ACCT 241 Week 2 Assignment Help 1

ACCT 241 Week 2 Assignment Help 1 | American University 

1.

Required information

In this learning objective we overview job-order costing and explain the four-step process to compute a predetermined overhead rate. Remember that it is "predetermined," that is, based on estimates and determined before costs are incurred.

Knowledge Check 01

The direct materials required to manufacture each unit of product are listed on a ________.

•        bill of materials

•        materials requisition form

•        materials ticket

•        job order cost sheet

2.

Required information

In this learning objective we overview job-order costing and explain the four-step process to compute a predetermined overhead rate. Remember that it is "predetermined," that is, based on estimates and determined before costs are incurred.

Knowledge Check 01

In the cost formula (Y = a + bX) that is used to estimate the total manufacturing overhead cost for a given period, the letter “a” refers to the estimated ________.

•        total manufacturing overhead cost

•        total fixed manufacturing overhead cost

•        variable manufacturing overhead cost per unit of the allocation base

•        total amount of the allocation base

3.

Required information

In this learning objective we overview job-order costing and explain the four-step process to compute a predetermined overhead rate. Remember that it is "predetermined," that is, based on estimates and determined before costs are incurred.

Knowledge Check 01

The management of Blue Ocean Company estimates that 50,000 machine-hours will be required to support the production planned for the year. It also estimates $300,000 of total fixed manufacturing overhead cost for the coming year and $4 of variable manufacturing overhead cost per machine-hour. What is the predetermined overhead rate?

·         $6.00 per machine hour.

·         $8.00 per machine hour.

·         $10.00 per machine hour.

·         $12.50 per machine hour.

4.

Required information

In this learning objective we overview job-order costing and explain the four-step process to compute a predetermined overhead rate. Remember that it is "predetermined," that is, based on estimates and determined before costs are incurred.

Knowledge Check 01

The direct materials required to manufacture each unit of product are listed on a ________.

·         bill of materials

·         materials requisition form

·         materials ticket

·         job order cost sheet

5.

Required information

In this learning objective we overview job-order costing and explain the four-step process to compute a predetermined overhead rate. Remember that it is "predetermined," that is, based on estimates and determined before costs are incurred.

Knowledge Check 01

In the cost formula (Y = a + bX) that is used to estimate the total manufacturing overhead cost for a given period, the letter “a” refers to the estimated ________.

·         total manufacturing overhead cost

·         total fixed manufacturing overhead cost

·         variable manufacturing overhead cost per unit of the allocation base

·         total amount of the allocation base

6.

Required information

In this learning objective we overview job-order costing and explain the four-step process to compute a predetermined overhead rate. Remember that it is "predetermined," that is, based on estimates and determined before costs are incurred.

Knowledge Check 01

The management of Blue Ocean Company estimates that 50,000 machine-hours will be required to support the production planned for the year. It also estimates $300,000 of total fixed manufacturing overhead cost for the coming year and $4 of variable manufacturing overhead cost per machine-hour. What is the predetermined overhead rate?

• $6.00 per machine hour.

• $8.00 per machine hour.

• $10.00 per machine hour. 

• $12.50 per machine hour.

7.

Required information

In this learning objective we explain how to apply overhead cost to jobs using a predetermined overhead rate. Overhead is applied to jobs by multiplying the predetermined overhead rate by the actual amount of the allocation base recorded for the job.

Knowledge Check 01

Spartan Corporation estimates that it will incur $200,000 of total manufacturing overhead cost at an estimated activity level of 10,000 direct labor-hours. What is the amount of manufacturing overhead that would be applied to a job that required 200 direct labor-hours?

·         $2,000

·         $4,000

·         $6,000

·         $10,000

8.

Required information

In this learning objective we explain how to apply overhead cost to jobs using a predetermined overhead rate. Overhead is applied to jobs by multiplying the predetermined overhead rate by the actual amount of the allocation base recorded for the job.

