Question 1 (1 point) Which of the following companies is most likely to use a job- order costing system rather than a process costing system? A) Fast food restaurant B) Shipbuilder C) Crude oil refinery D) Candy maker Question 2 (1 point) Question 2 (1 point) Which of the following contain(s) the detailed cost data that support the Work in Process control account? A) Job cost sheets B) The Manufacturing Overhead account. C) The Finished Goods inventory account. D) Purchase requisitions. Ouestion 3(1 noint) Question 3 (1 point) In a normal job-order costing system, the use of indirect materials would usually be recorded as a debit to which account? A) Raw Materials. B) Work in Process. C) Manufacturing Overhead. D) Finished Goods. Which of the following statements is true if a company applies overhead to jobs on the basis of a predetermined overhead rate and reports a credit balance in the Manufacturing Overhead account at the end of any period? A) More overhead cost has been charged to jobs than has been incurred during the period. B) More overhead cost has been incurred during the period than has been charged to jobs. c) The amount of overhead cost charged to jobs is greater than the estimated cost for the period. D) The amount of overhead cost charged to jobs is less than the estimated overhead cost for the period. Question 5 (1 point) Freeman Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $150,000 and direct labour hours would be 10,000. The actual figures for the year were $186,000 for manufacturing overhead and 12,000 direct labour hours. The cost records for the year will show Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labour cost basis in Department A and on a machine hours basis in Department B. At the beginning of the most recently completed year, the company made the following estimates: $56,000 $33,000 Direct labour cost Manufacturing overhead $67,200 $45,000 Direct labour hours 8,000 9,000 Machine hours 4,000 15,000 What predetermined overhead rate would be used in Departments A and B, respectively? A) 83% and $5.00 The Samuelson Company uses a job-order costing system. The following data were recorded for June: Added During June Work in Process Job Number nventory, June 1 Direct Materials Direct Labour $400 600 900 $1,000 $ 200 $800 $1,400 $1,900 475 $1,000 476 900 $ 800 477 600 478 Overhead is charged to production at 70% of the direct materials cost. Jobs 475, 477, and 478 have been delivered to the customer. What was Samuelson's Work in Process inventory balance on June 30? Question 5 (1 point) Freeman Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $150,000 and direct labour hours would be 10,000. The actual figures for the year were $186,000 for manufacturing overhead and 12,000 direct labour hours. The cost records for the year will show
