6. The Work in Process Inventory account of a manufacturing company that uses an overhead rate based ondirect labor cost has a $3,200 debit balance after all posting is completed. The cost sheet of the one job still inprocess shows direct material cost of $1,400 and direct labor cost of $800. Therefore, the amount of theapplied overhead is:7. The Work in Process Inventory account of a manufacturing company that uses an overhead rate based ondirect labor cost has a $4,400 debit balance after all posting is completed. The cost sheet of the one jobstill in process shows direct material cost of $2,000 and direct labor cost of $800. Therefore, thecompany's overhead application rate is:8.When factory payroll costs for labor are allocated in a job cost accounting system:A. Factory Payroll is debited and Work in Process Inventory is credited.B. Work in Process Inventory and Factory Overhead are debited and Factory Payroll is credited.C. Cost of Goods Manufactured is debited and Direct Labor is credited.D. Direct Labor and Indirect Labor are debited and Factory Payroll is credited.E. Work in Process Inventory is debited and Factory Payroll is credited.9. Oxford Company uses a job order costing system. In the last month, the system accumulated labor timetickets total $24,600 for direct labor and $4,300 for indirect labor. These costs were accumulated in FactoryPayroll as they were paid. Which entry should Oxford make to assign the Factory Payroll?A. Debit Payroll Expense $28,900; credit Cash $28,900.B. Debit Payroll Expense $24,600; debit Factory Overhead $4,300; credit Factory Payroll $28,900.C. Debit Work in Process Inventory $24,600; debit Factory Overhead $4,300; credit Factory Payroll $28,900.D. Debit Work in Process Inventory $24,600; debit Factory Overhead $4,300; credit Wages Payable $28,900.E. Debit Work in Process Inventory $28,900; credit Factory Payroll $28,900.10. Labor costs in production can be:A. Direct or indirect.B. Indirect or sunk.C. Direct or payroll.D. Indirect or payroll.E. Direct or sunk.11. An example of direct labor cost is:A. Supervisor salaryB. Maintenance worker wagesC. Janitor wagesD. Product assembler wagesE. Accountant salary

Applied overhead is the fixed percentage of overhead that has been incurred by the company.

6. The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $3,200 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $1,400 and direct labor cost of $800. Therefore, the amount of the applied overhead is:

6. The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $3,200 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $1,400 and direct labor cost of $800. Therefore, the amount of the applied overhead is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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