Rams Company had the following information: Budgeted factory overhead $90,000 Actual factory overhead $107,000 Budgeted direct labor hours 100,000 Actual direct labor hours 107,000 Assume direct labor costs are the cost driver of factory overhead costs. The budgeted factory overhead rate is ________.

Question 2 options:

A	100 percent of direct labor costs
B	81 percent of direct labor costs
C	90 percent of direct labor costs
D	105 percent of direct labor costs

The cost driver chosen for applying factory overhead costs should be the cost driver that ________.

Question 5 options:

a	incurs the least administrative costs
b	is easiest to understand
c	is easiest to calculate
d	causes most of the overhead costs

In process costing, the journal entry to transfer completed units from Department A to Department B would include a ________.

Question 11 options:

a	debit to Work-in-Process Inventory, Department A
b	credit to Work-in-Process Inventory, Department B
c	credit to Direct Materials Inventory
d	debit to Work-in-Process Inventory, Department B

Which of the following statements concerning job-order costing is TRUE?

Question 12 options:

a	Job-order costing applies costs to specific jobs which may consist of a single unit or a few similar units.
b	Job-order costing deals with great masses of similar items.
c	Job-order costing is not a common system used in product costing.
d	Job-order costing is used by the chemical industry.

In job-order costing, the journal entry to record the application of factory overhead costs to jobs includes a debit to ________.

Question 13 options:

a	Factory Department Overhead Applied
b	Finished Goods Inventory
c	Work-in-process Inventory
d	Factory Department Overhead Control

When public accounting firms apply indirect costs to audit engagements, they use ________ or ________ as the cost driver.

Question 19 options:

a	traveling costs; hours of clerical assistance
b	hours of equipment use; hours of computer use
c	direct labor cost; direct labor hours
d	direct labor cost; equipment usage