quiz 3 (chapter 2 & 3)

Question 1

1. The unit cost of a job is calculated by dividing the total product costs of that job and units sold.
   A. True B. False

Answer 1

False

Question 2

2. Job order costing is most appropriate for homogeneous products like ketchup.
   A. True B. False

Answer 2

False

Question 3

3. If overhead costs applied for a period are greater than the actual overhead costs then overhead costs would be considered to be overapplied.
   A. True B. False

Answer 3

True

Question 4

5. At the beginning of the year, a manufacturing company estimates the following: manufacturing overhead costs will be $25,000, direct labor cost $20,000, direct labor hours 16,000, machine hours 5,000. At the end of the year, the actual results were manufacturing overhead of $26,000, direct labor cost of $21,000, direct labor hours of 17,000, machine hours of 5,500. Their predetermined overhead rate based on machine hours will be:

Answer 4

$5.00 per machine hour

Question 5

6. If the information in question 5 is used again and the company uses direct labor hours as their allocation base then

Answer 5

Overhead is overapplied