Knowledge Check 01

A normal cost system applies overhead to jobs ________.

·         by multiplying a predetermined overhead rate by the estimated amount of the allocation base incurred by the job

·         by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job

·         using the actual amount of overhead caused by each job

·         using the normal amount of overhead caused by each job

9.

Required information

In this learning objective we explain how to apply overhead cost to jobs using a predetermined overhead rate. Overhead is applied to jobs by multiplying the predetermined overhead rate by the actual amount of the allocation base recorded for the job.

Knowledge Check 01

Spartan Corporation estimates that it will incur $200,000 of total manufacturing overhead cost at an estimated activity level of 10,000 direct labor-hours. What is the amount of manufacturing overhead that would be applied to a job that required 200 direct labor-hours?

·         $2,000

·         $4,000

·         $6,000

·         $10,000

10.

Required information

In this learning objective we explain how to apply overhead cost to jobs using a predetermined overhead rate. Overhead is applied to jobs by multiplying the predetermined overhead rate by the actual amount of the allocation base recorded for the job.

Knowledge Check 01

A normal cost system applies overhead to jobs ________.

·         by multiplying a predetermined overhead rate by the estimated amount of the allocation base incurred by the job

·         by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job

·         using the actual amount of overhead caused by each job

·         using the normal amount of overhead caused by each job

11.

Required information

In this learning objective we compute the total cost and average cost per unit of a job. After adding the totals for direct materials, direct labor, and manufacturing overhead in the Cost Summary section of the job cost sheet to obtain the total cost for the job, the total product cost is divided by the number of units to obtain the unit product cost. To improve job cost accuracy, the allocation base in the predetermined overhead rate should drive the overhead cost.

Knowledge Check 01

Wilson Products uses a plantwide predetermined overhead rate of $10 per direct labor-hour. Direct material and direct labor associated with Job X23 are $4,000 and $1,200 respectively.  If Job X23 used 100 direct labor-hours, what is the total cost assigned to this job?

·         $5,000

·         $5,200

·         $6,000

·         $6,200

Knowledge Check 02

Wilson Products uses a plantwide predetermined overhead rate of $10 per direct labor-hour. Direct material and direct labor associated with Job X23 are $4,000 and $1,200 respectively.  If Job X23 used 100 direct labor-hours to produce 50 audio controllers, what is this job’s unit product cost (per audio controller)?

·         $52

·         $62

·         $100

·         $124

12. Required information

In this learning objective we compute the total cost and average cost per unit of a job. After adding the totals for direct materials, direct labor, and manufacturing overhead in the Cost Summary section of the job cost sheet to obtain the total cost for the job, the total product cost is divided by the number of units to obtain the unit product cost. To improve job cost accuracy, the allocation base in the predetermined overhead rate should drive the overhead cost.

Knowledge Check 01

Companies can improve job cost accuracy by using ________.

·         a plantwide overhead rate

·         direct-labor hours to apply overhead

·         multiple predetermined overhead rates

·         number of units in the job to apply overhead

13.

Required information

In this learning objective we compute the total cost and average cost per unit of a job. After adding the totals for direct materials, direct labor, and manufacturing overhead in the Cost Summary section of the job cost sheet to obtain the total cost for the job, the total product cost is divided by the number of units to obtain the unit product cost. To improve job cost accuracy, the allocation base in the predetermined overhead rate should drive the overhead cost.

Knowledge Check 01

Wilson Products uses a plantwide predetermined overhead rate of $10 per direct labor-hour. Direct material and direct labor associated with Job X23 are $4,000 and $1,200 respectively.  If Job X23 used 100 direct labor-hours, what is the total cost assigned to this job?

·         $5,000

·         $5,200

·         $6,000

·         $6,200

Knowledge Check 02

Wilson Products uses a plantwide predetermined overhead rate of $10 per direct labor-hour. Direct material and direct labor associated with Job X23 are $4,000 and $1,200 respectively.  If Job X23 used 100 direct labor-hours to produce 50 audio controllers, what is this job’s unit product cost (per audio controller)?

