Predetermined overhead rates are calculated: O a. based on estimated total manufacturing overhead costs O b. at the beginning of the accounting period once the actual amount of manufacturing overhead is known. O c. first and then multiplied by total actual units of the allocation base to compute the applied manufacturing overhead costs. O d. All the given answers are correct. O e. by dividing total estimated manufacturing overhead cost by estimated units of the allocation base.

Predetermined overhead rates are calculated: O a. based on estimated total manufacturing overhead costs O b. at the beginning of the accounting period once the actual amount of manufacturing overhead is known. O c. first and then multiplied by total actual units of the allocation base to compute the applied manufacturing overhead costs. O d. All the given answers are correct. O e. by dividing total estimated manufacturing overhead cost by estimated units of the allocation base.

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Description: Time left 1:5Predetermined overhead rates are calculated:O a. based on estimated total manufacturing overhead costsO b. at the beginning of the accounting period once the actual amount of manufacturingoverhead is known.O c. first and then multiplied

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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37.Applied overhead consists of which of the following? a. actual activity times predetermined overhead rate b. estimated activity times predetermined overhead rate c. actual activity times actual overhead rate d. estimated activity times actual overhead rate
The Predetermined Overhead Rate is used to find the equivalent units. Select one: O a. FALSE O b. TRUE
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.
Multiple predetermined overhead rates: calculated for each department by dividing total estimated manufacturing overhead cost by total actual units of the allocation base. O a. O b. makes job-order costing less accurate accounting for costs. O c. none of the given answers is correct. O d. are based on actual total manufacturing overhead costs are calculated at the beginning of the accounting perioc before the actual amount of manufacturing overhead is known. O e.
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.
2. Which of the following is a possible cost driver that may be used in calculating a company's predetermined overhead rate? A) Direct labour hours B) Direct labour dollars C) Machine hours D) All of the above
Total manufacturing cost in a job-sheet for job-order costing, includes: a. Actual direct materials costs b. None of the given costs in the answers. С. Actual direct labor costs d. All of the given costs in the answers. e. Applied manufacturing overhead costs
Total manufacturing costs for a period consist of the cost of direct materials used, the cost of direct labour incurred, and the actual manufacturing overhead cost incurred during the period. True O False
In traditional approach, overheads are absorbed based on: a. Machine hours b. Direct labour c. All the options listed d. Direct wages
The following information was taken from the annual manufacturing overhead cost budget of Indigo Company: Variable manufacturing overhead costs Fixed manufacturing overhead costs Normal production level in labour hours Normal production level in units Standard labour hours per unit $36,660 $19,500 15,600 3,900 During the year, 3,700 units were produced, 15,000 hours were worked, and the actual manufacturing overhead was $55,980. Actual fixed manufacturing overhead costs equalled the budgeted fixed manufacturing overhead costs. Overhead is applied based on direct labour hours.
1. Overhead is most often applied to production on the basis ofa. direct labor hours.b. machine hours.c. raw material usage.d. number of units made.e. direct labor costs.