Multiple predetermined overhead rates:a. improves job-order costing's accuracy accounting forcosts.O b. are calculated at the ending of the accounting periodonce the actual amount of manufacturing overhead isknown.О с.All the given answers are NOT correct.O d. calculated for each department by dividing totalestimated manufacturing overhead cost by totalactual units of the allocation base.e.are based on actual total manufacturing overheadcosts

Name: Multiple predetermined overhead rates:a. improves job-order costing's
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Description: Multiple predetermined overhead rates:a. improves job-order costing's accuracy accounting forcosts.O b. are calculated at the ending of the accounting periodonce the actual amount of manufacturing overhead isknown.О с.All the given answers are NOT c

Multiple predetermined overhead rates are calculated by dividing Estimated overhead costs by their…

Business

Accounting

Multiple predetermined overhead rates: a. improves job-order costing's accuracy accounting for costs. O b. are calculated at the ending of the accounting period once the actual amount of manufacturing overhead is known. All the given answers are NOT correct. O d. calculated for each department by dividing total estimated manufacturing overhead cost by total actual units of the allocation base. e. are based on actual total manufacturing overhead costs

Multiple predetermined overhead rates: a. improves job-order costing's accuracy accounting for costs. O b. are calculated at the ending of the accounting period once the actual amount of manufacturing overhead is known. All the given answers are NOT correct. O d. calculated for each department by dividing total estimated manufacturing overhead cost by total actual units of the allocation base. e. are based on actual total manufacturing overhead costs

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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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.
Select each of the items with the best description of its purpose. Description Items 1. Holds indirect cost until assigned to production. 2. Used when materials move continuously through a manufacturing process. 3. Hold production costs until products are transferred from production to finished goods (or another department). 4. Computes equivalent units only on production activity in the current period. 5. Standardizes partially completed units into equivalent completed units. 6. Combined costs of direct labor and overhead per equivalent unit. 7. Holds costs of finished products until sold to customers.
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.
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.
Costs that are incurred as part of the manufacturing process, but are not clearly traceable to the specific unit of product or batches of product, are called a. Period costs. d. Operating expenses. b. Factory overhead. e. Fixed costs. c. Variable costs.
Match each definition with its related term by selecting the appropriate term in the dropdown provided. Dropdown options: An accounting system that records all actual amounts after the expense has occurred. An accounting system that records all costs based on estimated amounts. An accounting system that records all direct materials and direct labor at actual amounts, while assigning manufacturing overhead costs using predetermined overhead rates. Difference between actual and planned results. Standards that are tight but are used to motivate individuals to work hard and achieve results. Standards that can be achieved only under perfect conditions. The difference between actual cost and the flexible budget for materials. The difference between actual labor hours and standard labor hours multiplied by the actual labor rate. The difference between actual labor hours and standard labor hours multiplied by the standard labor rate. The difference between actual price and standard price…
Determining the basis for applying manufacturing overhead costs involves OA. primarily the accumulation of direct labor hours since virtually all overhead costs are driven by direct labor hours. B. primarily the maintaining of accurate records of production volume since virtually all overhead costs are driven by the number of units proc OC. the determination of a measure of activity that is a causal factor in the incurrence of overhead cost. OD. actual rather than budgeted levels of activity. Reset Selection
Job order costing and process costing: a. differently assign direct materials cost, direct labor costand manufacturing overhead costs to products . b. both allocate applied manufacturing overhead cost to product cost. do not use the same manufacturing accounts, including Manufacturing Overhead Raw Materials, Work in Process, and Finished Goods. the given answers are NOT correct. e. compute product cost per unit differently.
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.
I. In job-order costing, when the predetermined overhead rate is based on direct labor-hours, the amount of overhead applied to a job is proportional to the amount of actual direct labor-hours incurred on the job. II. In job-order costing, the work in process inventory account contains the actual costs of direct labor, direct materials, and manufacturing overhead incurred on partially completed jobs. A. Both statement are false b. Both statement are true c. Only statement I is true d. Only statement II is trye