Question :
31. Benjamin Products uses job order costing and assigns overhead to : 1291676
31. Benjamin Products uses job order costing and assigns overhead to specific jobs using direct labor hours. During the month of June, a total of 1,800 direct labor hours at a cost of $16 per hour were incurred for all jobs. Actual overhead costs for the month totaled $9,000. If a specific job required 36 direct labor hours of work, how much overhead should be applied to that job? A. $179.20B. $212.80C. $180.00D. $348.00
32. Which of the following statements regarding plantwide overhead rates is true? A. Plantwide overhead rates based on the direct labor hours or machine time works well for all company.B. Plantwide overhead rates must use machine hours as their cost driver.C. As the number of diverse products a company makes increases, the likelihood that a company will replace a plantwide overhead rate with a departmental overhead rate increases.D. Plantwide overhead rates are usually more costly to prepare than a departmental overhead rate.
33. When using job-order costing, which of the following costs is least likely to be known in a timely manner for decision-making purposes? A. Direct labor costsB. Administrative salariesC. Direct materials costsD. Manufacturing overhead costs
34. Why do many managers desire to use a predetermined overhead rate instead of an actual overhead rate? A. Because it is impossible to ever know actual overhead costs.B. Because predetermined overhead rates are more accurate than actual overhead rates.C. Because actual overhead amounts are often not known in a timely enough manner to make decisions.D. Because the use of predetermined overhead rates will always result in lower product prices.
35. Which of the following is not true regarding predetermined overhead rates? A. They are useful in estimating product costs before actual overhead amounts are known with certainty.B. They can normalize seasonal and random fluctuations in overhead costs so that product costs will be consistent throughout the year.C. With their use, it is no longer necessary to be able to identify a cost driver.D. With their use, too much or too little overhead may end up being allocated to a product or job.
36. The formula for calculating the predetermined overhead rate for a cost pool is: A. Actual overhead for the cost pool ¸ Estimated units of the cost driverB. Estimated overhead for the cost pool ¸ Actual units of the cost driverC. Actual overhead for the cost pool ¸ Actual units of the cost driverD. Estimated overhead for the cost pool ¸ Estimated units of the cost driver
37. The formula for calculating the amount of applied overhead to a product is: A. Predetermined overhead rate ´ Estimated units of cost driverB. Predetermined overhead rate ´ Actual overhead costsC. Predetermined overhead rate ´ Actual units of cost driverD. Predetermined overhead rate ´ Estimated overhead costs
38. Aronson & Associates LLPAronson & Associates LLP, an accounting firm, assigns overhead to clients based on direct labor hours. The following information is available for the month of March:
Estimated direct labor hours
8,000 hours
Estimated overhead costs
$16,000
Actual direct labor hours
8,100 hours
Actual overhead costs
$16,190
Refer to the Aronson & Associates LLP information above. The predetermined overhead rate for the month of March is: A. $2.00 per direct labor hourB. $1.50 per direct labor hourC. $1.95 per direct labor hourD. $1.90 per direct labor hour
39. Aronson & Associates LLPAronson & Associates LLP, an accounting firm, assigns overhead to clients based on direct labor hours. The following information is available for the month of March:
Estimated direct labor hours
8,000 hours
Estimated overhead costs
$16,000
Actual direct labor hours
8,100 hours
Actual overhead costs
$16,190
Refer to the Aronson & Associates LLP information above. The amount of applied overhead for March will be: A. $8,000B. $16,200C. $16,190D. $16,000
40. Aronson & Associates LLPAronson & Associates LLP, an accounting firm, assigns overhead to clients based on direct labor hours. The following information is available for the month of March:
Estimated direct labor hours
8,000 hours
Estimated overhead costs
$16,000
Actual direct labor hours
8,100 hours
Actual overhead costs
$16,190
Refer to the Aronson & Associates LLP information above. By how much was overhead over- or underapplied for the month of March? A. $10 overappliedB. $190 overappliedC. $10 underappliedD. $190 underapplied
