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z z z z z z z z z
ManagerialzAccounting,z16ez(Garrison)
Chapterz2 Job-OrderzCosting:zCalculatingzUnitzProductzCosts
1) Azcostzdriverziszazfactor,zsuchzaszmachine-hours,zbedszoccupied,zcomputerztime,zorzflight-
zhours,zthatzcauseszdirectzcosts.
2) Job-
orderzcostingzsystemszoftenzusezallocationzbaseszthatzdoznotzreflectzhowzjobszactuallyzusezoverhead
zresources.
3) Anzemployeeztimezticketziszanzhour-by-
hourzsummaryzofzthezemployee'szactivitieszthroughoutzthezday.
4) Thezformulazforzcomputingzthezpredeterminedzoverheadzratezis:
Predeterminedzoverheadzratez=zEstimatedztotalzmanufacturingzoverheadzcostz÷zEstimatedztotalzamo
untzofzthezallocationzbase
5) Generallyzspeaking,zwhenzgoingzthroughzthezprocesszofzcomputingzazpredeterminedzoverheadzra
te,zthezestimatedztotalzmanufacturingzoverheadzcostziszdeterminedzbeforezestimatingzthezamountzofzt
hezallocationzbase.
6) Ifzazjobzisznotzcompletedzatzyearzend,zthenznozmanufacturingzoverheadzcostzwouldzbezappliedztozth
atzjobzwhenzazpredeterminedzoverheadzrateziszused.
7) Actualzoverheadzcostszareznotzassignedztozjobszinzazjobzcostingzsystem.
8) Thezamountzofzoverheadzappliedztozazparticularzjobzequalszthezactualzamountzofzoverheadzca
usedzbyzthezjob.
9) Ifzthezoverheadzrateziszcomputedzannuallyzbasedzonzthezactualzcostszandzactivityzforzthezyear,zthez
manufacturingzoverheadzassignedztozanyzparticularzjobzcanzbezcomputedzaszsoonzaszthezjobziszcomp
leted.
10) Jobzcostzsheetszcontainzentrieszforzactualzdirectzmaterial,zactualzdirectzlabor,zandzactualzm
anufacturingzoverheadzcostzincurredzinzcompletingzazjob.
11) Inzazjob-
orderzcostzsystem,zindirectzlaborziszassignedztozazjobzusingzinformationzfromzthezemployeeztim
ezticket.
12) Ifzthezallocationzbasezinzthezpredeterminedzoverheadzratezdoesznotzdrivezoverheadzcosts,zitzw
illzneverthelesszprovidezreasonablyzaccuratezunitzproductzcostszbecausezofzthezaveragingzproces
s.
13) Azjobzcostzsheetziszusedztozrecordzhowzmuchzazcustomerzpayszforzthezjobzoncezthezjobziszco
mpleted.
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14) Inzazjob-
orderzcostingzsystem,zcostszareztracedztozindividualzunitszofzproduct.zThezsumztotalzofzsuchztracedzco
stsziszcalledzthezunitzproductzcost.
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15) Thezfactzthatzonezdepartmentzmayzbezlaborzintensivezwhilezanotherzdepartmentziszmachinezin
tensivezexplainszinzpartzwhyzmultiplezpredeterminedzoverheadzrateszarezoftenzusedzinzlargerzcom
panies.
16) Azcompanyzwillzimprovezjobzcostzaccuracyzbyzusingzmultiplezoverheadzrateszevenzifzitzcannotzid
entifyzmorezthanzonezoverheadzcostzdriver.
17) Thezappealzofzusingzmultiplezdepartmentalzoverheadzratesziszthatztheyzpresumablyzprovidezazm
orezaccuratezaccountingzofzthezcostszcausedzbyzjobs.
18) Thezcostszattachedztozproductszthatzhaveznotzbeenzsoldzarezincludedzinzendingzinventoryzonzth
ezbalancezsheet.
19) Inzabsorptionzcosting,znonmanufacturingzcostszarezassignedztozunitszofzproduct.
20) Anzemployeeztimezticketziszanzhour-by-
hourzsummaryzofzthezemployee'szactivitieszthroughoutzthezday.
21) Azbillzofzmaterialsziszazdocumentzthatzlistsztheztypezandzquantityzofzeachztypezofzdirectzm
aterialzneededztozcompletezazunitzofzproduct.
22) Mostzcountrieszrequirezsomezformzofzabsorptionzcostingzforzexternalzreports.
