Prefigured out overhead rates are vital because price accountants usage periodic inventory devices.

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True or False
The rate established before the start of a duration that offers estimated overhead and also an alarea aspect such as approximated direct labor, and also that is provided to assign overhead expense to tasks, is the:
Minstrel Manufacturing uses a task order costing mechanism. During one month, Minstrel purchased $198,000 of raw products on credit; issued products to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel supplies a prefigured out overhead rate of 150% of direct labor cost. The journal entry to document the purchase of materials is:
Juarez Builders incurred $285,000 of labor prices for construction work completed throughout the month of August, of which $212,000 was straight and also $73,000 was instraight supervisory expenses. The correct journal enattempt to record the straight labor for the month is:
Service firms, unprefer production firms, must just use actual prices when determining a marketing price for their services.True or False
Oxford Company kind of offers a job order costing mechanism. In the last month, the mechanism accumulated labor time tickets total $24,600 for straight labor and also $4,300 for instraight labor. How are these costs recorded?
Delittle bit Work in Process Inventory $24,600; Debit Factory Overhead $4,300; Credit Factory Wperiods Payable $28,900.
Copy Center pays an average wage of $12 per hour to employees for printing and also copying jobs, and also allocates $18 of overhead for each employee hour worked. Materials are assigned to each job according to actual price. If Job M-47 used $350 of materials and took 20 hrs of labor to finish, what is the complete cost that should be assigned to the job?
Direct products $350 + Direct labor ($12 20) + Factory overhead ($18
20) = $350 + $240 + $360 = $950
A resource document that an employee offers to report just how much time was spent functioning on a project or on overhead activities and that is offered to determine the amount of direct labor to charge to the task or to recognize the amount of instraight labor to charge to manufacturing facility overhead is dubbed a:
When time ticket information is gotten in into the bookkeeping device, the journal enattempt is a delittle bit to Factory Wperiods Payable and also a credit to Work in Process Inventory.True or False
If overhead is overused, it means that individual work have actually been charged also much overhead throughout the year and also the price of items marketed reported is as well high.True or False
Portside Watercraft supplies a project order costing mechanism. During one month Portside purchased $173,000 of raw products on credit; issued materials to manufacturing of $164,000 of which $24,000 were indirect. Portside incurred a manufacturing facility payroll of $95,000, of which $25,000 was instraight labor. Portside provides a preestablished overhead rate of 170% of straight labor expense. The journal enattempt to document the issuance of materials to manufacturing is:
Debit Work in Process Inventory $140,000; delittle Factory Overhead $24,000; credit Raw Materials Inventory $164,000.

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Minstrel Manufacturing uses a project order costing device. Throughout one month Minstrel purchased $198,000 of raw products on credit; issued products to manufacturing of $195,000 of which $30,000 were indirect. Minstrel incurred a manufacturing facility payroll of $150,000, of which $40,000 was indirect labor. Minstrel provides a preidentified overhead rate of 150% of direct labor cost. The journal enattempt to document the application of manufacturing facility overhead to production is:
Delittle Work in Process Inventory $165,000; credit Factory Overhead $165,000.Explanation$110,000 * 1.5 = $165,000
There are two fundamental kinds of expense audit systems: task order costing and periodic costing.True or False
Dallas Company type of uses a project order costing system. The company"s executives approximated that direct labor would certainly be $2,000,000 (200,000 hours at $10/hour) and that manufacturing facility overhead would be $1,500,000 for the existing period. At the end of the duration, the records show that tbelow had actually been 180,000 hrs of straight labor and $1,200,000 of actual overhead costs. Using direct labor hours as a base, what was the prefigured out overhead rate?
Prefigured out overhead prices are calculated prior to the begin of the accounting duration, and are therefore based upon approximates.True or False
A products requisition is a source document supplied by production supervisors to repursuit products for production and also also provided to assign materials prices to specific work or to overhead.True or False
Underused overhead is the amount by which actual overhead expense exceeds the overhead used to assets throughout the duration.
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