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Exam 4: Job Costing

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Question 51

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Apple Valley Corporation uses a job cost system and has two production departments,A and B.Budgeted manufacturing costs for the year are: The actual material and labor costs charged to Job #432 were as follows: Apple Valley applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year. For Department B,the manufacturing overhead allocation rate is ________.

A) 50.0%
B) 90.0 %
C) 200.0%
D) 250.0%

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Question 52

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The adjusted-allocation rate approach offers the benefit of a costing system that provides overhead cost data during the year so that pricing,budgeting,and interim reporting can occur and a year-end adjustment to manufacturing overhead allocations to individual jobs that are better aligned with actual manufacturing overhead costs that are known at year-end.

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Question 53

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Cost objects may be jobs,products,or customers.

Actual costing helps managers get information earlier and take corrective measures to improve labor efficiency.

The advantage of using normal costing instead of actual costing is ________.

Normal costing is a method of job costing that allocates an indirect cost based on the actual indirect-cost rate times the actual quantity of the cost-allocation base.

Assigning direct costs to a cost object is called ________.

Describe job-costing and process-costing systems.Explain when it would be appropriate to use each.

An increase in direct labor cost per unit ________.

A manufacturer utilizes three separate indirect cost pools.Which of the following is true?

Which of the following increases (are debited to) the Work-in-Process Control account?

Lancelot Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year.The following estimates are provided for the coming year for the company and for the Case High School band jacket job. What is the bid price for the Case High School job if the company uses a 40% markup of total manufacturing costs?

The ________ adjusts individual job-cost records to account for underallocated or overallocated overhead.

The actual indirect-cost rate is calculated by dividing actual total indirect costs by the budgeted total quantity of the cost-allocation base.

The difference between actual costing and normal costing is ________.

Job costing is ________.

Franklin Inc.manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $15 per direct labor-hour.The following data are obtained from the accounting records for June 2018: The amount of manufacturing overhead allocated to all jobs during June 2018 totals ________.

Explain how the following statement be true: Often the manufacturing overhead control account (debit)does not equal the manufacturing overhead allocated account (credit).

The Robinson Corporation manufactures automobile parts.During the year,the company sold $5,600,000 of parts that had a cost of $3,200,000.At year end,these are the balances for cost of goods sold and its manufacturing overhead accounts: Cost of goods sold $3,200,000 Manufacturing overhead allocated $1,400,000 Manufacturing overhead control $1,495,000 What would be the correct journal entry to close out the overhead accounts assuming that the write-of to cost of goods sold approach is used?

River Falls Manufacturing uses a normal cost system and had the following data available for 2018: The journal entry to record the materials placed into production would include a ________.