Question
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
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 |
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