Required A Required B Assume that Fanning has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. (Negative amounts should be indicated by a minus sign.) Job A Contract price Unit-level materials Unit-level labor Unit-level overhead Supervisor's salary Decision Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Insurance cost for job Contribution to profit (loss) Recommend which ich to accept? $ Job B 0 $ 0

Required A Required B Assume that Fanning has decided to accept one of the two jobs. Fill in the information relevant to selecting one job versus the other. (Negative amounts should be indicated by a minus sign.) Job A Contract price Unit-level materials Unit-level labor Unit-level overhead Supervisor's salary Decision Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Insurance cost for job Contribution to profit (loss) Recommend which ich to accept? $ Job B 0 $ 0

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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Which of the following statements Is false regarding Job-order costing? Multiple Choice It is used in situations where many different products, each with unique features, are produced each period. It is used for manufacturing companies, but not service companies. It accumulates each job's costs on a job cost sheet. It can be used to calculate a job's unit product cost.
A job order cost system identifies costs with a particular job rather than with a set time period. True False
Which of the following statements are true? I. In a job-order costing system, indirect labor is assigned to a job using information from the employee time ticket. II. If the allocation base in the predetermined overhead rate does not drive overhead costs, it will nevertheless provide reasonably accurate unit product costs because of the averaging process. III. In a job-order costing system, costs are traced to individual units of product. The sum total of such traced costs is called the unit product cost. Multiple Choice Only statement I is true. Statements I and II are true. Statements II and III are true. None of the statements are true.
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The manager of the manufacturing unit of a company is responsibie for the costs of the manufacturing unit. The president is in the process of deciring whether to evaluate the manager af the manutacturing unit by the average cost per unit or the vartable cost per unit Quality and urmely delivery would be used in corunction with the cust mesure lo rewerd the maneger Required: a What problems are associated with using the average cost per unit as a pertormance measure b. What problems are associated with using the variable cost per unit as a performance measure?
DO NOT GIVE SOLUTION IN IMAGE
Which of the following is NOT an objective of job costing? Select the correct response: To determine the cost of production of every order To plan future course of activities To control operational efficiency by comparing actual costs with estimated costs To determine the profitability of each job in order to undertake present orders of different nature
Select and “X” in the column that corresponds to the cost classification for each of the following scenarios. Some items may fit in more than one column.
Required: Classify the following costs as period or traceable costs. Depreciation on office building Insurance expense for factory building Product liability insurance premium Transportation charges for raw materials Factory repairs and maintenance Rent for inventory warehouse Cost of raw materials Factory wages Salary to chief executive officer Depreciation on factory Bonus to factory workers Salary to marketing staff Administrative expenses Bad debt expense Advertising expense Research and development Warranty expense Electricity for plant
An example of a nonproduction cost is a.wages paid to assembly-line employees. b.manufacturing supplies. c.the treasurer's salary. d.insurance on manufacturing facilities.
Which one is the correct answer?
1. Determine the total estimated overhead cost for each of the producing departments after allocating the cost of the service department. A. Using employee headcount as the allocation base. B. Using occupied space as the allocation base. C. Using productive capacity as the allocation base. D. Using the 3-year average use as the allocation base.