A normal cost system applies overhead cost to jobs by multiplying:Multiple ChoiceAn actual overhead rate by the estimated amount of the allocation base used by the jobs.A predetermined overhead rate by the estimated amount of the allocation base used by the jobs.An actual overhead rate by the actual amount of the allocation base used by the jobs.A predetermined overhead rate by the actual amount of the allocation base used by the jobs.

Applied overhead = Predetermined overhead rate x Actual DLH

Answered: A normal cost system applies overhead…

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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Assign indirect labor cost is recorded with a Select one: O a. debit to Labor Cost. O b. debit to Work in Process Inventory. O C. debit to job cost sheets. d. debit to Manufacturing Overhead.
1.The overhead absorption rate used to allocate manufacturing overhead is calculated by: Select one: a.dividing the total estimated manufacturing overhead costs by the total estimated quantity of the allocation base b.dividing the total estimated manufacturing overhead by the total actual quantity of the cost driver c.dividing the total actual manufacturing overhead costs by the total estimated quantity of the cost driver d.dividing the total estimated quantity of the cost driver by the total estimated manufacturing overhead costs
In a job-order costing system, manufacturing overhead applied is recorded as a credit to: O a. None of the given answer is correct O b. Manufacturing Overhead. Work in Process inventory. O d. Finished Goods inventory. Fi е. Cost of Goods Sold.
When using a normal costing system direct material and direct labor are recorded at standard cost and overhead is treated as a period cost. direct material and direct labor are recorded at actual cost and overhead is treated as a period cost. direct material and direct labor are recorded at standard cost and overhead is applied to products using a predetermined overhead rate. direct material and direct labor are recorded at actual cost and overhead is applied to products using a predetermined overhead rate.
Which one of the following is considered a basic similarity between job order cost and process cost systems? • Tracking costs through a series of processes of departments. • Unit cost computations. O The flow of costs through the accounts. O The point at which costs are totaled.
Compute the predetermined overhead rate assuming that Tiger Furnishings uses direct labor costs to allocate overhead costs.
The process of assigning overhead costs to the jobs that are worked on is commonly called: O A. Overhead cost distribution B. Overhead cost apportionment C. Service department cost allocation D. Overhead application
The appropriate cost accounting system to use when inventory items are produced on an assembly line is a. perpetual method. b. job-order costing. c. weighted average. d. process costing.
In activity-based costing, the activity rate for an activity cost pool is computed by dividing the total overhead cost in the activity cost pool by: Multiple Choice the direct labor-hours required by the product. the machine-hours required by the product. the total activity for the activity cost pool. the total direct labor-hours for the activity cost pool.
There are basic systems of cost accounting. What are the two basic systems of cost accounting, and under what conditions may each be used advantageously? One of the basic systems is the job order cost system/job order costing.
Which of the following is the correct formula to compute the predetermined overhead rate? a. Estimated total manufacturing overhead costs divided by actual total units in the allocation base. b. Estimated total manufacturing overhead costs divided by estimated total units in the allocation base. C. Actual total manufacturing overhead costs divided by estimated total units in the allocation base. O d. Estimated total units in the allocation base divided by estimated total manufacturing overhead costs.

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