23) Inzazjob-orderzcostingzsystemzthatziszbasedzonzmachine-
hours,zwhichzofzthezfollowingzformulasziszcorrect?
A) Predeterminedzoverheadzratez=zActualzmanufacturingzoverheadz÷zActualzmachine-hours
B) Predeterminedzoverheadzratez=zActualzmanufacturingzoverheadz÷zEstimatedzmachine-hours
C) Predeterminedzoverheadzratez=zEstimatedzmanufacturingzoverheadz÷zEstimatedzmachine-
zhours
D) Predeterminedzoverheadzratez=zEstimatedzmanufacturingzoverheadz÷zActualzmachine-hours
24) Whichzofzthezfollowingziszthezcorrectzformulaztozcomputezthezpredeterminedzoverheadzrate?
A) Predeterminedzoverheadzratez=zEstimatedztotalzunitszinzthezallocationzbasez÷zEstimatedztotalzm
anufacturingzoverheadzcosts
B) Predeterminedzoverheadzratez=zEstimatedztotalzmanufacturingzoverheadzcostsz÷zEstimatedzt
otalzunitszinzthezallocationzbase
C) Predeterminedzoverheadzratez=zActualztotalzmanufacturingzoverheadzcostsz÷zEstimatedztotalzu
nitszinzthezallocationzbase
D) Predeterminedzoverheadzratez=zEstimatedztotalzmanufacturingzoverheadzcostsz÷zActualztotalzu
nitszinzthezallocationzbase.
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25) Assigningzmanufacturingzoverheadztozazspecificzjobziszcomplicatedzbyzallzofzthezbelowze
xcept:
A) Manufacturingzoverheadziszanzindirectzcostzthatziszeitherzimpossiblezorzdifficultztoztraceztozazpa
rticularzjob.
B) Manufacturingzoverheadziszincurredzonlyztozsupportzsomezjobs.
C) Manufacturingzoverheadzconsistszofzbothzvariablezandzfixedzcosts.
D) Thezaveragezcostzofzactualzfixedzmanufacturingzoverheadzexpenseszwillzvaryzdependingzonzh
owzmanyzunitszarezproducedzinzazperiod.
26) Whichzofzthezfollowingzstatementszaboutzusingzazplantwidezoverheadzratezbasedzonzdirectzla
borziszcorrect?
A) Usingzazplantwidezoverheadzratezbasedzonzdirectzlabor-
hourszwillzensurezthatzdirectzlaborzcostszarezcorrectlyztracedztozjobs.
B) Usingzazplantwidezoverheadzratezbasedzonzdirectzlaborzcostszwillzensurezthatzdirectzlaborzcostszwi
llzbezcorrectlyztracedztozjobs.
C) Itziszoftenzoverlyzsimplisticzandzincorrectztozassumezthatzdirectzlabor-
hoursziszazcompany'szonlyzmanufacturingzoverheadzcostzdriver.
D) Thezlaborztheoryzofzvaluezensureszthatzusingzazplantwidezoverheadzratezbasedzonzdirectzlaborzwi
llzdozazreasonablyzgoodzjobzofzassigningzoverheadzcostsztozjobs.
27) Whichzofzthezfollowingzwouldzusuallyzbezfoundzonzazjobzcostzsheetzunderzaznormalzcostzsy
stem?
Actualzdirectzmaterialzcost Actualzmanufacturingzoverheadzcost
A) Yes Yes
B) Yes No
C) No Yes
D) No No
A) ChoicezA
B) ChoicezB
C) ChoicezC
D) ChoicezD
28) Whichzofzthezfollowingzstatementszisznotzcorrectzconcerningzmultiplezoverheadzratezsystems?
A) Azmultiplezoverheadzratezsystemziszmorezcomplexzthanzazsystemzbasedzonzazsinglezplantwidezo
verheadzrate.
B) Azmultiplezoverheadzratezsystemziszusuallyzmorezaccuratezthanzazsystemzbasedzonzazsinglezpl
antwidezoverheadzrate.
C) Azcompanyzmayzchooseztozcreatezazseparatezoverheadzratezforzeachzofzitszproductionzde
partments.
D) Inzdepartmentszthatzarezrelativelyzlabor-
intensive,ztheirzoverheadzcostszshouldzbezappliedztozjobszbasedzonzmachine-
hourszratherzthanzonzdirectzlabor-hours.
