This quiz works best with JavaScript enabled. Home > Accounting > Cost Accounting > Manufacturing Overhead > Manufacturing Overhead – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Manufacturing Overhead Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A company that makes which of the following types of products would best be suited for a job costing system? A) Custom jewelry. B) Compact Discs. C) Potato chips. D) Fruit juice. Show Answer Correct Answer: A) Custom jewelry. 2. What is the formula for POR? A) Actual MOH cost / Estimated basis of actual basis. B) Estimated total MOH cost / Actual total MOH cost. C) Estimated total MOH cost / Estimated basis of actual basis. D) Actual total MOH cost / Estimated total MOH cost. Show Answer Correct Answer: C) Estimated total MOH cost / Estimated basis of actual basis. 3. If overhead was over-applied, A) Budgeted overhead exceeds actual overhead costs. B) Applied overhead exceeds actual overhead costs. C) Actual overhead costs exceed applied overhead. D) Actual overhead costs exceed budgeted overhead. Show Answer Correct Answer: B) Applied overhead exceeds actual overhead costs. 4. Which of the company that might not apply job order costing? A) Aircrafts at Boeing. B) Audit process at Price Waterhouse Coopers. C) Movies produced by Universal Studios. D) Beverage production by Pepsi. Show Answer Correct Answer: D) Beverage production by Pepsi. 5. What is manufacturing overhead? A) Overhead that incurred during production in a certain period of time. B) Overhead incurred by manufacturer. C) All manufacturing cost other than Direct Material and Direct Labour cost. D) Cost of product will be constant at a certain period. Show Answer Correct Answer: C) All manufacturing cost other than Direct Material and Direct Labour cost. 6. What is formula for Applied Manufacturing Overhead A) DM + DL + MOH. B) POR / Basis Activity. C) POR X Basis Activity. D) POR X Actual MOH. Show Answer Correct Answer: C) POR X Basis Activity. 7. A major purpose of cost accounting is to.. A) Classify all costs as operating or non-operating. B) Measure, record, and report period costs. C) Provide information to stockholders for investment decisions. D) Measure, record, and report product costs. Show Answer Correct Answer: D) Measure, record, and report product costs. 8. Freight-out affects- A) Selling and distribution costs. B) Direct materials costs. C) Raw materials costs. D) Administrative costs. Show Answer Correct Answer: A) Selling and distribution costs. 9. Prime costs are made up of- A) Raw materials costs + direct labour costs. B) Direct labour costs + Indirect labour costs. C) Factory overheads + administrative costs. D) Selling and distribution costs + administrative costs. Show Answer Correct Answer: A) Raw materials costs + direct labour costs. 10. A source document that production managers use to request materials for production and that is used to assign materials costs to specific jobs or to overhead is a: A) Materials Purchase Order. B) Production Order. C) Materials Requisition. D) Job Cost Sheet. Show Answer Correct Answer: C) Materials Requisition. 11. What are the adjustments for under applied overhead? A) Dr. MOHCr. COGS. B) Dr. CashCr. MOH. C) Dr. Finished GoodsCr. MOH. D) Dr. COGSCr. MOH. Show Answer Correct Answer: D) Dr. COGSCr. MOH. 12. Which characteristic is the same in both job order costing systems and process costing systems? A) Method of record keeping. B) Types of product costs. C) Number of work-in-process accounts. D) Flow of cost through the accounts. Show Answer Correct Answer: B) Types of product costs. 13. When too much overhead cost is charged to products as they are made, the result is? A) Inventory cost is too low. B) Understatement of Cost of Goods Sold. C) Under-applied overhead. D) Over-applied overhead. Show Answer Correct Answer: D) Over-applied overhead. 14. The two basic types of cost accounting systems are: A) Job order costing and perpetual costing. B) Job order costing and customized product costing. C) Job order costing and periodic costing. D) Job order costing and process costing. Show Answer Correct Answer: D) Job order costing and process costing. 