?Which of the following statements is not correct concerning multiple overhead rate systems None of the given answers .a O A company may choose to create a separate overhead rate for each of its production b O .departments shi In departments that are relatively labor-intensive, their overhead costs should be applied to .c O jobs based on direct labor-hours rather than on machine-hours A multiple overhead rate system is more complex than a system based on a single plantwide d O .overhead rate A multiple overhead rate system is usually more accurate than a system based ona single .e O .plantwide overhead rate

?Which of the following statements is not correct concerning multiple overhead rate systems None of the given answers .a O A company may choose to create a separate overhead rate for each of its production b O .departments shi In departments that are relatively labor-intensive, their overhead costs should be applied to .c O jobs based on direct labor-hours rather than on machine-hours A multiple overhead rate system is more complex than a system based on a single plantwide d O .overhead rate A multiple overhead rate system is usually more accurate than a system based ona single .e O .plantwide overhead rate

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

LockTite Company produces two products, Pretty Safe (PS) and Virtually Impenetrable (VI). The following two tables give pertinent information about these products. Solve, a. What is the cost per unit of Pretty Safe if LockTite uses traditional overhead allocation based on number of units produced? b. What is the cost per unit of Pretty Safe if LockTite uses activity-based costing to allocate overhead?
Which of the following statements is false? (You may select more than one answer.)a. In recent years, most companies have experienced increasing manufacturing overhead costs in relation to direct labor costs.b. Activity-based costing systems may use direct labor-hours and/or machine-hoursto assign unit-level costs to products.c. Facility-level costs are not caused by particular products.d. Product-level costs are larger for high-volume products than for low-volumeproducts.
QUESTION 9 Using a plant-wide factory overhead rate distorts product costs when: A. products require different ratios of allocation-base usage in each production department B. significant differences exist in the factory overhead rates used across different production departments C. both A and B exist D. either A or B exist
- Online i Total costs accumulated for a particular job are typically presumed to be less accurate when a company uses multiple overhead rates. True or False True False
Time left Activity-based costing: O a. provides the same results as the departmental overhead costing O b. typically applies overhead costs using direct labor-hours O c. None of the given answer. O d. does not assign any non-manufacturing overhead costs to product costs. O e. uses a pool rate for all costs incurred by the same activity which can reduce the number of cost assignments required. CLEAR MY CHOICE In Al-Waha Water Bottling Company, costs incurred for research and developments would be classified as a: O a. none of the given answers. O b. Unit level activity. of O c. Batch level activity. O d. Organization- sustaining level activity. O e. Product- sustaining level activity. CLEAR MY CHOICE NEXT PAGE MacBook Air FB F7 吕口 F3 F5 F1 F2 * % $ 4 @ 7 8 A9 6 一 W E R Y *** ق DSF G K S ش X, C V BiN M %#3
Asap Which of the following is not a factory overhead allocation method? a.activity-based costingb.factory costingc.single plantwide rated.multiple production department rates
Which of the following is correct with respect to closing out underapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? Select one: O a. The balance in the Work-in-Process account after allocation will be higher if the underapplied overhead is closed out by allocating it to all appropriate accounts. O b. Cost of Goods Sold will be higher if the underapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. Oc. None of given ANSWER is correct. O d. Operating income will be higher if all of the underapplied overhead is closed out to Cost of Goods Sold. O e. The balance in the Work-in-Process account after allocation will be the same under either method.
Why would a manufactury company with multiple production department still prefrer to use a single plantwide overhead rate
Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? The balance in the Work-in-Process account after allocation will be higher if the overapplied overhead is closed out by allocating it to all appropriate accounts. a. b. None of given answer is correct. С. Cost of Goods Sold will be lower if the overapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. d. Operating income will be higher if all of the overapplied overhead is closed out to Cost of Goods Sold. e. The balance in the Work-in-Process account after allocation will be the same under either method. Clear my choice
Which of the following statements regarding activity-based costing (ABC) is NOT correct? a. Under ABC cost centres are replaced by cost pools b. Blanket overhead recovery rates (OAR) are replaced with cost driver rates c. ABC uses one common overhead recovery rate, such as labour hours. d. ABC tackles the problems of absorption costing by adopting a much more accurate way of charging overhead to cost units.
When multiple production department rates are used to apply overhead to products, a. all overhead costs are first directly traced to support and production departments and then support department costs are allocated to production departments b. only fixed overhead costs are first directly traced to support and production departments and then support department costs are allocated to production departments c. all manufacturing costs are first directly traced to support and production departments and then support department costs are allocated to production departments d. support department costs are allocated to production departments and then all overhead costs are directly traced to support and production departments
Which one of the following is not correct about job-order costing systems and process costing systems? O a Job order costing systems and process costing systems use similar manufacturing accounts. O b. None of the given answers Oc In process costing systems cost accumulation is done on a department basis. Od. Job order costing systems and process costing systems have different flow of costs through manufacturing accounts, O e. Job order costing systems normally used when there are varieties of products to produced. Which one of the following is not correct regarding the predetermined overhead rate? O a The predetermined overhead rate is normally calculated at the beginning of the period. Ob. The predetermined overhead rate is used to assign manufacturing overhead costs to cost objects such as products. OC None of the given answers. O d. The predetermined overhead rate uses actual figures for the manufacturing overhead cost but estimated figures for the cost allocation basis amount. O…