Which of the following is false about actual overhead while using normal costing?a.Actual overhead is recorded to the overhead control account during the period.b.If the actual overhead is greater than the applied overhead then the overhead isunderappliedOverhead variance is the difference between actual overhead and appliedC.overhead.d.It is divided into many smaller accounts such as indirect labor, supplies, etc.е.None of these.Select one:O cO dO aO eO b

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Description: Which of the following is false about actual overhead while using normal costing?a.Actual overhead is recorded to the overhead control account during the period.b.If the actual overhead is greater than the applied overhead then the overhead isundera

In normal cost system, Unit cost is determined by adding actual direct materials, actual direct…

Answered: Which of the following is false about…

Business

Accounting

Which of the following is false about actual overhead while using normal costing?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter4: Job-order Costing And Overhead Application

Section: Chapter Questions

Problem 7MCQ: The overhead variance is overapplied if a. actual overhead is less than applied overhead. b. actual...

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Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure. 

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

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Question

Which of the following is false about actual overhead while using normal costing?
a.
Actual overhead is recorded to the overhead control account during the period.
b.
If the actual overhead is greater than the applied overhead then the overhead is
underapplied
Overhead variance is the difference between actual overhead and applied
C.
overhead.
d.
It is divided into many smaller accounts such as indirect labor, supplies, etc.
е.
None of these.
Select one:
O c
O d
O a
O e
O b

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Under-applied manufacturing overhead costs are always the result of which of the following situations? O a. Actual overhead costs are greater than estimated overhead costs. of O b. Applied overhead costs are less than actual overhead costs. stion O c. Estimated overhead costs are greater than actual overhead costs. O d. Actual overhead costs are less than applied overhead costs.
Overhead costs are overapplied if the amount applied to Work in Process is: a. equal to actual overhead incurred. b. less than actual overhead incurred. O c. None of the given answer is correct O d. equal to estimated overhead. less than estimated overhead. е.
Which of the following statement is false? Multiple Choice Fixed manufacturing overhead is treated as a product cost under absorption costing method. Variable costing method is more useful than absorption costing approach in internal and managerial decision-making. The absorption costing approach is used in external financial reporting. The contribution margin income statement format separates costs according to cost behaviour. Fixed manufacturing overhead is treated as a period cost under absorption costing method.
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Traditional overhead allocations result in which of the following situations? a. Overhead costs are assigned as period costs to manufacturing operations. b. High-volume products are assigned too much overhead, while low-volume products are assigned too little overhead. c. Low-volume products are assigned too much overhead, while high-volume products are assigned too little overhead. d. The resulting allocations cannot be used for financial reports.
PLEASE EXPLAIN YOUR ANSWER AND DO NOT GIVE PLAGRIZED ANSSWER
Which of the following statements is false? a. Actual overhead costs always enter the Work-in-Process account. in b. The cost of a job includes direct materials, direct labor, and applied overhead. The use of normal costing means that overhead is applied to each job using a predetermined rate. C. d. Indirect labor is assigned as a part of overhead. e. None of these are correct. Select one: O b O e a
Which is not a step in analyzing the cost driver for manufacturing overhead?A. identify the costB. identify non-value-added costsC. analyze the effect on manufacturing overheadD. identify the correlation between the potential driver and manufacturing overhead