15. In accumulating raw materials costs, companies add the cost of raw materials purchased in a perpetual system to: A) Work in Process. B) Raw Materials Purchases. C) Purchases. D) Raw Materials Inventory. Show Answer Correct Answer: D) Raw Materials Inventory. 16. Which element will be credited in the manufacturing overhead cost account? A) Actual manufacturing overhead cost. B) Applied manufacturing overhead cost. C) Budgeted manufacturing overhead cost. D) Predetermined overhead rate. Show Answer Correct Answer: B) Applied manufacturing overhead cost. 17. Bad debts are considered to be a- A) Administrative costs. B) Overhead costs. C) Selling and distribution costs. D) Cost of sales. Show Answer Correct Answer: C) Selling and distribution costs. 18. Which basis uses percentage to determine POR? A) Machine Hours & DL Hours. B) DM Cost & DL Cost. C) DL Hours & DL Cost. D) DM Cost. Show Answer Correct Answer: B) DM Cost & DL Cost. 19. Which of the following is true about cost accounting? A) It requires GAAP to be applied. B) It involves measuring product costs. C) It requires cost minimizing principles. D) It involves the determination of company profits. Show Answer Correct Answer: B) It involves measuring product costs. 20. Overhead can be classified as follows, EXCEPT ..... A) Manufacturing. B) Prime Costs. C) Selling and Distribution. D) Administration. Show Answer Correct Answer: B) Prime Costs. 21. Which basis uses RM per basis to determine POR? A) DM Cost & DL Cost. B) DL Cost & DL Hours. C) Unit of Production, DL Hours & Machine Hours. D) Unit of Production. Show Answer Correct Answer: C) Unit of Production, DL Hours & Machine Hours. 22. The target cost for a job using job order costing is calculated as: A) Direct costs + desired profit. B) Expected selling price-desired profit. C) Expected selling price-direct costs. D) Expected selling price + desired profit. Show Answer Correct Answer: B) Expected selling price-desired profit. 23. Which of the following is the first step in developing an Overhead Absorption Rate (OHAR)? A) Re-apportionment. B) Apportionment. C) Allocation. D) Overhead Absorption Rate. Show Answer Correct Answer: C) Allocation. 24. The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as: A) Undetermined Overhead. B) Overapplied Overhead. C) Predetermined Overhead. D) Underapplied Overhead. Show Answer Correct Answer: B) Overapplied Overhead. 25. What is Overhead? A) Indirect Material. B) Indirect Labour. C) Indirect Expenses. D) All of the above. Show Answer Correct Answer: D) All of the above. 26. What items of expenditure go together to make up the PRIME COST? A) Materials only. B) Labour only. C) Both materials and labour. D) Materials, labour and overheads. Show Answer Correct Answer: C) Both materials and labour. 27. A company is more likely to use a job order cost system if: A) It manufactures products with unique characteristics. B) Its production is continuous. C) It uses a periodic inventory system. D) It manufactures a large volume of similar products. Show Answer Correct Answer: A) It manufactures products with unique characteristics. 28. Which of the following would NOT usually be considered a product cost? A) Advertising. B) Indirect labor. C) Property taxes on factory building. D) Direct materials. Show Answer Correct Answer: A) Advertising. 29. An overhead costs of insurance on plant, is best be apportioned according to ..... A) Horse power (hp). B) Square meter area. C) Number of employees. D) Value of plant (RM). Show Answer Correct Answer: D) Value of plant (RM). 30. What are the components of normal costing system? A) Actual DM + Actual DL + Applied MOH. B) Actual DM + Actual DL + Actual MOH. C) Actual DM + Actual DL = Applied MOH. D) Actual DM + Applied MOH. Show Answer Correct Answer: A) Actual DM + Actual DL + Applied MOH. Next →Related QuizzesCost Accounting QuizzesAccounting QuizzesManufacturing Overhead Quiz 2 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books