Question 6 Which is an incorrect statement of a job-costing system? Which of the
ID: 2492565 • Letter: Q
Question
Question 6
Which is an incorrect statement of a job-costing system?
Which of the following statements about a job cost sheet is false?
Question 21
Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, $800,000; machining, $2,000,000; and inspecting, $600,000. Information on the two products is:
Overhead applied to Maxi B using activity-based costing is
Question 6
Which is an incorrect statement of a job-costing system?
Orders are customized. Orders are for large quantities. Average costing per unit is sufficient in a job shop environment. Costs are assigned to each job or each batch.Which of the following statements about a job cost sheet is false?
Companies keep a separate job cost sheet for each job. A job cost sheet constitutes the subsidiary ledger for the Finished Goods Inventory account. A job cost sheet is an essential accounting record in assigning costs to jobs. A job cost sheet is a form that is used to record the costs that are chargeable to a specific job.Question 21
Poodle Company manufactures two products, Mini A and Maxi B. Poodle's overhead costs consist of setting up machines, $800,000; machining, $2,000,000; and inspecting, $600,000. Information on the two products is:
Mini A Maxi B Direct labour hours 15,000 25,000 Machine setups 600 400 Machine hours 24,000 26,000 Inspections 800 700
Overhead applied to Maxi B using activity-based costing is
Explanation / Answer
Question 6:
Incorrect Statements:
1)Orders are for large quantities
2)A job Cost Sheet is an essential accounting record in assigning costs to jobs
Question 21:
Application of Overheads:
Overheads
Cost
Cost Driver
Total
Mini A
Maxi B
Setting up machines
$800000
Machine Setups
1000
$480000
$320000
Machining
$200000
Machine Hours
50000
$96000
$104000
Inspecting
$600000
Inspections
1500
$320000
$280000
$1600000
$896000
$704000
Overhead applied to Maxi B using activity based costing = $704000
Note: Using the given data, overheads have been applied and arrived at the answer
Overheads
Cost
Cost Driver
Total
Mini A
Maxi B
Setting up machines
$800000
Machine Setups
1000
$480000
$320000
Machining
$200000
Machine Hours
50000
$96000
$104000
Inspecting
$600000
Inspections
1500
$320000
$280000
$1600000
$896000
$704000
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