BUSI_601_Exam_3

Which of the following is false about actual overhead while using normal costing? a. Actual overhead is recorded to the overhead control account during the period. b. If the actual overhead is greater than the applied overhead then the overhead is underapplied Overhead variance is the difference between actual overhead and applied C. overhead. d. It is divided into many smaller accounts such as indirect labor, supplies, etc. е. None of these. Select one: O c O d O a O e O b

Traditional overhead allocations result in which of the following situations?      a. Overhead costs are assigned as period costs to manufacturing operations.       b. High-volume products are assigned too much overhead, while low-volume products are assigned too little overhead.       c. Low-volume products are assigned too much overhead, while high-volume products are assigned too little overhead.       d. The resulting allocations cannot be used for financial reports.

mcqs Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold?     a The balance in the Work-in-Process account after allocation will be higher if the overapplied overhead is closed out by allocating it to all appropriate accounts.   b Cost of Goods Sold will be lower if the overapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold.   c Operating income will be higher if all of the overapplied overhead is closed out to Cost of Goods Sold.   d The balance in the Work-in-Process account after allocation will be the same under either method.

4. Overheads applied are calculated by: Select one: A. Cost driver divided by the OAR B. OAR times the estimated cost driver activity C. OAR times the actual cost driver activity D. Budgeted production overheads divided by the budgeted cost driver activity 5. Under-allocated manufacturing overhead costs are always the result of which of the following situations? Select one: A. Estimated overhead costs are greater than actual overhead costs. B. Actual overhead costs are less than applied overhead costs. C. Actual overhead costs are greater than estimated overhead costs. D. Applied overhead costs are less than actual overhead costs.   6. The centrepiece of a job-costing system is the: Select one: a. materials requisition form b. job-cost sheet c. labour time ticket d. budgeted overhead rate   7.Black Company uses predetermined overhead rates to apply manufacturing overheads to jobs. The predetermined overhead rates are based on machine hours in Department A and direct labour cost in…

Which of the following statements is false? a. Actual overhead costs always enter the Work-in-Process account. in b. The cost of a job includes direct materials, direct labor, and applied overhead. The use of normal costing means that overhead is applied to each job using a predetermined rate. C. d. Indirect labor is assigned as a part of overhead. e. None of these are correct. Select one: O b O e a

These are tue/false questions.   ____   21.   Differential revenue is the amount of increase or decrease in revenue expected from a particular course of action as compared with an alternative.   ____   22.   Equivalent units of production are the number of units that could have been manufactured from start to finish during an accounting period.   ____   23.   One of the differences in accounting for a process costing system compared to a job order system is that the amounts used to transfer goods from one department to the next comes from the cost of production report instead of job cost cards.   ____   24.   The primary accounting tool for controlling and reporting for cost centers is a budget performance report.   ____   25.   The dollars available from each unit of sales to cover fixed cost and profit is the unit variable cost.

Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? The balance in the Work-in-Process account after allocation will be higher if the overapplied overhead is closed out by allocating it to all appropriate accounts. a. b. None of given answer is correct. С. Cost of Goods Sold will be lower if the overapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. d. Operating income will be higher if all of the overapplied overhead is closed out to Cost of Goods Sold. e. The balance in the Work-in-Process account after allocation will be the same under either method. Clear my choice

The applied overhead is compared to the actual overhead, with any discrepancy going into one of the following three accounts: goods in process inventory, finished goods inventory, or cost of goods sold. Group startsTrue or False

Determining the basis for applying manufacturing overhead costs involves OA. primarily the accumulation of direct labor hours since virtually all overhead costs are driven by direct labor hours. B. primarily the maintaining of accurate records of production volume since virtually all overhead costs are driven by the number of units proc OC. the determination of a measure of activity that is a causal factor in the incurrence of overhead cost. OD. actual rather than budgeted levels of activity. Reset Selection

The EUP will be the same under FIFO method and weighted average methos if there is no beginning work in process inventory. In process costing the cost per unit in a department is found by spreading the period’s production costs over the production activity. Group of answer choices   Both statements are false. Only statement I is true. Only statement II is true. Both statements are true.

Solve this question with steps. The subject is Managerial Accounting.

Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? Select one: O a. None of given ANSWER is correct. O b. The balance in the Work-in-Process account after allocation will be higher if the overapplied overhead is closed out by allocating it to all appropriate accounts. O c. The balance in the Work-in-Process account after allocation will be the same under either method. O d. Operating income will be higher if all of the overapplied overhead is closed out to Cost of Goods Sold. O e. Cost of Goods Sold will be lower if the overapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold.

