Test Bank For Introduction to Managerial Accounting 6th Edition-Brewer, Garrison, Noreen Complete All Chapters Newest Version 2024

Test Bank For Introduction to Managerial Accounting 6th Edition-Brewer, Garrison, Noreen Complete All Chapters Newest Version 2024. The use of predetermined overhead rates in a job-order cost system makes it possible to estimate the total cost of a given job as soon as production is completed. True False 2. A job cost sheet is used to accumulate costs charged to a job. True False 3. The following journal entry would be made to apply overhead cost to jobs in a job-order costing system: True False 4. Under a job-order cost system the Work in Process account is debited with the cost of materials purchased. True False 5. The process of assigning overhead cost to jobs is known as overhead application. True False 6. The cost of a completed job in a job-order costing system typically consists of the actual direct materials cost of the job, the actual direct labor cost of the job, and the actual manufacturing overhead cost of the job. True False 7. A debit balance in the Manufacturing Overhead account at the end of the year means that manufacturing overhead is overapplied. True False 8. Period costs are expensed as incurred, rather than going into the Work in Process account. True False 9. Advertising costs should be charged to the Manufacturing Overhead account. True False 10 . When a job has been completed, the goods are transferred from the production department to the finished goods warehouse and the journal entry would include a credit to Work in Process. True False 11 . Underapplied or overapplied manufacturing overhead represents the difference between actual overhead costs and applied overhead costs. True False 12 . Top management salaries should not go into the Manufacturing Overhead account. True False 13 . If manufacturing overhead applied exceeds the actual manufacturing overhead costs of the period, then manufacturing overhead is overapplied. True False Multiple Choice Questions 14 . In computing its predetermined overhead rate, Marple Company inadvertently left its indirect labor costs out of the computation. This oversight will cause: A. Manufacturing Overhead to be overapplied. B. the Cost of Goods Manufactured to be understated. C. the debits to the Manufacturing Overhead account to be understated. D. the ending balance in Work in Process to be overstated. 15 . Which of the following is the correct formula to compute the predetermined overhead rate? A. Estimated total units in the allocation base divided by estimated total manufacturing overhead costs. B. Estimated total manufacturing overhead costs divided by estimated total units in the allocation base. C. Actual total manufacturing overhead costs divided by estimated total units in the allocation base. D. Estimated total manufacturing overhead costs divided by actual total units in the allocation base. Full file at 16 . Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves? A. machinehours B. power consumption C. direct laborhours D. machine setups 17 . What document is used to determine the actual amount of direct labor to record on a job cost sheet? A. time ticket B. payroll register C. production order D. wages payable account Full file at 18 . A proper journal entry to close overapplied manufacturing overhead to Cost of Goods Sold would be: A. Option A B. Option B C. Option C D. Option D 19 . In a job-order costing system, direct labor cost is ordinarily debited to: A. Manufacturing Overhead. B. Cost of Goods Sold. C. Finished Goods. D. Work in Process. Full file at 20 . In a job-order costing system, the use of direct materials that have been previously purchased is recorded as a debit to: A. Raw Materials inventory. B. Work in Process inventory. C. Finished Goods inventory. D. Manufacturing Overhead. 21 . The journal entry to record the incurrence of indirect labor costs is: A. Option A B. Option B C. Option C D. Option D Full file at 22 . Which of the following accounts is debited when direct labor is recorded? A. Work in process B. Salaries and wages expense C. Salaries and wages payable D. Manufacturing overhead 23 . The balance in the Work in Process account equals: A. the balance in the Finished Goods inventory account. B. the balance in the Cost of Goods Sold account. C. the balances on the job cost sheets of uncompleted jobs. D. the balance in the Manufacturing Overhead account. 24 . In a job-order costing system, indirect materials that have been previously purchased and that are used in production are recorded as a debit to: A. Work in Process inventory. B. Manufacturing Overhead. C. Finished Goods inventory. D. Raw Materials inventory. Full file at 25 . Martinez Aerospace Company uses a job-order costing system. The direct materials for Job #045391 were purchased in July and put into production in August. The job was not completed by the end of August. At the end of August, in what account would the direct material cost assigned to Job #045391 be located? A. raw materials inventory B. work in process inventory C. finished goods inventory D. cost of goods manufactured 26 . Which terms will make the following statement true? When manufacturing overhead is overapplied, the Manufacturing Overhead account has a __________ balance and applied manufacturing overhead is greater than __________ manufacturing overhead. A. debit, actual B. credit, actual C. debit, estimated D. credit, estimated Full file at 27 . Overapplied manufacturing overhead occurs when: A. applied overhead exceeds actual overhead. B. applied overhead exceeds estimated overhead. C. actual overhead exceeds estimated overhead. D. budgeted overhead exceeds actual overhead. 28 . Daguio Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $224,580. At the end of the year, actual direct labor-hours for the year were 18,200 hours, manufacturing overhead for the year was underapplied by $12,100, and the actual manufacturing overhead was $219,580. The predetermined overhead rate for the year must have been closest to: A. $11.40 per machinehour B. $12.34 per machinehour C. $12.06 per machinehour D. $10.53 per machinehour Full file at 29 . Wert Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead was $1,200,000 and its estimated level of activity was 50,000 direct labor-hours. The company's direct labor wage rate is $12 per hour. Actual manufacturing overhead amounted to $1,240,000, with actual direct labor cost of $650,000. For the year, manufacturing overhead was: A. overapplied by $60,000 B. underapplied by $60,000 C. overapplied by $40,000 D. underapplied by $44,000 30 . Crinks Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 11,200 hours and the total estimated manufacturing overhead was $259,840. At the end of the year, actual direct labor-hours for the year were 10,800 hours and the actual manufacturing overhead for the year was $254,840. Overhead at the end of the year was: A. $4,280 overapplied B. $9,280 overapplied C. $9,280 underapplied D. $4,280 underapplied Full file at 31 . At the beginning of the year, manufacturing overhead for the year was estimated to be $267,500. At the end of the year, actual direct laborhours for the year were 22,100 hours, the actual manufacturing overhead for the year was $262,500, and manufacturing overhead for the year was overapplied by $13,750. If the predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been: A. 22,100 direct laborhours B. 19,900 direct laborhours C. 21,000 direct laborhours D. 21,400 direct laborhours 32 . Brace Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,600 hours. At the end of the year, actual direct labor-hours for the year were 20,400 hours, the actual manufacturing overhead for the year was $506,920, and manufacturing overhead for the year was underapplied by $23,440. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been: