1
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Question 1 of 10
Points
The data on a materials requisition are entered as debits to the Materials Inventory account.
A. True
B. False
Answer Key: False
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Question 2 of 10
Points
When actual overhead costs incurred are larger than the amount of overhead costs applied to
production, manufacturing overhead is underapplied.
A. True
B. False
Answer Key: True
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Question 3 of 10
Points
Which of the following would be classified as selling costs? (1) marketing research; (2)
depreciation on president’s office facilities; (3) advertising; (4) factory taxes; (5) indirect
materials; (6) machinery maintenance.
A. 1, 3 are selling costs.
B. 1, 2, 3 are selling costs.
C. 3, 5 are selling costs.
,1
D. 3, 6 are selling costs.
E. 1, 2, 3, 4, 5, 6 are selling costs.
Answer Key: A
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Question 4 of 10
Points
Rorry Company uses a job cost system. Overhead was applied to production using a rate of
78 percent of direct labor costs. What is the journal entry when direct labor costs are
$18,000?
A. Dr. Manufacturing Overhead for $14,040 and Cr. Payroll Summary for $14,040
B. Dr. Work in Process Inventory for $14,040 and Cr. Manufacturing Overhead for
$14,040
C. Dr. Work in Process Inventory for $16,380 and Cr. Manufacturing Overhead for
$16,380
D. Dr. Finished Goods Inventory for $16,380 and Cr. Manufacturing Overhead for
$16,380
E. Dr. Finished Goods Inventory for $5,400 and Cr. Manufacturing Overhead for $5,400
Answer Key: B
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Question 5 of 10
Points
The amount of overhead costs applied to production in a given month may be more or less
than the amount of overhead actually incurred in that same month.
A. True
B. False
Answer Key: True
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Question 6 of 10
Points
Indicate the true statement from among the following statements concerning variable
costing.
, 1
A. Inventory valuation on the balance sheet will be the same whether variable costing
or
absorption costing is used.
B. Only direct materials and direct labor are treated as product costs under variable
costing.
C. Net income reported under variable costing will always be higher than net income
reported
10.0/ 10.0
Question 1 of 10
Points
The data on a materials requisition are entered as debits to the Materials Inventory account.
A. True
B. False
Answer Key: False
10.0/ 10.0
Question 2 of 10
Points
When actual overhead costs incurred are larger than the amount of overhead costs applied to
production, manufacturing overhead is underapplied.
A. True
B. False
Answer Key: True
10.0/ 10.0
Question 3 of 10
Points
Which of the following would be classified as selling costs? (1) marketing research; (2)
depreciation on president’s office facilities; (3) advertising; (4) factory taxes; (5) indirect
materials; (6) machinery maintenance.
A. 1, 3 are selling costs.
B. 1, 2, 3 are selling costs.
C. 3, 5 are selling costs.
,1
D. 3, 6 are selling costs.
E. 1, 2, 3, 4, 5, 6 are selling costs.
Answer Key: A
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Question 4 of 10
Points
Rorry Company uses a job cost system. Overhead was applied to production using a rate of
78 percent of direct labor costs. What is the journal entry when direct labor costs are
$18,000?
A. Dr. Manufacturing Overhead for $14,040 and Cr. Payroll Summary for $14,040
B. Dr. Work in Process Inventory for $14,040 and Cr. Manufacturing Overhead for
$14,040
C. Dr. Work in Process Inventory for $16,380 and Cr. Manufacturing Overhead for
$16,380
D. Dr. Finished Goods Inventory for $16,380 and Cr. Manufacturing Overhead for
$16,380
E. Dr. Finished Goods Inventory for $5,400 and Cr. Manufacturing Overhead for $5,400
Answer Key: B
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Question 5 of 10
Points
The amount of overhead costs applied to production in a given month may be more or less
than the amount of overhead actually incurred in that same month.
A. True
B. False
Answer Key: True
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Question 6 of 10
Points
Indicate the true statement from among the following statements concerning variable
costing.
, 1
A. Inventory valuation on the balance sheet will be the same whether variable costing
or
absorption costing is used.
B. Only direct materials and direct labor are treated as product costs under variable
costing.
C. Net income reported under variable costing will always be higher than net income
reported
