If the actual amount of manufacturing overhead cost incurred exceeds the amount applied, it indicates that the factory overhead account is which of the following? Group of answer choices Under-allocated and will have a debit balance Over-allocated and will have a debit balance Over-allocated and will have a credit balance Under-allocated and will have a credit balance

If the actual amount of manufacturing overhead cost incurred exceeds the amount applied, it indicates that the factory overhead account is which of the following? Group of answer choices Under-allocated and will have a debit balance Over-allocated and will have a debit balance Over-allocated and will have a credit balance Under-allocated and will have a credit balance

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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Similar questions

Which of the following represents the cost of jobs completed but not yet sold? O a. Raw Materials Inventory O b. Cost of Goods Sold O c. Work in Process Inventory O d. Finished Goods Inventory O e. None of the given answer is correct
Job order costing and process costing : a. both allocate applied manufacturing overhead cost to product cost . b. compute product cost per unit differently . c. All the given answers are NOT correct . d. differently assign direct materials cost direct labor cost, and manufacturing overhead costs to products. e. do not use the same manufacturing accounts , including Manufacturing Overhead , Raw Materials , Work in Process , and Finished Goods
Which of the following statements is true? (You may select more than one answer.)a. The Manufacturing Overhead account is debited when manufacturing overhead isapplied to Work in Process.b. Job cost sheets accumulate the actual overhead costs incurred to complete a job.c. When products are transferred from work in process to finished goods it results ina debit to Finished Goods and a credit to Work in Process.d. Selling expenses are applied to production using a predetermined overhead ratethat is computed at the beginning of the period.
Identify the following features as applying more to job order operations (J), process operations (P),or both job order and process operations (B). Measures unit costs only at period-end.
Predetermined overhead rates are calculated: a. first and then multiplied by total actual units of the allocation base to compute the applied manufacturing overhead costs. b. based on actual total manufacturing overhead costs C. by dividing total estimated manufacturing overhead cost by total actual units of the allocation base. d. none of the given answers is correct. e. at the end of the accounting period once the actual amount of manufacturing overhead is known.
Manufacturing overhead is what is left after subtracting direct labor and direct material from total manufacturing costs. True or False True False
The journal entry for adjustment of underallocated manufacturing overhead includes a: A) credit to Finished Goods Inventory. B) credit to Manufacturing Overhead. C) debit to Work-in-Process Inventory. D) credit to Cost of Goods Sold.
When materials are used as indirect materials, their cost is debited to Facotry or Manufacturing overhead account. TRUE FALSE
provide correct option with explanation
The basis used for allocating manufacturing overhead (such as machine hours or direct labor hours) should closely align with O a. estimation techniques used in other areas of financial reporting. O b. the GAAP rules for allocating overhead. O C. the incurrence of overhead costs. d. the way that competitors allocate overhead.
Question: In cost accounting, what is the primary purpose of calculating the predetermined overhead rate? A) To allocate indirect costs to products based on a predetermined formula.B) To determine the actual overhead costs incurred during a specific production period.C) To calculate variable costs associated with each unit of production.D) To assess fixed costs that remain constant regardless of production levels.
Which one of the following is not a production overhead cost? Production line worker’s salary Machine running cost Machine maintenance cost Cost of printing bags with company logo