Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match each of the following phrases with the term that it most closely describes. Clear All A system that uses a different overhead rate for each activity A subsidiary ledger that maintains a separate account for each type of material Applied overhead is more than actual overhead incurred Typically used by companies that make custom products Overapplied overhead Materials ledger Underapplied overhead Job order cost system Finished goods ledger Process cost system Activity-based costing

Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match each of the following phrases with the term that it most closely describes. Clear All A system that uses a different overhead rate for each activity A subsidiary ledger that maintains a separate account for each type of material Applied overhead is more than actual overhead incurred Typically used by companies that make custom products Overapplied overhead Materials ledger Underapplied overhead Job order cost system Finished goods ledger Process cost system Activity-based costing

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 13MC: Activity-based costing systems: A. use a single predetermined overhead rate based on machine hours...

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Activity-based costing systems: A. use a single predetermined overhead rate based on machine hours instead of on direct labor B. frequently increase the overhead allocation to at least one product while decreasing the overhead allocation to at least one other product C. limit the number of cost pools D. always result in an increase of at least one products selling price
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…
You are Accountant of the company and you are being asked to submit a report to the Managementregarding following matters:1) Briefly discuss the different cost classifications which are relevant for a business like RaajjeFresh.2) Using the information in Annex 1, identify the Fixed Costs and Variable Costs, showing them ina table.3) Using the table prepared in (2) above, prepare a break-even chart for the given period (withclear labels).4) Using the information in Annex 2, prepare an overhead summary, showing clearly the totaloverheads for each department. Prepare the following calculations using the total overhead foreach department:i. Calculate the Overhead Absorption Rate (OAR) based on Labour hours.ii. Calculate Overhead Absorption Rate (OAR) based on number of units (for 3000 units)iii. Calculate the Total Cost per unit from the available information (use OAR based on costper unit)iv. Which of the above absorption bases is more suitable for Raajje Fresh?
Refer to the illustration of overhead application in the Small World Advertising example. Suppose the firm used a single cost driver, total staff compensation, to apply overhead costs to each advertising engagement.Required:1. Compute the total budgeted staff compensation: both partner and associate staff compensation.2. Compute Small World’s overhead rate on the basis of this single cost driver.3. Recalculate the applied overhead for the EyeStyle Global engagement.4. Compare the applied overhead using the single cost driver with the applied overhead computed using the two cost drivers used in the text illustration.
All the following statements about multiple predetermined overhead rates are correct , EXCEPT : a. They are calculated for each department by dividing total estimated manufacturing overhead cost by total actual units of the allocation base . b. They are calculated at the beginning of the accounting period once the actual amount of manufacturing overhead is known . c. They improve job - order costing's accuracy accounting for costs . d .All the given answers are correct . e . They are based on estimated total manufacturing overhead costs
Hello, Have a question. Which of the following are the advantages of the ABC approach relative to using a single predetermined overhead application rate based on direct labor hours? Select all that apply. A. ABC does not help in decision making. B. ABC systems produce more accurate financial information. C. ABC approach is likely to provide better information to manufacturing managers. D. ABC helps in decision making. E. ABC systems produce more accurate product costing information. Thanks...
Select the correct answer ( PLEASE ANSWER ALL QUESTIONS) IT IS MULTIPLE CHOICE, I CANT SEND ONE QUESTION AT A TIME. THANKS The traditional cost drivers used in computing overhead absorption rates are: A)Direct labor hours, machine hours, direct labor costs B)Direct labor hours, machine costs, direct labor cost C)Floor space, rent & rates, machinery value D)Direct labor costs, machine hours, factory overhead. Overheads applied are calculated by: A)Cost driver divided by the OAR B)Budgeted production overheads divided by the budgeted cost driver activity C)OAR times the actual cost driver activity D)OAR times the estimated cost driver activity. Under allocated manufacturing overhead costs are always the result of which of the following situations. A)Estimated overhead costs are greater than actual overhead costs B)Applied overhead costs are less than actual overhead costs C)Actual overhead costs are greater than estimated overhead costs D)Actual overhead costs are less than…
Which statement is false? a. Using a single plantwide overhead allocation rate is the simplest method of allocating overhead costs. b. An allocation system that uses departmental overhead allocation rates is more refined than one that uses a plantwide overhead allocation rate. c. Allocation focuses on indirect costs. d. The predetermined overhead allocation rate is based on actual costs.
Match each of the following phrases with the term that it most closely describes. Typically used by companies whose products are indistinguishable from each other Stock ledger Applied overhead is less than actual overhead incurred Overapplied overhead Process cost system Underapplied overhead Activity-based costing Materials ledger Job order cost system Finished goods ledger
Which of the following statements is true? a) Using either direct labor hours or direct labor costs to calculate a plantwide overhead rate will generally ensure that direct labor costs are accurately traced to jobs. b) An assumption that the only cost driver of an organization is direct labor hours is generally not accurate. c) A manufacturing overhead rate is only determined and used for fixed manufacturing overhead. d) Manufacturing overhead is directly traced to jobs using an overhead application rate(s).
Which statement is false? Using a single plantwide overhead allocation rate is the simplest method of allocating overhead costs. An allocation system that uses departmental overhead allocation rates is more refined than one that uses a plantwide overhead allocation rate. Allocation focuses on indirect costs. The predetermined overhead allocation rate is based on actual costs.
Match each of the terms/phrases numbered 1 through 5 with the best definition a through e. 1. Cost accounting system 2. Target cost 3. Job 4. Process operation 5. Job order production a. Production activities for a custom product. b. Production activities for a special order. c. A system that records manufacturing costs. d. The expected selling price of a job minus its desired profit. e. Mass production in a continuous flow of steps.