Which of the following statements is not correct concerning multiple overhead rate systems? a. In departments that are relatively machine-intensive, their overhead costs should be applied to jobs based on direct labor-hours rather than on machine-hours. b. None of the given answers. C. A company may choose to create a separate overhead rate for each of its production departments. d. A multiple overhead rate system is usually more accurate than a system based on a single plantwide overhead rate. e. A multiple overhead rate system is more complex than a system based on a single plantwide overhead rate.

Q: When production departments differ significantly in their manufacturing processes, factory overhead…

A: The factory overhead costs are usually allocated between different products or departments using the…

Q: Hermann is not satisfied with the traditional method of allocating overhead because he believes that…

A: Traditionally the overhead cost is allocated on the bases of plantwide overhead rates. The activity…

Q: If Wilmington used a plantwide predetermined overhead rate based on direct labor-hours, how much…

A: Predetermined overhead rate is used for allocating overhead costs to job or product. Predetermined…

Q: Which statement is false? Using a single plantwide overhead allocation rate is the simplest method…

A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the estimated…

Q: Which of the following statements is true regarding by products?   a. Process costing is the only…

A: Solution: "Job order costing systems may have instances where by-products result from the production…

Q: The use of a plantwide manufacturing overhead rate implies that the activities that cause overhead…

A: The Answer

Q: Which of the following statements is false? a. Actual overhead costs always enter the…

A: Overhead is the amount of outlay incurred on the production process. The costs associated to the…

Q: umerous predetermined overhead rates while traditional uses only one.   The way they assign direct…

A: Correct answer is    Activity based costing may not assign all product costs to units if they are…

Q: A stapler manufacturer uses a single plantwide predetermined overhead allocation rate to allocate…

A: Step 1: Overhead cost is the cost spent by the business over and above the labor cost. It can be…

Q: If the activities causing overhead costs are different across different departments and products,…

A: Answer: True

Q: Why is it better to use separate overhead rates? * A. Some departments are labor-intensive, some…

A: Overhead rates are the rates used to measure the different costs relating to production of the…

Q: Which of the following statements about process costing system is incorrect?   a. In a process…

A: Process costing system - in the process costing system, each processing department will be having…

Q: (b) Why is the amount of underapplied (overapplied) manufacturing overhead different from…

A: Manufacturing overhead: It is the indirect cost incurred as a part of manufacturing the products.…

Q: Why is direct labor a poor base for allocating overhead in many companies?

A:

Q: Which one of the following is not correct about job-order costing systems ?and process costing…

A: job order costing systems - job order costing systems used when there are varieties of products to…

Q: ?Which of the following statements is not correct concerning multiple overhead rate systems None of…

A: Option  a is the answer.

Q: Under traditional costing systems, which calculate a single predetermined overhead rate using…

A: Under traditional costing systems, which calculate a single predetermined overhead rate using…

Q: Which of the following are true regarding activity-basedcosting? a. A primary goal of using ABC is a…

A: Activity-based costing: It is a method that helps in finding the activities performed by a company…

Q: why is direct labor a poor base for allocating overhead in many companies?

A: Process accounts:   Cost sheet is prepared to arrive at the cost price of the product after taking…

Q: Which of the following statements is not correct concerning multiple ?overhead rate systems A…

A: The multiple overhead rate system is the one where different departments have their own rates of…

Q: Activity-based costing a. may not assign all manufacturing overhead costs to products b. uses…

A: Under activity based costing, the overheads are applied to production on the basis of activity base…

Q: When applied by service companies, the use of the single and multiple department overhead rate…

A: The correct answer is “False.”

Q: Which of the following is an important feature when considering the use of a single plantwide…

A: Overheads are considered as fixed and common expenses that should be allocated to the products on…

Q: If the activities that generate overhead costs vary between departments and products, adopting a…

A: The Answer

Q: Which statement is false? a. Using a single plantwide overhead allocation rate is the simplest…

A:

Q: Which of the following statements is not correct concerning multiple overhead rate systems? a. In…

A: Solution- A multiple overhead rate system is more complex than a system based on a single plant wide…

Q: Departmental overhead rates applied based on a volume measure such as direct labour-hours or…

A: Overheads are the indirect costs of manufacturing the product like indirect material costs, indirect…

Q: Hoskins Co. uses a plant-wide factory overhead rate based on direct labor hours. Overhead costs…

A: Overhead Cost: Overhead cost is the expense incurred in the operations of a business. This expense…

Q: Departmental overhead rates may not correctly assign overhead costs due to: Multiple Choice

A: Introduction: In the old days, we cannot trace overhead costs so easily to assign products. For this…

Q: Under traditional costing systems, which calculate a single predetermined overhead rate using…

A: Cost refers to the monetary consideration which is incurred to produce, sell or to acquire items.…

Q: Using a plantwide factory overhead rate distorts product costs when: a.significant differences…

A: Plant-wide overhead rate: The traditional method allocates the overhead costs based on the factor…

Q: What do you think are some advantages for using the ABC method versus a single plant-wide rate or…

A: Costing: Management of manufacturing and administration costs by allocating expenses to different…

Q: Which of the following is false? Multiple Cholce Overhead costing accuracy is Improved by the use of…

A: A departmental rate of overhead is a charge that is based on the units of production made by various…

Q: Which of the following statements about a process costing system is incorrect? 1. In a process…

A: The process costing system is approach to accumulate direct material cost and allocate other…

Q: The printing industry has become highly automated. Job costing in the printing industry would likely…

A: Job Costing is a type of Cost Accounting which assigns manufacturing cost to specific product or…

Q: The __________ method uses different rates for each production department to allocate factory…

A: Activity-Based Costing: Activity-based is the method of costing which is used to assign indirect…

Q: Underapplied factory overhead would result if a. the plant were operating at less than normal…

A: Underapplied factory overhead  and overlapped  factory overhead  are based on factory  costs charged…

Q: Assigning manufacturing overhead to a specific job is complicated by all of the below except:…

A: Manufacturing Overhead:-It is an indirect cost incurred during the production process. It includes…

Q: Departmental overhead rates will correctly assign overhead costs in situations where a company has a…

A: Departmental overhead rates are used to assign overhead costs department wise. Here, overheads are…

Q: Which of the following statements is not correct concerning multiple overhead rate systems? a. None…

A: Overheads are the various indirect material, labour and other costs incurred during a manufacturing…

Q: Assume that a company makes only three products: Product A. Product B. and Product C. Currently, the…

A: Given, Number of units produced - Product A = 1,000 units Percent of total overhead allocated to…

Q: In an effort to simplify the multiple production department factory overhead rate method, the same…

A: Multiple production department factory overhead method identifies different departments in the…

Q: Both plantwide and departmental rates rely on unit-level drivers to assign overhead to products.…

A:

Q: Why would a manufactury company with multiple production department still prefrer to use a single…

A: Following are the reasons that a manufacturing company having multiple production departments use a…

Q: Which one of the following is not correct about job-order costing systems and process costing…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.