Full file at http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-6th-Edition-Brewer,-Garrison,-Noreen
Test Bank for Introduction to Managerial
Accounting 6th Edition Brewer, Garrison, Noreen
Chapter 02
True / False Questions
1. 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
,Fulla 1 filea 1 ata 1 http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-6th-Edition-Brewer,-Garrison,-
Noreen
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
,Fulla 1 filea 1 ata 1 http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-6th-Edition-Brewer,-Garrison,-
Noreen
13 Ifa1manufacturinga1 overheada1applieda1exceedsa1 thea1actuala1manufacturing
.
overheada1costsa1ofa1thea1period,a1thena1manufacturinga1
overheada1isa1overapplied.
True False
Multiplea1Choicea1Questions
14 Ina1computinga1itsa1predetermineda1overheada1 rate,a1Marplea1Company
.
inadvertentlya1lefta1itsa1indirecta1labora1costsa1outa1ofa1thea1com
putation.a1Thisa1oversighta1willa1cause:
A. Manufacturinga1Overheada1toa1
bea1overapplied.
B. thea1Costa1ofa1Goodsa1Manufactureda1t
oa1bea1understated.
C. thea1debitsa1toa1thea1Manufacturinga1Overheada1accounta
1toa1bea1understated.
D. thea1endinga1balancea1ina1Worka1ina1Processa
1toa1bea1overstated.
15 Whicha1ofa1thea1followinga1isa1thea1correcta1formulaa1toa1computea1the
. predetermineda 1 overheada 1 rate?
A. Estimateda1totala1unitsa1ina1thea1allocationa1basea1divideda1bya1estimat
eda1totala1manufacturinga1overheada1costs.
B. Estimateda1totala1manufacturinga1overheada1costsa1divideda1bya1esti
mateda1totala1unitsa1ina1thea1allocationa1base.
C. Actuala1totala1manufacturinga1overheada1costsa1divideda1bya1estimate
da1totala1unitsa1ina1thea1allocationa1base.
D. Estimateda1totala1manufacturinga1overheada1costsa1divideda1bya1actua
la1totala1unitsa1ina1thea1allocationa1base.
, Fulla 1 filea 1 ata 1 http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-6th-Edition-Brewer,-Garrison,-
Noreen
16 Whicha1ofa1thea1followinga1woulda1probablya1bea1thea1leasta1appropriatea1allocat
ion
.
basea1fora1allocatinga1overheada1ina1aa1highlya1automateda1ma
nufacturera1ofa1specialtya1valves?
A. machine-
a1hours
B. powera1consu
mption
C. directa1labor
-a1hours
D. machine
a1setups
17 Whata1documenta1isa1useda1toa1determinea1thea1actuala1amounta1ofa1directa1lab
ora1to
. recorda1ona1aa1joba1costa1sheet?
A. time
ticket
B. payrolla
1register
C. productiona
1order
D. wagesa1payabl
ea1account
Test Bank for Introduction to Managerial
Accounting 6th Edition Brewer, Garrison, Noreen
Chapter 02
True / False Questions
1. 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
,Fulla 1 filea 1 ata 1 http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-6th-Edition-Brewer,-Garrison,-
Noreen
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
,Fulla 1 filea 1 ata 1 http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-6th-Edition-Brewer,-Garrison,-
Noreen
13 Ifa1manufacturinga1 overheada1applieda1exceedsa1 thea1actuala1manufacturing
.
overheada1costsa1ofa1thea1period,a1thena1manufacturinga1
overheada1isa1overapplied.
True False
Multiplea1Choicea1Questions
14 Ina1computinga1itsa1predetermineda1overheada1 rate,a1Marplea1Company
.
inadvertentlya1lefta1itsa1indirecta1labora1costsa1outa1ofa1thea1com
putation.a1Thisa1oversighta1willa1cause:
A. Manufacturinga1Overheada1toa1
bea1overapplied.
B. thea1Costa1ofa1Goodsa1Manufactureda1t
oa1bea1understated.
C. thea1debitsa1toa1thea1Manufacturinga1Overheada1accounta
1toa1bea1understated.
D. thea1endinga1balancea1ina1Worka1ina1Processa
1toa1bea1overstated.
15 Whicha1ofa1thea1followinga1isa1thea1correcta1formulaa1toa1computea1the
. predetermineda 1 overheada 1 rate?
A. Estimateda1totala1unitsa1ina1thea1allocationa1basea1divideda1bya1estimat
eda1totala1manufacturinga1overheada1costs.
B. Estimateda1totala1manufacturinga1overheada1costsa1divideda1bya1esti
mateda1totala1unitsa1ina1thea1allocationa1base.
C. Actuala1totala1manufacturinga1overheada1costsa1divideda1bya1estimate
da1totala1unitsa1ina1thea1allocationa1base.
D. Estimateda1totala1manufacturinga1overheada1costsa1divideda1bya1actua
la1totala1unitsa1ina1thea1allocationa1base.
, Fulla 1 filea 1 ata 1 http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-6th-Edition-Brewer,-Garrison,-
Noreen
16 Whicha1ofa1thea1followinga1woulda1probablya1bea1thea1leasta1appropriatea1allocat
ion
.
basea1fora1allocatinga1overheada1ina1aa1highlya1automateda1ma
nufacturera1ofa1specialtya1valves?
A. machine-
a1hours
B. powera1consu
mption
C. directa1labor
-a1hours
D. machine
a1setups
17 Whata1documenta1isa1useda1toa1determinea1thea1actuala1amounta1ofa1directa1lab
ora1to
. recorda1ona1aa1joba1costa1sheet?
A. time
ticket
B. payrolla
1register
C. productiona
1order
D. wagesa1payabl
ea1account