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z z z z z z z z z
ManagerialzAccounting,z16ez(Garrison)
Chapterz2 Job-OrderzCosting:zCalculatingzUnitzProductzCosts
1) Azcostzdriverziszazfactor,zsuchzaszmachine-hours,zbedszoccupied,zcomputerztime,zorzflight-
zhours,zthatzcauseszdirectzcosts.
2) Job-
orderzcostingzsystemszoftenzusezallocationzbaseszthatzdoznotzreflectzhowzjobszactuallyzusezoverhead
zresources.
3) Anzemployeeztimezticketziszanzhour-by-
hourzsummaryzofzthezemployee'szactivitieszthroughoutzthezday.
4) Thezformulazforzcomputingzthezpredeterminedzoverheadzratezis:
Predeterminedzoverheadzratez=zEstimatedztotalzmanufacturingzoverheadzcostz÷zEstimatedztotalzamo
untzofzthezallocationzbase
5) Generallyzspeaking,zwhenzgoingzthroughzthezprocesszofzcomputingzazpredeterminedzoverheadzra
te,zthezestimatedztotalzmanufacturingzoverheadzcostziszdeterminedzbeforezestimatingzthezamountzofzt
hezallocationzbase.
6) Ifzazjobzisznotzcompletedzatzyearzend,zthenznozmanufacturingzoverheadzcostzwouldzbezappliedztozth
atzjobzwhenzazpredeterminedzoverheadzrateziszused.
7) Actualzoverheadzcostszareznotzassignedztozjobszinzazjobzcostingzsystem.
8) Thezamountzofzoverheadzappliedztozazparticularzjobzequalszthezactualzamountzofzoverheadzca
usedzbyzthezjob.
9) Ifzthezoverheadzrateziszcomputedzannuallyzbasedzonzthezactualzcostszandzactivityzforzthezyear,zthez
manufacturingzoverheadzassignedztozanyzparticularzjobzcanzbezcomputedzaszsoonzaszthezjobziszcomp
leted.
10) Jobzcostzsheetszcontainzentrieszforzactualzdirectzmaterial,zactualzdirectzlabor,zandzactualzm
anufacturingzoverheadzcostzincurredzinzcompletingzazjob.
11) Inzazjob-
orderzcostzsystem,zindirectzlaborziszassignedztozazjobzusingzinformationzfromzthezemployeeztim
ezticket.
12) Ifzthezallocationzbasezinzthezpredeterminedzoverheadzratezdoesznotzdrivezoverheadzcosts,zitzw
illzneverthelesszprovidezreasonablyzaccuratezunitzproductzcostszbecausezofzthezaveragingzproces
s.
13) Azjobzcostzsheetziszusedztozrecordzhowzmuchzazcustomerzpayszforzthezjobzoncezthezjobziszco
mpleted.
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14) Inzazjob-
orderzcostingzsystem,zcostszareztracedztozindividualzunitszofzproduct.zThezsumztotalzofzsuchztracedzco
stsziszcalledzthezunitzproductzcost.
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15) Thezfactzthatzonezdepartmentzmayzbezlaborzintensivezwhilezanotherzdepartmentziszmachinezin
tensivezexplainszinzpartzwhyzmultiplezpredeterminedzoverheadzrateszarezoftenzusedzinzlargerzcom
panies.
16) Azcompanyzwillzimprovezjobzcostzaccuracyzbyzusingzmultiplezoverheadzrateszevenzifzitzcannotzid
entifyzmorezthanzonezoverheadzcostzdriver.
17) Thezappealzofzusingzmultiplezdepartmentalzoverheadzratesziszthatztheyzpresumablyzprovidezazm
orezaccuratezaccountingzofzthezcostszcausedzbyzjobs.
18) Thezcostszattachedztozproductszthatzhaveznotzbeenzsoldzarezincludedzinzendingzinventoryzonzth
ezbalancezsheet.
19) Inzabsorptionzcosting,znonmanufacturingzcostszarezassignedztozunitszofzproduct.
20) Anzemployeeztimezticketziszanzhour-by-
hourzsummaryzofzthezemployee'szactivitieszthroughoutzthezday.
21) Azbillzofzmaterialsziszazdocumentzthatzlistsztheztypezandzquantityzofzeachztypezofzdirectzm
aterialzneededztozcompletezazunitzofzproduct.
22) Mostzcountrieszrequirezsomezformzofzabsorptionzcostingzforzexternalzreports.