5  Why may departmental overhead rates NOT correctly assign overhead costs?   Select one: a. Because of the high correlation between direct labour hours and the incurrence of overhead costs. b. Because of the use of direct labour hours in allocating overhead costs to products rather than machine time or quantity of materials. c. Because of the over-reliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, lot size, or complexity of production. d. Because of the difficulties associated with identifying cost pools for the first stage of the allocation process.

Under traditional costing systems, which calculate a single predetermined overhead rate using volume-based drivers, the product margin of high-volume products tends to be: a. Overstated b. Understated C. Accurately calculated d. None of the answers given e. Cannot be judged due to insufficient information

I want answer's of both Questions with Explanation.

Under traditional costing systems, which calculate a single predetermined overhead rate using volume- based drivers, the product margin of high- volume products tends to be: a. Overstated b. Understated c. None of the given answers d. Accurately calculated do e. Cannot be judged due to insufficient information

1. I. The EUP will be the same under FIFO method and weighted average methos if there is no beginning work in process inventory.Il. In process costing the cost per unit in a department is found by spreading the period's production costs over the production activity.a. Both statements are false.b. Only statement I is true.c. Only statement Il is true.d. Both statements are true     2.  I. Under the weighted average method, the equivalent units used to compute the unit costs of ending inventories relate only to work done during the current period.Il. Discrete production losses are assumed to occur uniformly throughout the process. a. Both statements are true.b. Only statement Il is truec. Both statements are false.d. Only statement I is true.

10 Why may departmental overhead rates NOT correctly assign overhead costs? Select one: a. The difficulties associated with identifying cost pools for the first stage of the allocation process. b. The high correlation between direct labour hours and the incurrence of overhead costs. c. The use of direct labour hours in allocating overhead costs to products rather than machine time or quantity of materials. d. The over-reliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, lot size, or complexity of production.

Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? O a. None of given answer is correct. O b. Cost of Goods Sold will be lower if the overapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. O c. The balance in the Work-in-Process account after allocation will be the same under either method. O d. Operating income will be higher if all of the overapplied overhead is closed out to Cost of Goods Sold. The balance in the Work-in-Process account after allocation will be higher if the overapplied overhead is closed out by allocating it to all appropriate accounts. O e.

PLEASE EXPLAIN YOUR ANSWER AND DO NOT GIVE PLAGRIZED ANSSWER

Multiple predetermined overhead rates: a. improves job-order costing's accuracy accounting for costs. b. are based on actual total manufacturing overhead costs С. are calculated at the ending of the accounting period once the actual amount of manufacturing overhead is known. d. All the given answers are NOT correct. calculated for each department by dividing total estimated manufacturing overhead cost by total actual units of the allocation base.

:All the following statements about multiple predetermined overhead rates are correct, EXCEP a O They are based on estimated total manufacturing overhead costs They are calculated at the beginning of the accounting period once the actual amount of .b O .manufacturing overhead is known They make job-order costing less accurate accounting for costs They are calculated for each department by dividing total estimated manufacturing overhead .d C .c O .cost by total estimated units of the allocation base .e O .none of the given answers is correct During June at XYZ company, OMR 85,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The direct materials totaled OMR 7,000. The journal entry to record the requisition from the storeroom would :include a None of the given answer is correct .a O debit to Manufacturing Overhead of OMR 78,000 .b O debit to Raw Materials of OMR 85,000 .c O debit to Work in…

Which of the following statements is incorrect? O A. If MOH is overallocated to a job that has been sold, and the company calculates sales price by marking up job costs, the job will likely be underpriced. O B. The formula to arrive at the POHR is total budgeted manufacturing overhead divided by total estimated allocation base. O C. To calculate the increase to WIP for allocated MOH costs, the POHR is multiplied by the actual amount of the allocation based used by the cost object. D. "Number of units" is typically not an appropriate allocation base for MOH because the company's products do not consume equal overhead resources. If the over/underallocated MOH is fairly large and the majority of the units have not been sold, the balance in MOH should be prorated between WIP, FG, and COGS. O E.

Multiple predetermined overhead rates: a. improves job-order costing's accuracy accounting for costs. O b. are calculated at the ending of the accounting period once the actual amount of manufacturing overhead is known. О с. All the given answers are NOT correct. O d. calculated for each department by dividing total estimated manufacturing overhead cost by total actual units of the allocation base. e. are based on actual total manufacturing overhead costs

Which of the following is correct with respect to closing out underapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? Select one: O a. The balance in the Work-in-Process account after allocation will be higher if the underapplied overhead is closed out by allocating it to all appropriate accounts. O b. Cost of Goods Sold will be higher if the underapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. Oc. None of given ANSWER is correct. O d. Operating income will be higher if all of the underapplied overhead is closed out to Cost of Goods Sold. O e. The balance in the Work-in-Process account after allocation will be the same under either method.