Category > AccountingPosted 20 Dec 2017My Price10.00
A job-order cost system uses a predetermined factory overhead rate
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QUESTION 1 A job-order cost system uses a predetermined factory overhead rate based on expected volume and expected fixed cost. At the end of the year, underapplied overhead might be explained by which of the following situations? A. Actual Volume- Less than expected Actual Fixed Costs- Less than expected B. Actual Volume- Less than expected Actual Fixed Costs- Greater than expected C. Actual Volume- Greater than expected Actual Fixed Costs- Greater than expected D. Actual Volume- Greater than expected Actual Fixed Costs- Less than expected QUESTION 2 The Childers Company manufactures widgets. During the fiscal year just ended, the company incurred prime costs of $1.5 million and conversion costs of $1.8 million. Overhead is applied at the rate of 200% of direct labor cost. How much of the above costs represent direct materials cost? A. $600,000 B. $900,000 C. $1,500,000D. $300,000 QUESTION 3 In a labor-intensive industry in which more overhead (service, support, more expensive equipment, etc.) is incurred by the more highly skilled and paid employees, what denominator measure is most likely to be appropriate for applying overhead? A. Machine hours. B. Direct labor cost. C. Direct labor hours. D. Sales value of product produced. QUESTION 4 Many companies recognize three major categories of costs of manufacturing a product. These are direct materials, direct labor, and overhead. Which of the following is an overhead cost in the production of an automobile? A. The cost of the tires on each automobile. B. The cost of the laborers who place tires on each automobile. C. The delivery costs for the tires on each automobile. D. The cost of small tools used in mounting tires on each automobile.
