacturing Company has gathered the following information for the month of September:

•There were 6,000 units in the beginning Work-in-Process Inventory (75% complete as to materials, 1/3 complete with respect to the conversion costs).

•60,000 units were started into production.

•50,000 units were completed and transferred to the next department.

•The ending Work-in-Process Inventory is complete as to materials, but only 3/8 complete with respect to conversion costs.

What are the equivalent units of production (EUP) for the conversion costs in the month of September, assuming ALG uses weighted-average process costing?

64,500

56,000

61,500

54,000

7. Department B had a beginning inventory of 400 units, 1/4 completed; an ending inventory of 300 units, 2/3 completed; and received 900 units from Department A during the period. What was the equivalent unit production of Department B, assuming weighted-average process costing was used?

800 units

900 units

1,100 units

1,200 units

8. RS Company manufactures and distributes two products, R and S. Currently, overhead costs are allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information:

What is the total overhead per unit allocated to Product S using activity-based costing (ABC)?

$2.60

$2.27

$2.00

$1.83

9. The Muskego National Bank is considering either a bankwide overhead rate or department overhead rates to allocate $250,000 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be based on direct labor hours for consumer loans and a dual rate based on direct labor hours and the number of loans processed for commercial loans. The following information was gathered for the upcoming period:

If Muskego uses a bankwide rate based on the number of loans processed, what would be the total costs for the commercial department?

$50,000

$150,000

$200,000

$250,000

10. In general, the first budget prepared is the:

production budget.

direct labor budget.

sales budget.

overhead budget.

11. The forecasting method in which individual forecasts of group members are submitted anonymously and evaluated by the group as a whole is called:

trend analysis.

econometric models.

the delphi technique.

regression analysis.

12. The amount of materials to be purchased during the budget period is equal to the budgeted:

total production needs plus the units in the beginning materials inventory minus the units in the ending materials inventory.

total production needs plus the units in the ending materials inventory minus the units in the beginning materials inventory.

units to be produced plus the units in the beginning materials inventory minus the units in the ending materials inventory.

units to be produced plus the units in the ending materials inventory minus the units in the beginning materials inventory.

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