WGU D101 PRE-ASSESSMENT EXAM TEST QUESTIONS
AND ANSWERS | LATEST 2026/2027 UPDATE | 100%
VERIFIED AND GRADED A+ - WGU
1) Job order costing- When is it appropriate to use job order costing?
The customer has to provide the specifications of the product or service. In order to use job
order costing you must be able to separate and identify each job (product) being produced.
Companies that cannot specifically identifying and separate each job they use processing
costing.
2) Which figures are used in computing a predetermined overhead rate?
Accounting for manufacturing cost is not the same process as accounting for direct
materials and direct labor costs. Because manufacturing overhead costs generally do not
coincide with the flow of production.
The figures used in computing a predetermined overhead rate are forecasted or estimated
overhead costs and forecasted or estimated activity level. Direct labor is an example of the
expected level of activity.
To compute a predetermined overhead rate. This rate is computed as budgeted
overhead divided by budgeted activity measure. The result is the amount of
overhead per hour (either direct labor hour or machine hour) that should be
assigned to each product on which work is performed during that period. Note
that the predetermined overhead rate is based on budgeted overhead, not
actual overhead.
,Use direct labor hours to apply manufacturing overhead. What is the predetermined rate?
Remember, Budgeted means estimated
The budgeted manufacturing overhead for the coming year is $640,000 Budgeted
direct labor hours 16,000 This is all you need to remember Answer 640,000/16000
= $40
How are actual manufacturing overhead costs incurred through the year journalized? As
debits into the manufacturing overhead account. As actual manufacturing overhead costs
are incurred, they are entered as debits into the manufacturing overhead account.
Answer: 172,000 – 156,000 = $16,000
,While actual manufacturing overhead costs are recorded as debits to manufacturing overhead,
applied manufacturing overhead entries are recorded as credits to manufacturing overhead.
It is important to understand that the debit side of the manufacturing overhead
account is used to record actual overhead expenses. Conversely, the credit side
of this account is used to record applied manufacturing overhead that is
simultaneously debited to the work-in-process inventory account, as illustrated
below.
Credit to cash because credit decrease asset accounts.
,
AND ANSWERS | LATEST 2026/2027 UPDATE | 100%
VERIFIED AND GRADED A+ - WGU
1) Job order costing- When is it appropriate to use job order costing?
The customer has to provide the specifications of the product or service. In order to use job
order costing you must be able to separate and identify each job (product) being produced.
Companies that cannot specifically identifying and separate each job they use processing
costing.
2) Which figures are used in computing a predetermined overhead rate?
Accounting for manufacturing cost is not the same process as accounting for direct
materials and direct labor costs. Because manufacturing overhead costs generally do not
coincide with the flow of production.
The figures used in computing a predetermined overhead rate are forecasted or estimated
overhead costs and forecasted or estimated activity level. Direct labor is an example of the
expected level of activity.
To compute a predetermined overhead rate. This rate is computed as budgeted
overhead divided by budgeted activity measure. The result is the amount of
overhead per hour (either direct labor hour or machine hour) that should be
assigned to each product on which work is performed during that period. Note
that the predetermined overhead rate is based on budgeted overhead, not
actual overhead.
,Use direct labor hours to apply manufacturing overhead. What is the predetermined rate?
Remember, Budgeted means estimated
The budgeted manufacturing overhead for the coming year is $640,000 Budgeted
direct labor hours 16,000 This is all you need to remember Answer 640,000/16000
= $40
How are actual manufacturing overhead costs incurred through the year journalized? As
debits into the manufacturing overhead account. As actual manufacturing overhead costs
are incurred, they are entered as debits into the manufacturing overhead account.
Answer: 172,000 – 156,000 = $16,000
,While actual manufacturing overhead costs are recorded as debits to manufacturing overhead,
applied manufacturing overhead entries are recorded as credits to manufacturing overhead.
It is important to understand that the debit side of the manufacturing overhead
account is used to record actual overhead expenses. Conversely, the credit side
of this account is used to record applied manufacturing overhead that is
simultaneously debited to the work-in-process inventory account, as illustrated
below.
Credit to cash because credit decrease asset accounts.
,
