24. The entry to record direct labor costs into production in a job order cost accounting system is:

Group of answer choices

debit Work in Process, credit Wages Payable

debit Finished Goods, credit Wages Payable

debit Factory Overhead, credit Work in Process

debit Factory Overhead, credit Wages Payable

25. Sam's Shirts manufactures men's dress shirts. If the cost pool is the overall production process, which of the following would be considered an indirect cost?

Group of answer choices

The cost of material

The salary of the production manager

The labor cost to sew the shirts

None of the above are indirect costs

26. If the cost of materials purchased in the period is $120,000, and, $95,000 of those materials are used in the manufacturing process, then:

Group of answer choices

the unused $25,000 is a period cost

the unused $25,000 is part of work-in-process inventory in the period

the unused $25,000 is classified as materials inventory on the balance sheet

the unused $25,000 is part of finished goods inventory on the balance sheet

27. Collins Company forecasts in January that total overhead for the current year will be $12,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $8,000,000 and actual machine hours are 100,000 hours. If Collins Company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate?

Group of answer choices

$80 per hour

$120 per hour

$66.67 per hour

$40 per hour

$60 per hour

28. Activity Based Costing (ABC) is most useful when used in a company that produces a single product through a single process

Group of answer choices

True

False

29. Activity Based Costing (ABC) is required for most GAAP financial reporting

Group of answer choices

True

False

30. Activity-based costing

Group of answer choices

applies only to discretionary fixed costs

is used only in JIT operations

requires the identification of cost drivers

all of the above

31. A company using activity-based overhead rates

Group of answer choices

will usually have higher budget variances than one using a single rate

will usually have higher volume variances than one using a single rate

cannot compute fixed and variable components of overhead cost

should have better information for planning and control than one using a single rate

32. The formula to calculate the predetermined factory overhead rate is:

Group of answer choices

estimated activity base/estimated total factory overhead costs

estimated labor costs/estimated total factory overhead costs

estimated total factory overhead costs/estimated labor costs

estimated total factory overhead costs/estimated activity base

33. What is the journal entry to record materials in the amount of $65,000 purchased on account?

Group of answer choices

Accounts Payable debit $65,000, Materials credit $65,000

Work in Process debit $65,000, Accounts Payable credit $65,000

Accounts payable debit $65,000, Work in Process credit $65,000

Materials debit $65,000, Accounts Payable credit $65,000

34. What is the journal entry used to record indirect labor used in production of $22,685?

Group of answer choices

Work in Process debit $22,685, Factory Overhead credit $22,685

Work in Process debit $22,685, Wages Payable credit $22,685

Factory Overhead debit $22,685, Work in Process credit $22,685

Work in Process debit $22,685, Raw Materials credit $22,685

Factory Overhead debit $22,685, Wages Payable credit $22,685

35. What is the journal entry used to record the completion of jobs in the amount of $14,685?

Group of answer choices

Work in Process debit $14,685, Finished Good credit $14,685

Finished Goods debit $14,685, Raw Materials credit $14,685

Work in Process debit $14,685, Wages Payable credit $14,685

Finished Goods debit $14,685, Work in Process credit $14,685 Work in Process debit $14,685, materials credit $14,685

Work in Process debit $14,685, Materials credit $14,685

36. What is the journal entry used to record nonmanufacturing factory overhead costs incurred on account of $4,000?

Group of answer choices

Work in Process debit $4,000, Factory Overhead credit $4,000

Factory Overhead debit $4,000, Raw Materials credit $2,000, Wages Payable credit $2,000

Accounts Payable debit $4,000, Factory Overhead credit $4,000

Factory Overhead debit $4,000, Accounts Payable debit $4,000

Work in Process debit $4,000, Wages Payable credit $4,000

37. What is the journal entry used to record factory overhead applied in the amount of $7,200?

Group of answer choices

Raw Materials debit $7,200, Work in Process credit $7,200

Factory Overhead debit $7,200, Work in Process credit $7,200

Work in Process debit $7,200, Wages Payable credit $7,200

Factory Overhead debit $7,200, Work in Process credit $7,200

Work in Process debit $7,200, Factory Overhead credit $7,200

38. Cadott Manufacturing produces three products. Production and cost information show the following:

Model X Model Y Model Z Total

Units produced 1,000 3,000 6,000 10,000

Direct labor hours 2,000 1,000 2,000 5,000

Number of inspections 20 30 50 100

Inspection costs totaled $100,000. Using ABC, inspections costs allocated to each unit of Model Y would be:

Group of answer choices

$ 6.67

$10.00

$20.00

$33.00

Some other number

39. Danner Company produces ships and tanks, and, incurs $1,600,000 in manufacturing overhead costs each month. The company has been allocating overhead to individual product lines based on direct labor hours.

Amount Total Estimated

Cost driver In Pool Activity

----------- -------- ---------

Direct labor hours $500,000 40,000

Number of setups 700,000 1,000

Number of tests 400,000 500

----------

Total overhead costs $1,600,000

==========

Two of Danner's manufactured product have the following characteristics:

Ships Tanks

--------- ---------

Direct labor hours 2,000 1,000

Number of setups 20 100

Number of tests 2 150

Using Danner Company information, determine overhead to be allocated to each product using direct labor hours as the lone cost driverplantwide method.

Group of answer choices

Ships $25,000, Tanks $12,500 respectively

Ships $37,500, Tanks $18,750 respectively

Ships $80,000, Tanks $40,000 respectively

Ships $120,000, Tanks $60,000 respectively

Some other number

40. Danner Company produces ships and tanks, and, incurs $1,600,000 in manufacturing overhead costs each month. The company has been allocating overhead to individual product lines based on direct labor hours.

Amount Total Estimated

Cost driver In Pool Activity

----------- -------- ---------

Direct labor hours $500,000 40,000

Number of setups 700,000 1,000

Number of tests 400,000 500

----------

Total overhead costs $1,600,000

==========

Two of Danner's manufactured product have the following characteristics:

Ships Tanks

--------- ---------

Direct labor hours 2,000 1,000

Number of setups 20 100

Number of tests 2 150

Using Danner Company information, determine overhead allocated to each SHIP (only) made using three cost drivers identifiedABC method.

Group of answer choices

Total Overhead Allocated = Direct Labor $12,500 + Setups $70,000 + Tests $120,000 = $202,500

Total Overhead Allocated = Direct Labor $25,000 + Setups $14,000 + Tests $1,600 = $40,600

Total Overhead Allocated = Direct Labor $37,500 + Setups $84,000 + Tests $121,600 = $202,500

Some other number