Question

A job-order costing system that relies on normal costing will:

Multiple Choice

• Assign actual direct materials and direct labor costs to jobs.

• Apply overhead cost to jobs by multiplying an actual overhead rate by the estimated amount of the allocation base incurred by the jobs.

• Apply overhead cost to jobs by multiplying an actual overhead rate by the actual amount of the allocation base incurred by the jobs.

• Apply overhead cost to jobs by multiplying a predetermined overhead rate by the estimated amount of the allocation base incurred by the jobs.

• A predetermined overhead rate includes:

• Multiple Choice

• estimated total manufacturing overhead cost in the numerator.

• estimated total manufacturing overhead cost in the denominator.

• only the variable portion of the estimated manufacturing overhead cost in the numerator.

• only the fixed portion of the estimated manufacturing overhead cost in the numerator.

• A document that specifies the type and quantity of materials to be drawn from the storeroom and identifies the job that will be charged for the cost of the materials is called a:

  Multiple Choice

• Materials requisition form.

• Job cost sheet.

• Bill of materials.

• Storeroom withdrawal ticket.

• A document that lists the quantity of each type of direct material needed to complete a unit of product is called a:

  Multiple Choice

• Job cost sheet.

• Materials use ticket.

• Bill of materials.

• Normal cost sheet.

• Overhead application refers to applying:

  Multiple Choice

• Direct material costs to jobs.

• Manufacturing overhead costs to jobs.

• Nonmanufacturing overhead costs to jobs.

• Direct labor costs to jobs.

Answer 1

Solutions:

A job-order costing system that relies on normal costing will:

Answer: Apply overhead cost to jobs by multiplying a predetermined overhead rate by the estimated amount of the allocation base incurred by the jobs.

A predetermined overhead rate includes:

Answer: estimated total manufacturing overhead cost in the numerator.

A document that specifies the type and quantity of materials to be drawn from the storeroom and identifies the job that will be charged for the cost of the materials is called a:

Answer: Materials requisition form.

A document that lists the quantity of each type of direct material needed to complete a unit of product is called a:

Answer: Bill of materials.

Overhead application refers to applying:

Answer: Manufacturing overhead costs to jobs.

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