Poulenc plc. uses direct labour cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the company misclassified a portion of direct labour cost as indirect labour. The effect of this misclassification will be to: a)  understate the predetermined overhead rate. b)  have no effect on the predetermined overhead rate. c)  cannot be determined from the information given. d)  overstate the predetermined overhead rate.

Jaan

If, at the end of the year, Manufacturing Overhead has been over applied, it means that: * actual overhead costs were greater than the overhead assigned to jobs. overhead has not been applied to jobs still in process. cost of goods will have to be increased by the amount of the over applied overhead. None of the above

These are tue/false questions.   ____   21.   Differential revenue is the amount of increase or decrease in revenue expected from a particular course of action as compared with an alternative.   ____   22.   Equivalent units of production are the number of units that could have been manufactured from start to finish during an accounting period.   ____   23.   One of the differences in accounting for a process costing system compared to a job order system is that the amounts used to transfer goods from one department to the next comes from the cost of production report instead of job cost cards.   ____   24.   The primary accounting tool for controlling and reporting for cost centers is a budget performance report.   ____   25.   The dollars available from each unit of sales to cover fixed cost and profit is the unit variable cost.