Question

1. Match to appropriate definition

A. Allocation Base

B. Cost of goods manufactured

C. Cost pool

D. Indirect labor cost

E. Job - Order costing system

F. Just in time manufacturing

G. Manufacturing overhead

H. Overhead Applied

I. Product cost

J. Under applied overhead

____Used by companies that produce individual products or batches of products that are unique.

____involves minimizing inventory levels

____when actual overhead exceeds applied overhead

____the cost of the jobs completed during the period

____includes the cost of production supervisors

____is not expensed until the related product is sold

____consists of the cost of a major activity   

____the product cost other than direct materials and direct labor.

____A characteristic used to develop the overhead allocation rate

____the overhand cost that flows into work in process.

Answer 1

COST POOL used by companies that produced individual products or batches of products that are unique.

JUST IN TIME MANUFACTURING involves minimizing inventory levels.

UNDER APPLIED OVERHEAD when actual overhead exceeds applied overhead.

JOB ORDER COSTING SYSTEM the cost of jobs completed during the period.

MANUFACTURING OVERHEAD includes cost of production supervisor.

COST OF GOODS MANUFACTURED is not expensed until the related product is sold.

PRODUCT COST consists of the cost of major activity.

INDIRECT LABOR COST the product cost other than direct material and direct labor.

ALLOCATION BASE A characteristic used to develop the overhead allocation rate.

OVERHEAD APPLIED the overhead cost that flows into work in progress.

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