FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- The appropriate cost accounting system to use when inventory items are produced on an assembly line is a. perpetual method. b. job-order costing. c. weighted average. d. process costing.arrow_forwardIn a process costing system, manufacturing overhead applied is usually recorded as a debit to______?arrow_forwardIn activity-based costing, the activity rate for an activity cost pool is computed by dividing the total overhead cost in the activity cost pool by: Multiple Choice the direct labor-hours required by the product. the machine-hours required by the product. the total activity for the activity cost pool. the total direct labor-hours for the activity cost pool.arrow_forward
- Which of the following measures is appropriate as a cost driver for machine set up activity costs?a. number of setupsb. machine hoursc. number of workersd. number of unitsarrow_forwardMaglie Company manufactures two video game consoles: handheld and home. The handheld consoles are smaller and less expensive than the home consoles. The company only recently began producing the home model. Since the introduction of the new product, profits have been steadily declining. Management believes that the accounting system is not accurately allocating costs to products, particularly because sales of the new product have been increasing. Management has asked you to investigate the cost allocation problem. You find that manufacturing overhead is currently assigned to products based on their direct labor costs. For your investigation, you have data from last year. Manufacturing overhead was $1,204,000 based on production of 300,000 handheld consoles and 92,000 home consoles. Direct labor and direct materials costs were as follows. Handheld Home Total $378,000 693,000 $1,505,000 1,433,000 Direct labor $1,127,000 740,000 Materials Management has determined that overhead costs are…arrow_forwardAs production occurs, materials, direct labor, and applied manufacturing overhead are recorded in a.materials. b.cost of goods sold. c.finished goods. d.work in process.arrow_forward
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