·         $52

·         $62

·         $100

·         $124

14.       Required information

In this learning objective we compute the total cost and average cost per unit of a job. After adding the totals for direct materials, direct labor, and manufacturing overhead in the Cost Summary section of the job cost sheet to obtain the total cost for the job, the total product cost is divided by the number of units to obtain the unit product cost. To improve job cost accuracy, the allocation base in the predetermined overhead rate should drive the overhead cost.

Knowledge Check 01

Companies can improve job cost accuracy by using ________.

·         a plantwide overhead rate

·         direct-labor hours to apply overhead

·         multiple predetermined overhead rates

·         number of units in the job to apply overhead

15.

Required information

In this learning objective we compute the total cost and the unit product cost of a job using multiple predetermined overhead rates. We address the fact that the amount of overhead applied to all jobs during a period typically differs from the actual amount of overhead costs incurred during the period and address how that situation affects the income statement. We also explain how the job cost sheets form a subsidiary ledger, which is an underlying set of financial records relating to the amounts reported in the inventory accounts on the balance sheet.

Mansfield, Inc., has two production departments, Assembly and Packaging. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The predetermined overhead rate in the Assembly Department is based on machine hours (MHs) and it is based on direct labor-hours (DLHs) in the Packaging Department. At the beginning of the year, the company made the following estimates:

Knowledge Check 01

What is the estimated total manufacturing overhead in the Assembly Department?

•        $595,200

•        $651,600

•        $809,000

•        $1,246,700

Knowledge Check 02

What is the predetermined overhead rate for the Packing Department?

·         $8.70 per DLH

·         $9.61 per DLH

·         $10.51 per DLH

·         $18.28 per DLH

16.

Required information

In this learning objective we compute the total cost and the unit product cost of a job using multiple predetermined overhead rates. We address the fact that the amount of overhead applied to all jobs during a period typically differs from the actual amount of overhead costs incurred during the period and address how that situation affects the income statement. We also explain how the job cost sheets form a subsidiary ledger, which is an underlying set of financial records relating to the amounts reported in the inventory accounts on the balance sheet.

Knowledge Check 01

What is the term used when a company applies less overhead to production than it actually incurs?

•        Misapplied

•        Overapplied

•        Unadjusted

•        Underapplied

Knowledge Check 02

The adjustment for overapplied overhead ________.

·         decreases cost of goods sold and decreases net operating income.

·         decreases cost of goods sold and increases net operating income.

·         increases cost of goods sold and decreases net operating income.

·         increases cost of goods sold and increases net operating income.

Knowledge Check 03

When all of a company’s job cost sheets are viewed collectively they form what is known as a ________.

•        general ledger

•        inventory

•        job-order costing system

•        subsidiary ledger

17.

Required information

In this learning objective we compute the total cost and the unit product cost of a job using multiple predetermined overhead rates. We address the fact that the amount of overhead applied to all jobs during a period typically differs from the actual amount of overhead costs incurred during the period and address how that situation affects the income statement. We also explain how the job cost sheets form a subsidiary ledger, which is an underlying set of financial records relating to the amounts reported in the inventory accounts on the balance sheet.

Mansfield, Inc., has two production departments, Assembly and Packaging. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The predetermined overhead rate in the Assembly Department is based on machine hours (MHs) and it is based on direct labor-hours (DLHs) in the Packaging Department. At the beginning of the year, the company made the following estimates:

Knowledge Check 01

What is the estimated total manufacturing overhead in the Assembly Department?

·         $595,200

·         $651,600

·         $809,000

·         $1,246,700

Knowledge Check 02

What is the predetermined overhead rate for the Packing Department?

•        $8.70 per DLH

•        $9.61 per DLH

•        $10.51 per DLH

•        $18.28 per DLH

18.

