Question: Annual estimates include fixed overhead $100,000, direct labor hours 5,000, variable overhead rate $5.75, direct labor cost $50,000. If overhead is allocated based on direct

Annual estimates include fixed overhead $100,000, direct labor hours 5,000, variable overhead rate

$5.75, direct labor cost $50,000. If overhead is allocated based on direct labor hours, compute the annual

Estimate for total overhead.

a.

$128,750

b.

$133,750

c.

$178,750

d.

$150,000

e.

$200,000

36. Which form is used to assign raw materials to a job?

a.

time ticket

b.

materials requisition form

c.

job-order cost sheet

d.

Materials assignment form

e.

All of these are correct.

37. Which form is used to assign costs to a particular job

a.

time ticket

b.

Job summary ticket

c.

Job cost sheet

d.

Material requisition form

e.

All of these are correct.

38. Companies use predetermined overhead rates instead of actual end of period overhead because:

a.

Use of a predetermined overhead rate is required by GAAP

b.

Job summary tickets may not produce accurate OH allocations

c.

Management can not wait until the end of an accounting period to apply overhead, need to know job costs on a real time basis

d.

Predetermined overhead rates are typically more accurate than waiting for end of period overhead

e.

All of these are correct.

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