Question 1

Fabric used in the manufacture of baseball jerseys is an example of

Accepted Answer

The answer of Fabric used in the manufacture of baseball...

Question 2

Oil to keep a factory machinery lubricated is an example of

Accepted Answer

The answer of Oil to keep a factory machinery lubricated...

Question 3

The supply of coffee beans at Starbucks is an example of

Accepted Answer

The answer of The supply of coffee beans at Starbucks...

Question 4

After the entry is made to record the overhead applied, if the balance in the overhead account is a credit, more overhead was actually incurred than was recorded in the Work in Process account during the period.

Accepted Answer

If the balance in the overhead account is a credit, more overhead was applied than was actually incurred,

Question 5

Which of the following is an example of direct labor for Toyota Motor Company?

Accepted Answer

Direct labor refers to the employees who are directly involved in the production process, such as assembly line workers who physically work on the product. Fork-lift drivers and line foremen also fall under direct labor as they are involved in the production process. However, the company president is not directly involved in the production process and therefore does not fall under direct labor.

Question 6

Which of the following is an example of direct labor for Dole Food Company?

Accepted Answer

Direct labor refers to the workers who are directly involved in the production process. The canning machine operator is directly involved in processing the fruit, therefore it is an example of direct labor. The other options (A, B, and C) are examples of indirect labor as their work is not directly related to the production process.

Question 7

Overapplied overhead means that not enough overhead cost was charged to products during the production process.

Accepted Answer

Underapplied overhead means that not enough overhead cost was charged to products during the production process.,

Question 8

Which of the following items would least likely be classified as part of direct materials for Dole Food Company?

Accepted Answer

Stainless steel pots are not typically considered as direct materials for the production of food products such as canned pineapple. Direct materials are those that are physically incorporated into the final product, while pots are simply tools used in the production process. Pineapple, sugar, and glass jars, on the other hand, are directly used to make the final product and would be considered direct materials.

Question 9

The journal entry to charge overhead cost to Work in Process Inventory is to debit Work in Process Inventory and credit Manufacturing Overhead Control.

Accepted Answer

This is correct. Overhead costs are indirect costs incurred in the production process that cannot be easily traced to a specific job or product. Therefore, they are allocated to the products or jobs based on an overhead rate calculated using a predetermined allocation base. To charge overhead costs to Work in Process Inventory, we must debit Work in Process Inventory and credit Manufacturing Overhead Control (a subsidiary ledger account).

Question 10

Applied overhead is calculated by dividing the actual activity level of application base by the predetermined overhead rate.

Accepted Answer

Applied overhead is calculated by multiplying the predetermined overhead rate by the actual activity level of application base,

Question 11

Wages of sewing machine operators making baseball jerseys is an example of

Accepted Answer

The answer of Wages of sewing machine operators making baseball...

Question 12

To adjust for underapplied overhead, the journal entry includes a debit to Cost of Goods Sold and a credit to Manufacturing Overhead Control.

Accepted Answer

This is correct, as underapplied overhead means that actual overhead costs were higher than allocated overhead costs. This means that some of the overhead costs were not included in the cost of goods sold, so to adjust for this, the cost of goods sold is debited and the manufacturing overhead control account is credited to increase the allocated overhead costs.

Question 13

The predetermined overhead rate is calculated by dividing budgeted total manufacturing overhead by budgeted activity level of the application base.

Accepted Answer

This is the correct calculation for determining the predetermined overhead rate.

Question 14

A zero balance in the manufacturing overhead account prior to adjusting the Manufacturing Overhead account indicates that actual overhead and applied overhead cost are equal, so that all inventory is reflected at actual cost.

Accepted Answer

A zero balance in the manufacturing overhead account means that the actual overhead and applied overhead costs are equal. This indicates that all inventory is reflected at actual cost, which is true.

Question 15

If the amount of underapplied or overapplied manufacturing overhead is small, most companies will make the entry to close the Manufacturing Overhead account by charging the entire amount to Work in Process.

Accepted Answer

If the amount of underapplied or overapplied manufacturing overhead is small, most companies will make the entire adjustment to Cost of Goods Sold,

Question 16

After the entry is made to record the overhead applied, if the balance in the overhead account is a debit, more overhead was actually incurred than was debited to the Work in Process account during the period.

Accepted Answer

If the balance in the overhead account is a debit, it means more overhead was incurred than was applied to the Work in Process account during the period.

Question 17

Which of the following would most likely be classified as a direct material for a furniture manufacturer?

Accepted Answer

Wood is the primary raw material used by furniture manufacturers for making their products such as chairs, tables, and cabinets. Other materials like glue, screws, and wood cleaner are typically classified as indirect materials, as they are not the primary material used to make the furniture but rather are used to assemble, polish, or maintain it.

Question 18

Aluminum used in the manufacturing of bicycles is an example of

Accepted Answer

The answer of Aluminum used in the manufacturing of bicycles...

Question 19

An application base is the amount of overhead to be allocated to various jobs.

Accepted Answer

An application base is some measure of activity that is related to the products being made,

Question 20

Which of the following items would least likely be classified as part of direct materials for an automobile manufacturer?

Accepted Answer

Screws are typically classified as indirect materials because they are used in the production process but are not a major cost component of the finished product. They are often used in various products and not easily traced to a single product, unlike steel, paint, and tires, which are significant and identifiable components of an automobile.

Quiz 4: Product Costs and Job Order Costing