ACC 222 Chapter 5 Exam Questions and Answers Already Passed Latest Update 2025-2026
When materials are requisitioned for use in production in a job-order costing firm, the cost of
materials is added to the
a. raw materials account.
b. work in process account.
c. finished goods account.
d. accounts payable account.
e. cost of goods sold account. - Answers b
Applied overhead is
a. an important part of normal costing.
b. never used in normal costing.
c. an important part of actual costing.
d. the predetermined overhead rate multiplied by estimated activity level.
e. the predetermined overhead rate multiplied by estimated activity level for the month. -
Answers a
The predetermined overhead rate equals
a. actual overhead multiplied by actual activity level for a period.
b. estimated overhead divided by estimated activity level for a period.
c. actual overhead minus estimated overhead.
d. actual overhead divided by actual direct labor hours.
e. actual overhead divided by estimated overhead for a given period. - Answers b
In a normal costing system, the cost of a job includes
a. actual direct materials, actual direct labor, and estimated (applied) overhead.
b. estimated direct materials, estimated direct labor, and estimated overhead.
c. actual direct materials, actual direct labor, actual overhead, and actual selling cost.
d. actual direct materials, actual direct labor, and actual overhead.
, e. None of these choices are true. Job-order costing requires the use of actual, not normal,
costing. - Answers a
Which of the following statements is true?
a. Process costing is used only for services.
b. Job-order costing is ideal for homogeneous products that are produced in large volumes.
c. A work-in-process inventory account is not used when using process costing.
d. The job cost sheet is subsidiary to the work in process account.
e. All of these choices are true. - Answers d
The overhead variance is overapplied if
a. applied overhead is more than total manufacturing costs.
b. applied overhead is less than actual overhead.
c. applied overhead is greater than total fixed costs.
d. estimated overhead is less than applied overhead.
e. actual overhead is less than applied overhead. - Answers e
Which of the following is typically a job-order costing firm?
a. Paint manufacturer
b. Pharmaceutical manufacturer
c. Cleaning products manufacturer
d. Cement manufacturer
e. Large regional medical center - Answers e
Which of the following is typically a process-costing firm?
a. Paint manufacturer
b. Custom cabinetmaker
c. Large regional medical center
d. Law office
e. Custom framing shop - Answers a
When materials are requisitioned for use in production in a job-order costing firm, the cost of
materials is added to the
a. raw materials account.
b. work in process account.
c. finished goods account.
d. accounts payable account.
e. cost of goods sold account. - Answers b
Applied overhead is
a. an important part of normal costing.
b. never used in normal costing.
c. an important part of actual costing.
d. the predetermined overhead rate multiplied by estimated activity level.
e. the predetermined overhead rate multiplied by estimated activity level for the month. -
Answers a
The predetermined overhead rate equals
a. actual overhead multiplied by actual activity level for a period.
b. estimated overhead divided by estimated activity level for a period.
c. actual overhead minus estimated overhead.
d. actual overhead divided by actual direct labor hours.
e. actual overhead divided by estimated overhead for a given period. - Answers b
In a normal costing system, the cost of a job includes
a. actual direct materials, actual direct labor, and estimated (applied) overhead.
b. estimated direct materials, estimated direct labor, and estimated overhead.
c. actual direct materials, actual direct labor, actual overhead, and actual selling cost.
d. actual direct materials, actual direct labor, and actual overhead.
, e. None of these choices are true. Job-order costing requires the use of actual, not normal,
costing. - Answers a
Which of the following statements is true?
a. Process costing is used only for services.
b. Job-order costing is ideal for homogeneous products that are produced in large volumes.
c. A work-in-process inventory account is not used when using process costing.
d. The job cost sheet is subsidiary to the work in process account.
e. All of these choices are true. - Answers d
The overhead variance is overapplied if
a. applied overhead is more than total manufacturing costs.
b. applied overhead is less than actual overhead.
c. applied overhead is greater than total fixed costs.
d. estimated overhead is less than applied overhead.
e. actual overhead is less than applied overhead. - Answers e
Which of the following is typically a job-order costing firm?
a. Paint manufacturer
b. Pharmaceutical manufacturer
c. Cleaning products manufacturer
d. Cement manufacturer
e. Large regional medical center - Answers e
Which of the following is typically a process-costing firm?
a. Paint manufacturer
b. Custom cabinetmaker
c. Large regional medical center
d. Law office
e. Custom framing shop - Answers a
