This quiz works best with JavaScript enabled. Home > Accounting > Cost Accounting > Manufacturing Overhead > Manufacturing Overhead – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Manufacturing Overhead Quiz 2 (21 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to: A) Cost of Goods Sold. B) Finished Goods Inventory. C) Work in Process Inventory. D) Raw Materials Inventory. Show Answer Correct Answer: C) Work in Process Inventory. 2. An important feature of a job order costing is that each job, A) Has its own distinguishing characteristics. B) Must be similar to previous jobs completed. C) Consists of one unit of output. D) Must be completed before a new job is accepted. Show Answer Correct Answer: A) Has its own distinguishing characteristics. 3. What are the adjustments for over applied Manufacturing Overhead? A) Dr. COGSCr. MOH. B) Dr. MOHCr. Finished Goods. C) Dr. MOHCr. COGS. D) Dr. MOHCr. Cash. Show Answer Correct Answer: C) Dr. MOHCr. COGS. 4. All characteristics of job-order costing except, A) Costs accumulated by job. B) Cost per unit computed by dividing total or department job costs by units produced on that job. C) Homogeneous products. D) Wide variety of distinct products. Show Answer Correct Answer: C) Homogeneous products. 5. Customs duties increase- A) Raw material costs. B) Overhead costs. C) Selling and distribution costs. D) Sales. Show Answer Correct Answer: A) Raw material costs. 6. Manufacturing overhead is underapplied if: A) The predetermined rate equals the actual rate. B) Actual overhead is less than applied. C) Actual overhead is greater than applied. D) Actual overhead equals applied overhead. Show Answer Correct Answer: B) Actual overhead is less than applied. 7. Factory insurance is considered to be a- A) Prime costs. B) Operating income. C) Administrative costs. D) Overhead costs. Show Answer Correct Answer: D) Overhead costs. 8. An overhead costs of rental, is best be apportioned according to ..... A) Number of employees. B) Horse power (hp). C) Square meter area. D) Value of plant (RM). Show Answer Correct Answer: C) Square meter area. 9. Explain the concept of actual overhead. A) Usually made by management based on past experience. B) Overhead that incurred during production in a certain period of time. C) The amount of overhead that is estimated before the production start. D) Known as indirect manufacturing costs. Show Answer Correct Answer: B) Overhead that incurred during production in a certain period of time. 10. Which of the following source documents is used to record the amount of direct materials on the job cost sheet? A) Cash Book. B) Material Requisition Form. C) Production Cost Report. D) Time Ticket. Show Answer Correct Answer: B) Material Requisition Form. 11. Predetermined overhead rate (based on direct labour hours) x actual direct labour hours = ..... A) Actual manufacturing cost. B) Budgeted manufacturing overhead cost. C) Actual direct labour cost. D) Applied manufacturing overhead cost. Show Answer Correct Answer: D) Applied manufacturing overhead cost. 12. Which company is least likely to use a process costing system? A) Accounting firm. B) Soft drink bottler. C) Petroleum processor. D) Paper manufacturer. Show Answer Correct Answer: A) Accounting firm. 13. The formula for computing the predetermined manufacturing overhead rate is estimated annual overhead costs divided by estimated annual operating activity, expressed as: A) Direct labor cost. B) Direct labor hours. C) Machine hours. D) Any of the above. Show Answer Correct Answer: D) Any of the above. 14. Raw materials are assigned to a job when: A) The materials are issued by the materials storeroom. B) The materials are received from the vendor. C) The materials are purchased. D) The job is sold. Show Answer Correct Answer: A) The materials are issued by the materials storeroom. 15. Which of the following is not considered as a component of product cost? A) Direct materials. B) Property taxes on factory building. C) Advertising. D) Indirect labor. Show Answer Correct Answer: C) Advertising. 16. Depreciation on office furniture is considered to be a- A) Administrative costs. B) Selling and distribution costs. C) Overhead costs. D) Negative asset. Show Answer Correct Answer: A) Administrative costs. 17. What are the components of actual costing system? A) Actual DM + Actual DL. B) Actual DM + Actual DL + Actual MOH. C) Applied DM + Applied DL + Applied MOH. D) Actual DM + Actual DL + Applied MOH. Show Answer Correct Answer: B) Actual DM + Actual DL + Actual MOH. 18. A job cost sheet includes: A) Direct labor, actual overhead, selling costs. B) Direct materials, direct labor, operating costs. C) Direct materials, direct labor, applied overhead. D) Direct materials, applied overhead, administrative costs. Show Answer Correct Answer: C) Direct materials, direct labor, applied overhead. 19. Where are you unlikely to see job costing being used? A) In construction. B) In designer fashion. C) In a chemical plant. D) In a garage. Show Answer Correct Answer: C) In a chemical plant. 20. In recording the issuance of raw materials in a job order cost system, it would be incorrect to: A) Increase Finished Goods Inventory. B) Increase Work in Process Inventory. C) Increase Manufacturing Overhead. D) Decrease Raw Materials Inventory. Show Answer Correct Answer: A) Increase Finished Goods Inventory. 21. Conversion costs are A) Indirect material plus indirect labour. B) Direct materials plus manufacturing overhead. C) Direct labour plus manufacturing overhead. D) Direct material plus labour cost. Show Answer Correct Answer: C) Direct labour plus manufacturing overhead. ← PreviousRelated QuizzesCost Accounting QuizzesAccounting QuizzesManufacturing Overhead Quiz 1 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books