Question
Annual estimates include fixed overhead $100,000, direct labor hours 5,000, variable overhead rate $5.75, direct labor cost $50,000. If overhead is allocated based on direct
Annual estimates include fixed overhead $100,000, direct labor hours 5,000, variable overhead rate
$5.75, direct labor cost $50,000. If overhead is allocated based on direct labor hours, compute the annual
Estimate for total overhead.
a. | $128,750 |
b. | $133,750 |
c. | $178,750 |
d. | $150,000 |
e. | $200,000 |
36. Which form is used to assign raw materials to a job?
a. | time ticket |
b. | materials requisition form |
c. | job-order cost sheet |
d. | Materials assignment form |
e. | All of these are correct. |
37. Which form is used to assign costs to a particular job
a. | time ticket |
b. | Job summary ticket |
c. | Job cost sheet |
d. | Material requisition form |
e. | All of these are correct. |
38. Companies use predetermined overhead rates instead of actual end of period overhead because:
a. | Use of a predetermined overhead rate is required by GAAP |
b. | Job summary tickets may not produce accurate OH allocations |
c. | Management can not wait until the end of an accounting period to apply overhead, need to know job costs on a real time basis |
d. | Predetermined overhead rates are typically more accurate than waiting for end of period overhead |
e. | All of these are correct. |
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