This quiz works best with JavaScript enabled. Home > Cost Accounting > Manufacturing Overhead > Manufacturing Overhead – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Manufacturing Overhead Quiz 1 (20 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) Fruit juice. C) Potato chips. D) Compact Discs. Show Answer Correct Answer: A) Custom jewelry. 2. What is the formula for POR? A) Estimated total MOH cost / Estimated basis of actual basis. B) Actual MOH cost / Estimated basis of actual basis. C) Estimated total MOH cost / Actual total MOH cost. D) Actual total MOH cost / Estimated total MOH cost. Show Answer Correct Answer: A) Estimated total MOH cost / Estimated basis of actual basis. 3. If overhead was over-applied, A) Actual overhead costs exceed applied overhead. B) Actual overhead costs exceed budgeted overhead. C) Applied overhead exceeds actual overhead costs. D) Budgeted overhead exceeds actual overhead costs. Show Answer Correct Answer: C) 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 X Basis Activity. C) POR X Actual MOH. D) POR / Basis Activity. Show Answer Correct Answer: B) 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) Job Cost Sheet. B) Production Order. C) Materials Requisition. D) Materials Purchase Order. Show Answer Correct Answer: C) Materials Requisition. 11. What are the adjustments for under applied overhead? A) Dr. MOHCr. COGS. B) Dr. Finished GoodsCr. MOH. C) Dr. CashCr. 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) Types of product costs. B) Flow of cost through the accounts. C) Number of work-in-process accounts. D) Method of record keeping. Show Answer Correct Answer: A) Types of product costs. 13. When too much overhead cost is charged to products as they are made, the result is? A) Over-applied overhead. B) Under-applied overhead. C) Understatement of Cost of Goods Sold. D) Inventory cost is too low. Show Answer Correct Answer: A) 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) Raw Materials Purchases. B) Raw Materials Inventory. C) Purchases. D) Work in Process. Show Answer Correct Answer: B) Raw Materials Inventory. 16. Which element will be credited in the manufacturing overhead cost account? A) Predetermined overhead rate. B) Actual manufacturing overhead cost. C) Budgeted manufacturing overhead cost. D) Applied manufacturing overhead cost. Show Answer Correct Answer: D) 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) DL Hours & DL Cost. C) DM Cost & DL Cost. D) DM Cost. Show Answer Correct Answer: C) DM Cost & DL Cost. 19. Which of the following is true about cost accounting? A) It involves the determination of company profits. B) It involves measuring product costs. C) It requires GAAP to be applied. D) It requires cost minimizing principles. 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. 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