Scribd
Upload
121 views4 pages

Actual Vs Applied

Normal costing is a costing system that uses a predetermined overhead rate determined at the beginning of the year based on budgets to allocate overhead. It charges products with overhead using an arbitrary overhead application rate determined at the end of the period. A debit balance in the manufacturing overhead control account indicates overapplied overhead, which results if manufacturing overhead costs incurred are greater than costs charged to production.

Uploaded by

Rosemarie Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
121 views4 pages

Actual Vs Applied

Normal costing is a costing system that uses a predetermined overhead rate determined at the beginning of the year based on budgets to allocate overhead. It charges products with overhead using an arbitrary overhead application rate determined at the end of the period. A debit balance in the manufacturing overhead control account indicates overapplied overhead, which results if manufacturing overhead costs incurred are greater than costs charged to production.

Uploaded by

Rosemarie Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Manufacturing Overhead Accounting: Actual and Applied

21
1

1.

a. Manufacturing overhead.
b. Direct labor.
c. Direct materials.
d. Manufacturing costs.
1. What costing system is used to avoid any delay in the costing of jobs as
experienced in actual costing?
a. Process costing.
b. Job order costing.
c. Historical costing.
d. Normal costing.
2. Costing system that charge the product with the use of an arbitrary
overhead application rate determined at the end of \e period:
a. Normal costing
b. Actual costing
c. Job order costing
d. Process costing
3. What costing system is used to allocate overhead with the use ofi a
predetermined overhead rate determined at the beginning of the year based
on budgets.
a. Normal costing
b. Actual costing
c. Job order costing
d. Process costing

a. Overapplied overhead
5 b. Underapplied overhead
. c. Idle capacity variance
d. Spending variance
1
212 _________ ____________
- Chapter^ Chapter
70 2

1. A debit balance in the manufacturing overhead control account is:

a. Over applied overhead.


b. Underapplied overhead.
c. Idle capacity variance.
d. Spending variance.

2. Overapplied manufacturing overhead would result if.

a. manufacturing overhead costs incurred were less than costs


charged to production
b. manufacturing overhead costs incurred were unreasonably large
in relation to units produced
c. manufacturing overhead costs incurred were greater than costs
charged to production
d. the plant were operating at less than normal capacity

3. EG Company found that the differences in product costs resulting


from the application of predetermined overhead rates rather than
actual overhead rates were very significant when actual production
was substantially less than planned production. The most likely
explanation is that:

a. costs of overhead were substantially less than anticipated


b. overhead was composed chiefly of variable costs
several products were produced simultaneously
fixed manufacturing overhead was a significant cost

Highly automated manufacturing, all of the followir.. may be


In
ippropnate bases for manufacturing overhead application except:
a. machine hours
b. direct labor hours Chapter
71 c. number of setups 2
d movement of materials

You might also like