Question : 120.Stalk Products has $27,000 of underapplied overhead at the end : 1302694

Economics

120.Stalk Products has $27,000 of underapplied overhead at the end of the year.Management has asked you what the impact on income will be if you prorate the underapplied overhead to the appropriate accounts.What will you tell them?

A.Income will be higher if the underapplied overhead is prorated than if it is closed to cost of goods sold.

B.Income will be lower if the underapplied overhead is prorated than if it is closed to cost of goods sold.

C.Income will be the same regardless of which method is used.

D.The answer depends on the reason that the underapplied exists.

121.If the amount of underapplied overhead is large in amount, it is

A.closed to Finished Goods.

B.apportioned between Raw Materials, Finished Goods, and Work in Process Inventory.

C.apportioned among Work in Process, Finished Goods,and Cost of Goods Sold.

D.closed to Cost of Goods Sold.

122.What is the impact of disposing any overapplied overhead between the appropriate accounts, if the amount is material?

A.It will increase cost of goods sold, decrease income, and reduce inventory.

B.It will reduce cost of goods sold, increase income, and increase inventory.

C.It will reduce cost of goods sold, increase income, and reduce inventory.

D.It will increase cost of goods sold, decrease income and increase inventory.

123.Factory Containers allocates overhead based on machine hours. Estimated overhead costs for the year total $68,000 and the company estimates that it will use 16,000 machine hours during the year. Actual overhead for the year was $62,250 and the company used 15,000 machine hours. If Job J33requires 420 machine hours, how much overhead will be allocated to Job J33?

A.$1,743

B.$1,904

C.$1,634

D.$1,785

124.King Manufacturing estimated manufacturing overhead costs to be $248,000 for the year, incurred manufacturing overhead costs of $251,000, and applied overhead to jobs in the amount of$253,000. How muchisthe amount of overapplied or underapplied overhead?

A.$2,000 overapplied

B.$5,000 overapplied

C.$3,000 underapplied

D.$2,000 underapplied

125.Juarez, Inc. designs and manufactures custom cabinets. The company uses a job-order costing system, and the allocates overhead at $18per direct labor hour. Over or underapplied overhead is not material. During May, Juarez’s transactions included the following:

Direct labor cost incurred at$15an hour $5,400

Manufacturing overhead cost incurred 6,800

Direct materials purchased 11,500

Raw materials inventory, beginning 160

Raw materials inventory, ending 280

Sales 23,000

Selling expenses 2,100

Work in process inventory, beginning 220

Work in process inventory, ending 250

How much is over or underapplied overhead for May?

A.$320 underapplied

B.$1,400 overapplied

C.$6,800 underapplied

D.More information is needed

126.Sandross,Inc. applies overhead based on direct labor cost using a job-order costing system. The company estimated the following annual amounts:

Estimated manufacturing overhead$42,000

Estimated direct labor1,600 hours at $15 per hour

Actual amounts for the year were:

Actual manufacturing overhead$44,000

Actual direct labor1,550 hours at $16 per hour

How much is over or underapplied overhead?

A.$600 underapplied

B.$2,000 underapplied

C.$3,313 underapplied

D.$1,419 underapplied

127.Elm Street Company incurred$440,000 direct labor costs this year.Manufacturing overhead was applied at a predetermined rate of $5.50 per direct labor hour.The average hourly wage rate was $16 per hour. If actual overhead incurred was $160,000, what was the amount of overapplied or underapplied overhead?

A.$151,250 underapplied

B.$8,750 underapplied

C.$27,500 overapplied

D.$151,250overapplied

128.Rivertown Products applied overhead to jobs at a rate of $10.00 per direct labor hour. If the budgeted manufacturing overhead was $660,000 and the actual manufacturing overhead incurred was $630,000, how much under or over applied overhead did Rivertownhave?

A.$30,000 underapplied

B.$30,000 overapplied

C.$60,000 overapplied

D.Information provided is not sufficient to derive the answer

129.Harvard Binding had budgeted direct labor costs of $870,000 andbudgeted manufacturing overhead of $304,500. It allocates manufacturing overhead based on direct labor costs.If actual direct labor costs were $840,000 and actual manufacturing overhead costs were $286,000, identify the true statement.

A.The company applied more overhead than it incurred.

B.The company estimated less overhead than it applied.

C.The company incurred more overhead than it estimated.

D.The company estimated more overhead than it applied.

130.Why is factory overhead ‘applied’ to products and jobs by manufacturing companies?

A.Actual overhead costs can never be accurately determined for jobs.

B.Managers prefer job costs to be exact in amount for budgeting purposes.

C.It allows managers more timely determination of product costs during the manufacturing process.

D.It provides a more accurate cost of the job or products being processed.

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July 1, 2023

1) Members of OSHA's $100,000 club have:

A) invested more than $100,000 in health and safety equipment for employees.

B) purchased health and safety insurance coverage of at least $100,000.

C) received fines of $100,000 or more for safety or health violations.

D) paid more than $100,000 in workers' compensation claims.

2) Workplace safety is a significant issue because approximately ________ employees were injured on the job in 2009.

A) 3,000,000

B) 1,000,000

C) 500,000

D) 250,000

3) According to the doctrine of contributory negligence, employers were:

A) not responsible for an employees' injury when another employee's negligence caused the injury.

B) not liable for an employee's injuries when that employee's own negligence caused the injury.

C) responsible for compensating employees for all work-related illnesses and accidents.

D) not responsible for any employees' injuries under any circumstances.

4) Workers' compensation laws vary by state, but all are built on the theory that:

A) employees' personal health insurance should pay the medical costs of any injuries.

B) work-related accidents are costs of doing business and should be paid for by employers.

C) governments are responsible for paying the medical costs related to an employee's injuries.

D) employers are not responsible for employee injuries resulting from the employee's own negligence.

5) Which of the following is a true statement about workers' compensation?

A) Workers' compensation laws are federally mandated and enforced by OSHA.

B) Non-union firms are not required to carry workers' compensation insurance.

C) Workers' compensation is not mandatory in all U.S. states.

D) Most states had workers' compensation programs by 1911.

6) Workers' compensation:

A) pays only if the worker cannot.

B) is considered a no-fault system.

C) is mandatory in all fifty states.

D) covers employees' medical costs with Medicaid.

7) The primary goal of state workers' compensation laws is best described as:

A) providing a means for injured workers to receive care and income without having to sue.

B) determining the cause of work-related accidents and minimizing future accidents.

C) ensuring that employers are not held responsible for accidents caused by worker negligence.

D) spreading the cost of workplace accidents among all workers in the state.

8) The ________ holds that employers are not held liable for an employee's injuries when the negligence of another employee contributed to or caused the accident.

A) doctrine of contributory negligence

B) fellow-servant rule

C) general duty provision

D) "no-fault" rule

9) Which of the following is most likely true?

A) Workers' compensation is a federal program. OSHA is the organization that helps individual states meet workers' compensation standards.

B) Workers' compensation is a federal program that provides compensation to employees injured on the job. OSHA is a federal program that creates and enforces safety standards in the work place.

C) OSHA is a federal program that creates safety standards for work environments. Workers' compensation programs are created by the individual states to provide compensation for employees injured on the job.

D) OSHA is a federal program that provides compensation for employees injured on the job. Workers' compensation programs are state programs that provide compensation for employees injured on the job.

10) Workers' compensation:

A) replaces the worker's entire income until he/she is able to work again.

B) provides benefits for permanent, but not temporary, impairment.

C) gives survivors burial allowances and income benefits.

D) covers medical expenses up to $100,000.