Question 12 Jazz Man, Inc. makes saxophones. Applied Overhead for the period was $24,400. Actual Overhead was $25,321. In this situation the Factory Overhead Account would have a balance and the Factory Overhead would be debit, overapplied credit, overapplied debit, underapplied credit, underapplied Question 13 l 5 Point A balance at the end of the fiscal year in the Factory Overhead Account is usually carried forward to the next year. Question 14 During the accounting period, Work in Process Inventory will be debited for G) Sales Salaries Work sent to Completed Goods Direct Labor Costs When a company makes custom products it usually tracks its product costs with a Job Order Costing system. A True B FalseQuestion 16 If Factory Overhead is overappiied at the end of the accounting period it will overstate COGS and should be corrected it will understate COGS and should be corrected it means that actual Factory Overhead is more than the Applied Inventory it should be carried forward to next year Question 17 5 Poir Smiggly Enterprises makes Crocquet Sets. Consider the following cost information for the month of January (5,300 units were produced): Total Direct Materials $32,000 Total Direct Labor 44,500 Total Factory Overhead 7,500 Selling Expense 4,400 Executive Salaries 7,800 Calculate the Cost-per-Unit attributed to January's production. A $16.68 B $14.22 C $20.08 per unit D $15.85 per unitQuestion 18 A lawyer or accountant often uses a Process Cost System to track the ow of costs through their business. Question 19 lumpstart Corp expects to incur $70,000 of factory overhead and $60,000 of general and administrative costs next year. Direct labor costs @ $5 per hour are expected to total $50,000. lffactory overhead is applied per direct labor hour, how much overhead will be applied to a job incurring 40 hours of direct labor? Question 20 l 5 Points The Work in Process Inventory at the end ofthe year has 2 Jobs - #3A and #38, both connsist of bird houses with very similar features. The PriceperUnit of #3A is $5.67 while for #38 it is $6.82. The most plausible explanation for this is G) The company has just hired a whole new sales division Rent on the plant building doubled and the electric bill for the facility has gone up 40% The cost of wood has changed and is significantly higher in Job #33 Both Aand C are correct Question 21 Beginning Inventory + Net purchases - Ending Inventory = COGS A True B FalseQuestion 22 l 5 Points The Cost of Production Report summarizes the cost data for a department as follows: The units the department is accountable for and the disposition of those units. The product costs incurred by the department and the allocation ofthose costs between completed (transferred out} and partially completed units