23) Inzazjob-orderzcostingzsystemzthatziszbasedzonzmachine-
hours,zwhichzofzthezfollowingzformulasziszcorrect?
A) Predeterminedzoverheadzratez=zActualzmanufacturingzoverheadz÷zActualzmachine-hours
B) Predeterminedzoverheadzratez=zActualzmanufacturingzoverheadz÷zEstimatedzmachine-hours
C) Predeterminedzoverheadzratez=zEstimatedzmanufacturingzoverheadz÷zEstimatedzmachine-
zhours
D) Predeterminedzoverheadzratez=zEstimatedzmanufacturingzoverheadz÷zActualzmachine-hours
24) Whichzofzthezfollowingziszthezcorrectzformulaztozcomputezthezpredeterminedzoverheadzrate?
A) Predeterminedzoverheadzratez=zEstimatedztotalzunitszinzthezallocationzbasez÷zEstimatedztotalzm
anufacturingzoverheadzcosts
B) Predeterminedzoverheadzratez=zEstimatedztotalzmanufacturingzoverheadzcostsz÷zEstimatedzt
otalzunitszinzthezallocationzbase
C) Predeterminedzoverheadzratez=zActualztotalzmanufacturingzoverheadzcostsz÷zEstimatedztotalzu
nitszinzthezallocationzbase
D) Predeterminedzoverheadzratez=zEstimatedztotalzmanufacturingzoverheadzcostsz÷zActualztotalzu
nitszinzthezallocationzbase.
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25) Assigningzmanufacturingzoverheadztozazspecificzjobziszcomplicatedzbyzallzofzthezbelowze
xcept:
A) Manufacturingzoverheadziszanzindirectzcostzthatziszeitherzimpossiblezorzdifficultztoztraceztozazpa
rticularzjob.
B) Manufacturingzoverheadziszincurredzonlyztozsupportzsomezjobs.
C) Manufacturingzoverheadzconsistszofzbothzvariablezandzfixedzcosts.
D) Thezaveragezcostzofzactualzfixedzmanufacturingzoverheadzexpenseszwillzvaryzdependingzonzh
owzmanyzunitszarezproducedzinzazperiod.
26) Whichzofzthezfollowingzstatementszaboutzusingzazplantwidezoverheadzratezbasedzonzdirectzla
borziszcorrect?
A) Usingzazplantwidezoverheadzratezbasedzonzdirectzlabor-
hourszwillzensurezthatzdirectzlaborzcostszarezcorrectlyztracedztozjobs.
B) Usingzazplantwidezoverheadzratezbasedzonzdirectzlaborzcostszwillzensurezthatzdirectzlaborzcostszwi
llzbezcorrectlyztracedztozjobs.
C) Itziszoftenzoverlyzsimplisticzandzincorrectztozassumezthatzdirectzlabor-
hoursziszazcompany'szonlyzmanufacturingzoverheadzcostzdriver.
D) Thezlaborztheoryzofzvaluezensureszthatzusingzazplantwidezoverheadzratezbasedzonzdirectzlaborzwi
llzdozazreasonablyzgoodzjobzofzassigningzoverheadzcostsztozjobs.
27) Whichzofzthezfollowingzwouldzusuallyzbezfoundzonzazjobzcostzsheetzunderzaznormalzcostzsy
stem?
Actualzdirectzmaterialzcost Actualzmanufacturingzoverheadzcost
A) Yes Yes
B) Yes No
C) No Yes
D) No No
A) ChoicezA
B) ChoicezB
C) ChoicezC
D) ChoicezD
28) Whichzofzthezfollowingzstatementszisznotzcorrectzconcerningzmultiplezoverheadzratezsystems?
A) Azmultiplezoverheadzratezsystemziszmorezcomplexzthanzazsystemzbasedzonzazsinglezplantwidezo
verheadzrate.
B) Azmultiplezoverheadzratezsystemziszusuallyzmorezaccuratezthanzazsystemzbasedzonzazsinglezpl
antwidezoverheadzrate.
C) Azcompanyzmayzchooseztozcreatezazseparatezoverheadzratezforzeachzofzitszproductionzde
partments.
D) Inzdepartmentszthatzarezrelativelyzlabor-
intensive,ztheirzoverheadzcostszshouldzbezappliedztozjobszbasedzonzmachine-
hourszratherzthanzonzdirectzlabor-hours.
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