proffessor2013

1.

A single plant-wide overhead rate generally provides more accurate product costs than multiple departmental overhead rates.    True    False

2.

The use of a predetermined overhead rate in a job-order cost system makes it possible to compute the total cost of a job before production is begun.    True    False

3.

Predetermined overhead rates are based on estimated cost and activity data.    True    False

4.

Use of a single, plant-wide overhead rate is generally appropriate only for very large manufacturing companies.    True    False

5.

Even though a job is not completed at year end, manufacturing overhead cost may be applied to that job when a predetermined overhead rate is used.    True    False

6.

When the predetermined overhead rate is based on direct labor-hours, the amount of overhead applied to a job is proportional to the estimated amount of direct labor-hours for the job.    True    False

7.

If direct labor-hours is used as the allocation base in a job-order costing system, but overhead costs are not caused by direct-labor hours, then jobs with high direct labor requirements will tend to be under-costed relative to jobs with low direct labor requirements.    True    False

8.

The cost of a completed job in a job-order costing system typically consists of the actual direct materials cost of the job, the actual direct labor cost of the job, and the manufacturing overhead cost applied to the job.    True    False

9.

The cost categories that appear on a job cost sheet include selling expense, manufacturing expense, and administrative expense.    True    False

10.

The salary of the company's president should be charged to the Manufacturing Overhead Incurred account.    True    False

11.

If a company closes any under-applied or over-applied overhead to the Cost of Goods Sold account, then Cost of Goods Sold will be increased if manufacturing overhead is over-applied for the period.    True    False

12.

Manufacturing overhead is over-applied if actual manufacturing overhead costs for a period are greater than the amount of manufacturing overhead cost that was charged to Work in Process.    True    False

13.

Two of the reasons why manufacturing overhead may be under-applied are: (1) the estimated total manufacturing overhead cost may have been too high; and (2) the estimated total amount of the allocation base may have been too low.    True    False

14.

The most common accounting treatment of under-applied manufacturing overhead is to transfer it to the Manufacturing Overhead Incurred account.    True    False

15.

If the actual manufacturing overhead cost for a period exceeds the manufacturing overhead cost applied, then manufacturing overhead would be considered to be under-applied.    True    False

16.

The cost of goods sold in a single product company is equal to the number of units sold multiplied by their unit product cost, plus any over-applied overhead or less any under-applied overhead.    True    False

17.

The cost of goods manufactured for a period includes only the costs of units that are completed during the period.    True    False

18.

Ending finished goods inventory in a single product company equals the number of units in ending inventory less the number of units in beginning inventory, multiplied by their unit product cost.    True    False

19.

The cost of goods manufactured equals ending work in process inventory, plus the total manufacturing cost charged to jobs, less beginning work in process inventory.    True    False

20.

Cost of goods sold equals beginning finished goods inventory, plus cost of goods manufactured, less ending finished goods inventory.    True    False

21.

If a company uses predetermined overhead rates, actual manufacturing overhead costs of a period will be recorded in the Manufacturing Overhead Incurred account, but they will not be recorded on the job cost sheets for the period.    True    False

22.

The labor time ticket contains a detailed summary of the direct and the indirect labor hours of an employee.    True    False

23.

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?   

24.

Departmental overhead rates are generally preferred to plant-wide overhead rates when:   

25.

In a job-order costing system, the amount of overhead cost that has been applied to a job that remains incomplete at the end of a period: