false

false

false

true

true

true

true

FALSE

false

false

false

true

false

shipbuilding

shipbuilding

### A process cost system is employed in those situations where:

where manufacturing involves a single, homogeneous product that flows evenly through the
production process on a continuous basis.

time ticket

### Which of the following is the correct formula to compute the predetermined overhead Rate?

Estimated total manufacturing overhead costs divided by estimated total units in the allocation
base.

### Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?

direct labor hours

### Which of the following statements is true?

Statements I, II, and III are all true.

### In a job-order costing system, the amount of overhead cost that has been applied to a job that remains incomplete at the end of a period:

is part of the ending balance of the Work in Process inventory account.

50%

\$6,319

\$4,571

### Karvel Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. For the month of August, Karvel estimated total manufacturing overhead costs at \$300,000 and total machine-hours at 75,000 hours. Actual results for the period were manufacturing overhead costs of \$290,000 and 76,000 machine-hours. As a result, Karvel would have:

applied more overhead to jobs than the actual amount of overhead cost for the year.

### Harrell Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the year the company estimated its total manufacturing overhead cost at \$400,000 and its direct labor-hours at 100,000 hours. The actual overhead cost incurred during the year was \$350,000 and the actual direct labor-hours incurred o jobs during the year was 90,000 hours. The manufacturing overhead for the year would be:

\$10,000 overapplied

### At the beginning of the year, manufacturing overhead for the year was estimated to be \$702,450. A the end of the year, actual direct labor-hours for the year were 33,100 hours, the actual manufactur overhead for the year was \$697,450, and manufacturing overhead for the year was overapplied by \$40,680. If the predetermined overhead rate is based on direct labor-hours, then the estimated direc labor-hours at the beginning of the year used in the predetermined overhead rate must have been:

31,500 direct labor-hours

. \$357,960

### Crimp Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 15,000 hours and the total estimated manufacturing overhead was \$258,000. At the end of the year, actual direct labor-hours for the year were 13,100 hours and the actual manufacturing overhead for the year was \$253,000. Overhead at the end of the year was:

\$27,680 underapplied

\$17.70

Example: