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2. Which of the following is assigned to goods that were either
purchased or manufactured for resale?
3. In a traditional job order cost system, the issue of indirect
materials to a production department increases
4. The accountant for Champion Brake, Inc. applies overhead
based on machine hours. The budgeted overhead and machine hours
for the year are $260,000 and 16,000, respectively. The actual
overhead and machine hours incurred were $275,000 and 20,000. The
cost of goods sold and inventory data compiled for the year is as
follows: Direct Materials $ 50,000, COGS 450,000, WIP (units)
100,000, Finished Goods (units) 150,000. What is the amount of
over/under applied overhead for the year?
5. If a product required a great deal of electricity to produce, and
crude oil prices increased, which of the following costs most likely
increased?
6. Fab Co. manufactures textiles. Among Fab's 2004
manufacturing costs were the following salaries and wages: Loom
operators $120,000, Factory foremen 45,000, Machine mechanics
30,000. What was the amount of Fab's 2004 direct labor?
7. In a process cost system, the application of factory overhead
usually would be recorded as an increase in
8. Jonathan Mfg. adopted a job-costing system. For the current
year, budgeted cost driver activity levels for direct labor hours and
direct labor costs were 20,000 and $100,000, respectively. In addition,
budgeted variable and fixed factory overheads were $50,000 and
$25,000, respectively. The actual costs and hours for the year were as
follows: Direct labor hours 21,000, Direct labor costs $110,000,
Machine hours 35,000. For a particular job, 1,500 direct labor hours
were used. Using direct labor hours as the cost driver, what amount of
overhead should be applied to this job?