Reference no: EM13863635
1. A credit balance in the Manufacturing Overhead account at the end of an interim month means that:
overhead has been overapplied.
cost of goods sold should be debited on the monthly income statement.
corrective action by management is necessary.
2. The balance should be reported as a prepaid expense in the monthly balance sheet.
In a job order cost system, which of the following accounts is not a control account?
Factory Labor.
Manufacturing Overhead.
Finished Goods Inventory.
Raw Materials Inventory.
3. A job order cost system would most likely be used by a(n):
specialty printing company.
paint manufacturer.
cement manufacturer.
automobile manufacturer.
4. The formula for computing a predetermined overhead rate is:
estimated annual overhead costs ÷ estimated annual operating activity.
actual annual overhead costs ÷ estimated annual operating activity.
estimated annual overhead costs ÷ actual annual operating activity.
actual annual overhead costs ÷ actual annual operating activity.
5. An example of a period cost, as opposed to a product cost, is:
depreciation on the factory building.
wages of factory workers.
factory utilities.
salesperson's commissions.
6. A production cost report contains sections for:
units to be accounted for.
unit costs.
costs accounted for.
All three of the other choices are correct.
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: A credit balance in the Manufacturing Overhead account at the end of an interim month means that: The balance should be reported as a prepaid expense in the monthly balance sheet. The formula for computing a predetermined overhead rate is: A producti..
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