1 Into which of the following categories do companies generally classify manufacturing costs a Manufacturing overhead b Direct Labor c Administrative expenses d Direct materials e Selling expenses 2 What is the formula for a predetermined overhead rate a Actual total manufacturing overhead cost actual total cost driver b Estimated total cost driver estimated total manufacturing overhead cost c Estimated total manufacturing overhead cost estimated total cost driver d Actual total cost driver actual total manufacturing overhead cost 3 Hands on work that can be easily traced to a specific product is called direct labor 4 Place these items in the order in which they appear in the cost of goods sold section of the income statement a Plus Cost of goods manufactured second b Less Ending finished goods inventory third c Unadjusted cost of goods sold fourth d Beginning finished goods inventory first 5 Which of the following costs would NOT be classified as manufacturing overhead a A factory supervisor s salary b Tires used to produce vehicles this would be direct materials c Factory utilities d Depreciation on machinery 6 Direct materials are major material inputs that can be easily traced to a specific job 7 Which of the following is an attribute of companies that use job order costing a They make many different products b They make a very few products in large numbers c Products flow through the production process on a continuous basis 8 Process costing is used for homogenous products a b uses job cost sheets c d accumulates costs by customer is used for mass production 9 Put the steps from the schedule of cost of goods manufactured in the order in which they appear a Plus Beginning Work in process inventory second b Total current manufacturing costs first c Cost of goods manufactured fourth d Less Ending Work in process inventory third 10 The costs of goods manufactured report summarizes the flow of manufacturing costs from Raw Materials to Work in Process Inventory and into Finished Goods 11 A job cost sheet contains labor costs charged to the job a manufacturing overhead costs charged to the job b c materials costs charged to the job d e selling costs charged to the job the selling price of the job 12 Which of the following statements are true a Raw materials only include the cost of direct materials b Direct labor costs flow through the Raw materials inventory account c When materials are purchased they are recorded in the Raw materials inventory account d Raw materials used in production are transferred to Work in process 13 A company had a Gross profit of 100 000 Costs of goods sold of 70 000 and Selling and administrative expenses of 45 000 Net operating income loss was a 30 000 b 55 000 c 25 000 d 15 000 14 The document that records the materials labor and manufacturing overhead costs charged to a job is the a direct labor time ticket b materials requisition form c d production order job cost sheet 15 The cost of goods manufactured is the sum of all amounts transferred from Work in process to Finished goods during a period 16 Finished goods a consists of completed unsold goods b consists of goods that have been sold to customers during the period c consists of goods that require additional processing before being sold d is the same as cost of goods manufactured 17 When materials are requisitioned into production a direct materials are recorded on the job cost sheet b indirect materials are recorded as a separate line item on the job cost sheet indirect materials are recorded in Work in Process c d direct materials are recorded in Work in Process 18 Cost of goods manufactured is the total cost of jobs completed during the period 19 What is underapplied or overapplied overhead a overhead applied to work in process b actual overhead c d the sum of overhead applied to jobs and actual overhead the difference between overhead applied to jobs and actual overhead 20 When calculating a predetermined overhead rate the ideal allocation base should be a cost driver 21 Labor costs a are recorded in much the same way as material costs b are always recorded directly into Work in Process c may be direct or indirect d are determined from the job cost sheets 22 What is the formula for applying overhead to a specific job a Estimated manufacturing overhead cost driver usage for the specific job b Estimated manufacturing overhead X actual cost driver usage for the specific job specific job c Predetermined overhead rate X the actual cost driver usage for the d Estimated manufacturing overhead estimated total cost driver usage 23 When actual manufacturing overhead costs are incurred the manufacturing overhead cost is debited the manufacturing overhead cost is credited a b c a balance sheet account is debited d a balance sheet account is credited 24 When are applied manufacturing overhead costs credited to the Manufacturing Overhead account a As the costs are applied to jobs b When the jobs are sold c At the end of the period d As they are incurred 25 What are materials requisition forms for a Controlling the flow of materials from inventory into production b Summarizing the cost of a job c Recording the cost of raw materials in the accounting system d Specifying the cost of materials to be ordered 26 True or false Job order costing can only be used in manufacturing firms 27 What methods can be used to dispose of underapplied or overapplied manufacturing overhead a Allocating it to Raw Materials Work in Process and Finished Goods b Allocate it to Work in Process Finished Goods and Cost of Goods Sold c Closing it out to Work in process d Make a direct adjustment to Finished Goods e Make a direct adjustment to Cost of Goods Sold 28 Calculate total current manufacturing costs given the following Direct materials cost 62 000 Direct labor cost 78 000 Manufacturing overhead applied 46 000 Actual manufacturing overhead 51 000 Beginning Work in process inventory 32 000 Ending Work in process inventory 35 000 a 183 000 b 191 000 c 186 000 total manufacturing costs is calculated using applied not actual overhead 29 If there is a debit balance in Manufacturing Overhead after overhead has been applied to all jobs it means overhead was underapplied 30 300 000 2 500 370 000 3 000 Estimated manufacturing overhead Estimated direct labor hours Actual manufacturing overhead Actual direct labor hours Based on the information presented above calculate the predetermined overhead rate per direct hour a 124 00 per direct