Question
Hello there, need a little help with the following: 1) Material amounts of under- or overapplied factory overhead are always closed entirely to Cost of
Hello there, need a little help with the following:
1) Material amounts of under- or overapplied factory overhead are always closed entirely to Cost of Goods Sold at the end of an accounting period.
True or False?
2) The B&T Company's production costs for May are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production facility, $800; factory heat, lights and power, $1,000; and insurance on plant and equipment, $200. B&T Company's factory overhead incurred for May is:
3) The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as:
Overapplied overhead?
4) verapplied overhead is the amount by which overhead applied to jobs using the predetermined overhead rate exceeds the actual overhead incurred during a period.
True or False?
5) Mesa Corp. allocates overhead to production on the basis of direct labor costs. Mesa's total estimated overhead is $450,000 and estimated direct labor is $180,000. Determine the amount of overhead applied to a job which used $20,000 of direct labor.
6) Under a job order costing system, individual jobs are always charged with actual overhead costs when they are transferred to finished goods.
True or False?
7) The direct materials section of a job cost sheet shows the materials costs assigned to a specific job, but the direct labor section only shows the total hours of labor allocated to the job.
True or False?
8) The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,100 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $1,940 and direct labor cost of $720. Therefore, the amount of the applied overhead is:
9) Cosi Company uses a job order costing system and allocates its overhead on thebasis of direct labor costs. Cosi expects to incur $770,000 of overhead during the next period, and expects to use 47,000 labor hours at a cost of $10.00 per hour. What is Cosi Company's overhead application rate?
10) If one unit of Product Z2 used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale?
Thank you so much in advance.
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