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
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
4.
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
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 Department B. At the beginning of the year, the company made the following estimates:
| Department A | Department B | |
| Manufacturing Overhead | $25,000 | $30,000 |
| Direct Labour Hour | 16,000 | 12,000 |
| Machine Hours | 5,000 | 10,000 |
| Direct Labour Cost | $20,000 | $15,000 |
What predetermined overhead rates would be used in Departments A and B respectively?
Select one:
a. $5.00 and 200%
b. $5.00 and $2.00
c. 110% and $15
d. $8.00 and 50%
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