Chapter 4 book (4.5, 4.6, 4.7)

Question 1

under normal costing, is the amount of manufacturing overhead costs allocated to individual jobs based on the budgeted rate, $40 per direct manufacturing labor hours in this case, multiplied by the actual quantity of the allocated base used for each job

Answer 1

manufacturing overhead allocated
or
manufacturing overhead applied

Question 2

the subsidiary ledger for materials, is used to continuously record the quantity of materials received, issued to jobs, and the inventory balances for each type of material

Answer 2

materials record

Question 3

the allocated amount of indirect costs in an accounting period is less than the actual overhead amount incurred for the period

Answer 3

underallocated indirect costs
or
underapplied (overapplied) indirect costs

Question 4

occur when the allocated amount of indirect costs in an accounting period is greater than the actual overhead amount incurred for the period

Answer 4

overallocated indirect costs
or
underabsorbed (overabsorbed) indirect costs

Question 5

restates all overhead entries in the general ledger and subsidiary ledgers using actual overhead cost rates rather than budgeted overhead cost rates

Answer 5

adjusted allocation rate approach

Question 6

spreads under- or overallocated overhead among ending work-in-process- inventory, finished goods inventory, and cost of goods sold

Answer 6

proration