Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match the items below to the appropriate term. Clear All Insurance expired on factory equipment Utilities incurred in the office Advertising expense Selling and administrative expense Factory overhead Direct labor Direct materials

Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match the items below to the appropriate term. Clear All Insurance expired on factory equipment Utilities incurred in the office Advertising expense Selling and administrative expense Factory overhead Direct labor Direct materials

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 9E: Suppose that clerical erroreither Thaynes or the suppliersis the common root cause of the...

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Similar questions

If the factory overhead account has a negative balance, factory overhead is said to be: a.Underapplied B.Over-applied C.Undcrabsorbed D. In error
" When the predetermined overhead rate is based on the level of activity at capacity, an item called the Cost of Unused Capacity might appear to be treated as a period expense on income statements prepared for internal management use." Please explain the statement (True/False) thoroughly with examples. What does "Cost of Unused Capacity" mean?
Match each definition with its related term by selecting the appropriate term in the dropdown provided. Dropdown options: An accounting system that records all actual amounts after the expense has occurred. An accounting system that records all costs based on estimated amounts. An accounting system that records all direct materials and direct labor at actual amounts, while assigning manufacturing overhead costs using predetermined overhead rates. Difference between actual and planned results. Standards that are tight but are used to motivate individuals to work hard and achieve results. Standards that can be achieved only under perfect conditions. The difference between actual cost and the flexible budget for materials. The difference between actual labor hours and standard labor hours multiplied by the actual labor rate. The difference between actual labor hours and standard labor hours multiplied by the standard labor rate. The difference between actual price and standard price…
Prepare the abnormal loss/gain statement, clearly showing the amount transferred to the costing profit and loss account.
Show the solution in good accounting form. Thank you! Using average costing, compute for the ending balance of work in process that will be included in the statement of financial position if the losses were discovered at the end of the process and were considered abnormal.
Indirect operating expenses are normally a. precise expenses determined by managers. b. approximations. c. overlooked. d. assigned by arbitrary methods. (I got d. Incorrect)
If the actual amount of the manufacturing overhead allocation base is greater than the estimated amount of the allocation base used to calculate the predetermined rate, then manufacturing overhead must have been under-allocated. Select one: True False
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.
Overhead costs are underapplied if the amount applied to Work in Process is: of the given answer is correct b. greater than estimated overhead. equal to estimated overhead. d. greater than actual overhead incurred. e equal to actual overhead incurred.
Which of the following statements is incorrect? Multiple Choice External financial reporting requirements call for allocating manufacturing overhead to work-in-process inventory. Variable overhead is allocated on the basis of production expected to be achieved over a number of periods after taking planned maintenance into consideration (normal capacity). Over/underabsorbed overhead can be reported on the income statement or allocated among inventory accounts on the balance sheet. Proration of over/underabsorbed overhead is chosen when it will alter an investment decision. Firms involved in cost-plus projects will choose to recost each job because the firm’s revenue is tied to its costs.
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.
Underallocated overhead occurs when: A) allocated overhead costs are less than actual overhead costs. B) actual overhead costs are less than allocated overhead costs. C) estimated overhead costs are greater than budgeted overhead costs. D) estimated overhead costs are greater than actual overhead costs.