Which one of the following is not correct regarding the predetermined ?overhead rate .None of the given answers The predetermined overhead rate is used to assign manufacturing .b .overhead costs to cost objects such as products The predetermined overhead rate uses actual figures for the .c manufacturing overhead cost but estimated figures for the cost .allocation basis amount The predetermined overhead rate uses estimated figures for the .d manufacturing overhead cost and estimated figures for the cost .allocation basis amount The predetermined overhead rate is normally calculated at the .e .beginning of the period

Which one of the following is not correct regarding the predetermined ?overhead rate .None of the given answers The predetermined overhead rate is used to assign manufacturing .b .overhead costs to cost objects such as products The predetermined overhead rate uses actual figures for the .c manufacturing overhead cost but estimated figures for the cost .allocation basis amount The predetermined overhead rate uses estimated figures for the .d manufacturing overhead cost and estimated figures for the cost .allocation basis amount The predetermined overhead rate is normally calculated at the .e .beginning of the period

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6MC: Which is the correct formula for computing the overhead rate? A. estimated use of the cost driver...

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Which is the correct formula for computing the overhead rate? A. estimated use of the cost driver for production/estimated overhead for the activity B. estimated overhead for the product/estimated use of the cost driver for the activity C. estimated use of the cost driver for production/estimated overhead for the activity D. estimated overhead for the activity/estimated use of the cost driver for the activity
A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: A. How much overhead would be allocated to each unit under the traditional allocation method? B. How much overhead would be allocated to each unit under activity-based costing?
Which is not a task typically associated with ABC systems? A. calculating the overhead application rate for each cost pool B. applying a single cost rate C. identifying a cost driver D. more correctly allocating overhead 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?
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
Which of the following would not be classified as manufacturing overhead? A. indirect materials B. indirect labor C. direct labor D. property taxes on factory
Overhead costs are assigned to each product based on __________________. A. the proportion of that products use of the cost driver B. a predetermined overhead rate for a single cost driver C. price of the product D. machine hours per product
Under what conditions may the unit costs of materials, labor, and overhead be computed by using only one equivalent production figure?
Which of the following statements is true? a. Job-order costing is used only in manufacturing firms. b. Process costing is used only for services. c. Job-order costing is simpler to use than process costing because the recordkeeping requirements are less. d. The job cost sheet is subsidiary to the work-in-process account. e. All of these.
Carltons Kitchens three cost pools and overhead estimates are as follows: Compare the overhead allocation using: A. The traditional allocation method B. The activity-based costing method (Hint: the traditional method uses machine hours as the allocation base.)
Why are the overhead costs first accumulated in the manufacturing overhead account instead of in the work in process inventory account?
Classifying costs The following is a manufacturing cost report of Marching Ants Inc. a. List the errors in the preceding report. b. Prepare a corrected report.