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Activity-based costs, inventory account, manufacturing OH

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5. The shift in the amount of manufacturing overhead costs applied to the mix of products produced that occurs when using a single cost driver rate as compared to using activity-based costing rates is known as:
a. cost absorption
b. underapplied overhead
c. overapplied overhead
d. cost distortion

6. Which of the following is NOT an inventory account for a manufacturing company?
a. Work-in-process.
b. Cost of goods sold.
c. Finished goods.
d. Raw materials.

7. A debit balance in the manufacturing overhead account at the end of the period indicates that:
a. manufacturing overhead is overapplied.
b. manufacturing overhead is underapplied.
c. manufacturing overhead has been accurately applied.
d. None of the above.

8. Which of the following items would not be reported on the statement of cost of goods manufactured?
a. Contribution margin.
b. Purchases.
c. Total manufacturing costs.
d. Cost of goods sold.

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5. The shift in the amount of manufacturing overhead costs applied to the mix of products produced that occurs when using a single cost driver rate as compared to using activity-based costing rates is known as:
a. cost absorption
b. underapplied overhead
c. overapplied overhead
d. cost distortion

D. When you apply overhead differently because you use one driver instead of ...

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Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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