All the following statements about multiple predetermined overhead ratesare correct, EXCEPT:O a.All the given answers are correct.O b. They are calculated at the beginning of the accounting period oncethe actual amount of manufacturing overhead is known.O c. They are based on estimated total manufacturing ověrhead costsO d. They are calculated for each department by dividing totalestimated manufacturing overhead cost by total actual units of theallocation base.O e. They improve job-order costing's accuracy accounting for costs.

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Description: All the following statements about multiple predetermined overhead ratesare correct, EXCEPT:O a.All the given answers are correct.O b. They are calculated at the beginning of the accounting period oncethe actual amount of manufacturing overhead is k

Predetermined overhead rate is estimated rate at which overheads of the business is to be allocated…

Business

Accounting

All the following statements about multiple predetermined overhead rates are correct, EXCEPT: O a. All the given answers are correct. O b. They are calculated at the beginning of the accounting period once the actual amount of manufacturing overhead is known. c. O c. They are based on estimated total manufacturing overhead costs O d. They are calculated for each department by dividing total estimated manufacturing overhead cost by total actual units of the allocation base. O e. They improve job-order costing's accuracy accounting for costs.

All the following statements about multiple predetermined overhead rates are correct, EXCEPT: O a. All the given answers are correct. O b. They are calculated at the beginning of the accounting period once the actual amount of manufacturing overhead is known. c. O c. They are based on estimated total manufacturing overhead costs O d. They are calculated for each department by dividing total estimated manufacturing overhead cost by total actual units of the allocation base. O e. They improve job-order costing's accuracy accounting for costs.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6MC: Which is the correct formula for computing the overhead rate? A. estimated use of the cost driver...

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Similar questions

Assuming that all materials are added at the beginning of the process and that labor and factory overhead are applied evenly during the process, compute the figures to be inserted in the blank spaces of the following data, using the weighted average cost method. [Hint: for best success in solving each Case, solve them in numerical order starting with (1)]
Assigning indirect costs to departments is completed by __________________________. applying the predetermined overhead rate debiting the manufacturing costs incurred applying the costs to manufacturing overhead applying the costs to work in process inventory
Overhead costs are assigned to each product based on __________________. A. the proportion of that products use of the cost driver B. a predetermined overhead rate for a single cost driver C. price of the product D. machine hours per product
Assigning indirect costs to specific jobs is completed by which of the following? applying the costs to manufacturing overhead using the predetermined overhead rate using the manufacturing costs incurred applying the indirect labor to the work in process inventory
During production, to what are the costs in job order costing applied? A. manufacturing overhead B. cost of goods sold C. each individual product D. each individual department
In a normal costing system, the cost of a job includes a. actual direct materials, actual direct labor, and estimated (applied) overhead. b. estimated direct materials, estimated direct labor, and estimated overhead. c. actual direct materials, actual direct labor, actual overhead, and actual selling cost. d. actual direct materials, actual direct labor, and actual overhead. e. None of these. Job-order costing requires the use of actual, not normal, costing.
A company has traditionally allocated its overhead based on machine hours but collected this information to change to activity based costing: A. How much overhead would be assigned to each unit under the traditional allocation method? B. How much overhead would be assigned to each unit under activity-based costing?
Which is the correct formula for computing the overhead rate? A. estimated use of the cost driver for production/estimated overhead for the activity B. estimated overhead for the product/estimated use of the cost driver for the activity C. estimated use of the cost driver for production/estimated overhead for the activity D. estimated overhead for the activity/estimated use of the cost driver for the activity
Job order cost sheets show the following costs assigned to each job: The company assigns overhead at twice the direct labor cost. What is the total cost for each job?
Carltons Kitchens three cost pools and overhead estimates are as follows: Compare the overhead allocation using: A. The traditional allocation method B. The activity-based costing method (Hint: the traditional method uses machine hours as the allocation base.)
Which of the following product situations is better suited to job order costing than to process costing? A. Each product batch is exactly the same as the prior batch. B. The costs are easily traced to a specific product. C. Costs are accumulated by department. D. The value of work in process is based on assigning standard costs.
A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: A. How much overhead would be allocated to each unit under the traditional allocation method? B. How much overhead would be allocated to each unit under activity-based costing?