Which of the following statements are true? I. In a job-order costing system, indirect labor is assigned to a job using information from the employee time ticket. II. If the allocation base in the predetermined overhead rate does not drive overhead costs, it will nevertheless provide reasonably accurate unit product costs because of the averaging process. III. In a job-order costing system, costs are traced to individual units of product. The sum total of such traced costs is called the unit product cost. Multiple Choice Only statement I is true. Statements I and II are true. Statements II and III are true. None of the statements are true.

Which of the following statements are true? I. In a job-order costing system, indirect labor is assigned to a job using information from the employee time ticket. II. If the allocation base in the predetermined overhead rate does not drive overhead costs, it will nevertheless provide reasonably accurate unit product costs because of the averaging process. III. In a job-order costing system, costs are traced to individual units of product. The sum total of such traced costs is called the unit product cost. Multiple Choice Only statement I is true. Statements I and II are true. Statements II and III are true. None of the statements are true.

Name: Which of the following statements are true?I. In a job-order costing
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Description: Which of the following statements are true?I. In a job-order costing system, indirect labor is assigned to a job using information from the employee time ticket.II. If the allocation base in the predetermined overhead rate does not drive overhead co

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 1MCQ: Which of the following statements is true? a. Job-order costing is used only in manufacturing firms....

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In a normal costing system, the cost of a job includes a. actual direct materials, actual direct labor, and estimated (applied) overhead. b. estimated direct materials, estimated direct labor, and estimated overhead. c. actual direct materials, actual direct labor, actual overhead, and actual selling cost. d. actual direct materials, actual direct labor, and actual overhead. e. None of these. Job-order costing requires the use of actual, not normal, costing.
During production, to what are the costs in job order costing applied? A. manufacturing overhead B. cost of goods sold C. each individual product D. each individual department
Which of the following product situations is better suited to job order costing than to process costing? A. Each product batch is exactly the same as the prior batch. B. The costs are easily traced to a specific product. C. Costs are accumulated by department. D. The value of work in process is based on assigning standard costs.
A company has traditionally allocated its overhead based on machine hours but collected this information to change to activity based costing: A. How much overhead would be assigned to each unit under the traditional allocation method? B. How much overhead would be assigned to each unit under activity-based costing?
If a job order cost system tracks the direct materials and direct labor, why doesn't It track the actual overhead used for a specific job?
Assigning indirect costs to specific jobs is completed by which of the following? applying the costs to manufacturing overhead using the predetermined overhead rate using the manufacturing costs incurred applying the indirect labor to the work in process inventory
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