This quiz works best with JavaScript enabled. Home > Cost Accounting > Manufacturing Overhead > Manufacturing Overhead – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Manufacturing Overhead Quiz 3 (11 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. Which company is least likely to use a process costing system? A) Paper manufacturer. B) Soft drink bottler. C) Accounting firm. D) Petroleum processor. Show Answer Correct Answer: C) Accounting firm. 3. 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. 4. Raw materials are assigned to a job when: A) The job is sold. B) The materials are purchased. C) The materials are received from the vendor. D) The materials are issued by the materials storeroom. Show Answer Correct Answer: D) The materials are issued by the materials storeroom. 5. Which of the following is not considered as a component of product cost? A) Property taxes on factory building. B) Direct materials. C) Indirect labor. D) Advertising. Show Answer Correct Answer: D) Advertising. 6. 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. 7. What are the components of actual costing system? A) Actual DM + Actual DL + Applied MOH. B) Actual DM + Actual DL. C) Actual DM + Actual DL + Actual MOH. D) Applied DM + Applied DL + Applied MOH. Show Answer Correct Answer: C) Actual DM + Actual DL + Actual MOH. 8. A job cost sheet includes: A) Direct materials, applied overhead, administrative costs. B) Direct materials, direct labor, applied overhead. C) Direct labor, actual overhead, selling costs. D) Direct materials, direct labor, operating costs. Show Answer Correct Answer: B) Direct materials, direct labor, applied overhead. 9. Where are you unlikely to see job costing being used? A) In a garage. B) In construction. C) In designer fashion. D) In a chemical plant. Show Answer Correct Answer: D) In a chemical plant. 10. In recording the issuance of raw materials in a job order cost system, it would be incorrect to: A) Increase Work in Process Inventory. B) Increase Finished Goods Inventory. C) Increase Manufacturing Overhead. D) Decrease Raw Materials Inventory. Show Answer Correct Answer: B) Increase Finished Goods Inventory. 11. Conversion costs are A) Direct material plus labour cost. B) Direct labour plus manufacturing overhead. C) Direct materials plus manufacturing overhead. D) Indirect material plus indirect labour. Show Answer Correct Answer: B) Direct labour plus manufacturing overhead. ← PreviousRelated QuizzesCost Accounting QuizzesManufacturing Overhead Quiz 1Manufacturing Overhead Quiz 2 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books