Accounting 202 - Chapter 3.3
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Overhead costs are the costs that are incurred by a company other than direct materials and labor. In the previous class we covered how to properly allocate overhead manufacturing costs in financial statements. Take up the simple quiz below to test if you understood the aspects we covered today. Good luck!
- 1.How do you calculate the predetermined manufacturing overhead rate used to allocate manufacturing overhead costs?
- A.
. By dividing the total estimated manufacturing overhead costs by the total estimated amount of the allocation base
- B.
By dividing the total estimated amount of the allocation base by the total estimated manufacturing overhead costs
- C.
By dividing the total estimated manufacturing overhead costs by the total actual amount of the allocation base
- D.
By multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base
- 2.Manufacturing overhead would include:
- A.
Indirect labor costs only
- B.
All manufacturing costs except direct materials and direct labor
- C.
All manufacturing costs
- D.
Indirect materials only
- 3.If a job consists of a batch of identical units, managers find the unit cost by:
- A.
Tracing direct materials to each unit
- B.
Multiplying the total job cost by the number of units in the job
- C.
Tracing direct labor to each unit
- D.
Dividing the total job cost by the number of units in the job
- 4.Management can use job cost information for each of the following EXCEPT:
- A.
Determining cost of goods sold
- B.
Determining the profitability of different jobs
- C.
Bidding on custom jobs
- D.
All of the listed choices are possible uses of job cost information
- 5.The difference between the sales price and the job cost is:
- A.
Cost of goods sold
- B.
Gross profit
- C.
Net income
- D.
Operating income
- 6.
- A.
Cover operating expenses
- B.
Generate a profit
- C.
Determine the price to charge for the job
- D.
Do all of the above
- 7.Underallocated manufacturing overhead results when
- A.
Production is greater than last year
- B.
Actual overhead is greater than expected
- C.
Estimated overhead is greater than actual overhead
- D.
Actual overhead is greater than allocated overhead
- 8.Overallocated manufacturing overhead results when
- A.
Production is less than last year
- B.
Actual overhead is less than allocated overhead
- C.
Estimated overhead is less than actual overhead
- D.
Actual overhead is less than expected
- 9.If manufacturing overhead has been overallocated during the period, then
- A.
The jobs produced during the period have been undercosted
- B.
The jobs produced during the period have been costed correctly
- C.
The jobs produced during the period have been overcosted
- D.
None of the above occur
- 10.If manufacturing overhead has been overallocated during the period, and most of the jobs produced have been sold, then:
- A.
Cost of goods sold should be decreased
- B.
Cost of goods sold should be increased
- C.
Finished goods inventory should be increased
- D.
Work in process inventory should be decreased
- 11.If manufacturing overhead has been underallocated during the period, then
- A.
The jobs produced during the period have been undercosted
- B.
The jobs produced during the period have been costed correctly
- C.
The jobs produced during the period have been overcosted
- D.
None of the above occur
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