Required information

In this learning objective we compute the total cost and the unit product cost of a job using multiple predetermined overhead rates. We address the fact that the amount of overhead applied to all jobs during a period typically differs from the actual amount of overhead costs incurred during the period and address how that situation affects the income statement. We also explain how the job cost sheets form a subsidiary ledger, which is an underlying set of financial records relating to the amounts reported in the inventory accounts on the balance sheet.

Knowledge Check 01

What is the term used when a company applies less overhead to production than it actually incurs?

•        Misapplied

•        Overapplied

•        Unadjusted

•        Underapplied

Knowledge Check 02

The adjustment for overapplied overhead ________.

•        decreases cost of goods sold and decreases net operating income.

•        decreases cost of goods sold and increases net operating income.

•        increases cost of goods sold and decreases net operating income.

•        increases cost of goods sold and increases net operating income.

Knowledge Check 03

When all of a company’s job cost sheets are viewed collectively they form what is known as a ________.

·         general ledger

·         inventory

·         job-order costing system

·         subsidiary ledger

19.

Required information

In this learning objective we contrast traditional absorption costing with an alternative approach called activity-based absorption costing. Activity-based absorption costing assigns all manufacturing overhead costs to products based on the activities performed to make those products. We explain how this approach is used to allocate the company’s manufacturing overhead across the two products.

Knowledge Check 01

What type of predetermined overhead rate is used in activity-based absorption costing?

•        Multiple

•        A single

Knowledge Check 02

An activity measure is like a(n) ________.

1.      allocation base

2.      predetermined overhead rate

Knowledge Check 03

Design work and engineering changes are examples of ________.

•        batch-level activities

•        product-level activities

20.

Required information

In this learning objective we contrast traditional absorption costing with an alternative approach called activity-based absorption costing. Activity-based absorption costing assigns all manufacturing overhead costs to products based on the activities performed to make those products. We explain how this approach is used to allocate the company’s manufacturing overhead across the two products.

Simmons, Inc.’s traditional costing system uses a plantwide predetermined overhead rate based on direct labor-hours (DLHs). The company’s estimated total manufacturing overhead is $1,632,986 and estimated total direct labor-hours for the year is 30,220. Data about its only two products, A and B, as well as data pertaining to its proposed activity-based absorption costing system appears below.

Knowledge Check 01

When manufacturing overhead is applied to each unit of product B, what is the activity rate that will be used for the setting up machines (setup) activity cost pool?

•        $18.26

•        $223.00

•        $538.77

•        $660.06

21.

Required information

In this learning objective we contrast traditional absorption costing with an alternative approach called activity-based absorption costing. Activity-based absorption costing assigns all manufacturing overhead costs to products based on the activities performed to make those products. We explain how this approach is used to allocate the company’s manufacturing overhead across the two products.

Knowledge Check 01

What type of predetermined overhead rate is used in activity-based absorption costing?

•        Multiple

•        A single

Knowledge Check 02

An activity measure is like a(n) ________.

·         allocation base

·         predetermined overhead rate

Knowledge Check 03

Design work and engineering changes are examples of ________.

·         batch-level activities

·         product-level activities

22.

Required information

In this learning objective we contrast traditional absorption costing with an alternative approach called activity-based absorption costing. Activity-based absorption costing assigns all manufacturing overhead costs to products based on the activities performed to make those products. We explain how this approach is used to allocate the company’s manufacturing overhead across the two products.

Simmons, Inc.’s traditional costing system uses a plantwide predetermined overhead rate based on direct labor-hours (DLHs). The company’s estimated total manufacturing overhead is $1,632,986 and estimated total direct labor-hours for the year is 30,220. Data about its only two products, A and B, as well as data pertaining to its proposed activity-based absorption costing system appears below.

Knowledge Check 01

When manufacturing overhead is applied to each unit of product B, what is the activity rate that will be used for the setting up machines (setup) activity cost pool?

•        $18.26

•        $223.00

•        $538.77

•        $660.06