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Exam 3: Job Costing

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Question 141

Multiple Choice

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Determining how much manufacturing overhead is overallocated or underallocated

A) is done before the period starts.
B) is done during the period.
C) can be done at any time.
D) is done at the end of the period.

E) A) and B)
F) A) and C)

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Question 142

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Job costing is not commonly used by service firms (such as law firms)or trades people (such as auto mechanics).

A) True
B) False

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Question 143

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The total cost of a job shown on the job cost record is the sum of the direct labor traced to the job and the manufacturing overhead allocated to the job.

In the basic flow of inventory through a manufacturing system, which of the following occurs first in a job costing system?

The underallocation or overallocation of overhead is a direct result of using a predetermined manufacturing overhead rate rather than the actual manufacturing overhead rate.

Allocating manufacturing overhead to jobs simply means "splitting up" the total manufacturing overhead costs among the jobs produced during the year.

In the basic flow of inventory through a manufacturing system, which of the following occurs third in the job costing system?

Here are selected basic data for Boston Bracing Company: If the company allocates overhead based on direct labor cost, what are the total actual manufacturing overhead costs?

Oakland Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Determine the following: a)Predetermined manufacturing overhead rate using direct labor cost as the allocation base b)Predetermined manufacturing overhead rate using direct labor hours as the allocation base c)Allocated manufacturing overhead costs based on direct labor cost for the year d)Allocated manufacturing overhead costs based on direct labor hours for the year

When the products are shipped to customers, the cost of manufacturing those products becomes Cost of Goods Sold (COGS)shown on the company's balance sheet.

The key to allocating indirect manufacturing costs to jobs is to identify an appropriate allocation base.

The first three steps to allocating manufacturing overhead are taken before the year begins and include all of the following except

Jasper Carts manufactures custom carts for a variety of uses. The following data have been recorded for Job 651, which was recently completed. Direct materials used cost $7700. There were 178 direct labor hours worked on this job at a direct labor wage rate of $22 per hour. There were 90 machine hours used on this job. The predetermined overhead rate is $32 per machine hour used. What is the total manufacturing cost of Job 651?

Here is some basic data for Honey Dukes Corporation: The journal entry to record the cost of jobs sold would include a

A labor time record identifies the employee and the amount of time the employee spent on a particular job.

Briefly explain the flow of inventory through a manufacturing system into a company's job costing system from the purchase of materials to the sale of the products.

Deco Corporation uses a job costing system. On January 1, Deco corporations work in process inventory account had a balance of $76,000. During the year, materials requisitioned for use in production amounted to $120,100, of which $82,800 represented direct materials. Factory wages for the period were $231,000, of which $220,000 were for direct labor. Manufacturing overhead is allocated on the basis of 80% of direct labor cost. Actual overhead cost for the year was $125,100. Jobs costing $336,500 were completed during the year. The December 31 work in process inventory balance is

Before the year began, Butler Manufacturing estimated that manufacturing overhead for the year would be $176,100 and that 13,700 direct labor hours would be worked. Actual results for the year included the following: The amount of manufacturing overhead allocated for the year based on direct labor hours would have been (Round intermediary calculations to the nearest cent.)

A manufacturer of luxury yachts would use which type of costing system?

Smarty Pants Corporation manufactures high end custom batches of designer pant suits. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 612 are as follows: What amount of manufacturing overhead would be allocated to Job 612?