60.1K

Verified Solution

Link Copied!

All of the following statements related to the four step process used to compute the predetermined overhead rate are true except: The third step is to use the cost formula, Y = a + b, where "a" is fixed cost and "b" is variable cost, to estimate the total manufacturing overhead cost for the coming period. The fourth step is to compute the predetermined overhead rate by dividing estimated total manufacturing overhead cost by estimated total amount of the allocation base. The second step is to estimate the total fixed manufacturing overhead cost for the coming period and the variable manufacturing overhead cost per unit of the allocation base The first step is to estimate the total amount of the allocation base that will be required for next period's estimated level of production. QUESTION 5 All of the following statements are true except: The schedule of cost of goods manufactured shows a calculation of total manufacturing costs that includes direct materials used, plus direct labor plus manufacturing overhead applied to work in process. The first step in creating the cost of goods manufactured schedule is to calculate the costs of raw materials used in production. The cost of goods sold schedule contains a detailed list of employees and their pay rates used to calculate direct and indirect labor The schedule of cost of goods sold adjusts for underapplied or overapplied overhead. QUESTION 6 Bella Company's predetermined overhead rate is $12.00 per direct labor hour and its direct labor wage rate is $18.00 per hour. The following information pertains to Job #A435: Direct materials $560 Direct labor If Job #A435 consists of 50 units, what is the average cost assigned to each unit included in the job? $648 $24.16 $24.40 $32.80 $28.48 All of the following statements related to the four step process used to compute the predetermined overhead rate are true except: The third step is to use the cost formula, Y = a + b, where "a" is fixed cost and "b" is variable cost, to estimate the total manufacturing overhead cost for the coming period. The fourth step is to compute the predetermined overhead rate by dividing estimated total manufacturing overhead cost by estimated total amount of the allocation base. The second step is to estimate the total fixed manufacturing overhead cost for the coming period and the variable manufacturing overhead cost per unit of the allocation base The first step is to estimate the total amount of the allocation base that will be required for next period's estimated level of production. QUESTION 5 All of the following statements are true except: The schedule of cost of goods manufactured shows a calculation of total manufacturing costs that includes direct materials used, plus direct labor plus manufacturing overhead applied to work in process. The first step in creating the cost of goods manufactured schedule is to calculate the costs of raw materials used in production. The cost of goods sold schedule contains a detailed list of employees and their pay rates used to calculate direct and indirect labor The schedule of cost of goods sold adjusts for underapplied or overapplied overhead. QUESTION 6 Bella Company's predetermined overhead rate is $12.00 per direct labor hour and its direct labor wage rate is $18.00 per hour. The following information pertains to Job #A435: Direct materials $560 Direct labor If Job #A435 consists of 50 units, what is the average cost assigned to each unit included in the job? $648 $24.16 $24.40 $32.80 $28.48

Answer & Explanation Solved by verified expert

See Answer