64) If the overhead control account has a debit balance at the end of the period,

A) overhead is overapplied and the difference should be credited to the proper accounts.

B) overhead is overapplied and the difference should be debited to the proper accounts.

C) overhead is underapplied and the difference should be debited to the proper accounts.

D) overhead is underapplied and the difference should be credited to the proper accounts.

65) If the overhead control account has a credit balance at the end of the period,

A) overhead is overapplied and the difference should be credited to the proper accounts.

B) overhead is overapplied and the difference should be debited to the proper accounts.

C) overhead is underapplied and the difference should be debited to the proper accounts.

D) overhead is underapplied and the difference should be credited to the proper accounts.

66) The proration method of disposing of overhead variances assigns the variance in proportion to the sizes of the ending account balances to

A) WIP and finished goods inventory.

B) cost of goods sold and WIP inventory.

C) direct materials and WIP inventory.

D) cost of goods sold, WIP and finished goods inventory.

67) Reed Company incurred actual overhead costs of $640,000 for the year. A budgeted factory-overhead rate of 210 percent of direct-labour cost was determined at the beginning of the year. Budgeted factory overhead was $630,000, and budgeted direct-labour cost was $300,000. Actual direct-labour cost was $320,000 for the year.

The factory overhead variance for the year was

A) $10,000 underapplied.

B) $10,000 overapplied.

C) $32,000 underapplied.

D) $32,000 overapplied.

68) Fulton Company incurred actual overhead costs of $160,000 for the year. A budgeted factory-overhead rate of 210 percent of direct-labour cost was determined at the beginning of the year. Budgeted factory overhead was $157,500, and budgeted direct-labour cost was $75,000. Actual direct-labour cost was $80,000 for the year.

The factory overhead variance for the year was

A) $2,500 underapplied.

B) $2,500 overapplied.

C) $8,000 underapplied.

D) $8,000 overapplied.

69) Reed Company incurred actual overhead costs of $640,000 for the year. A budgeted factory-overhead rate of 210 percent of direct-labour cost was determined at the beginning of the year. Budgeted factory overhead was $630,000, and budgeted direct-labour cost was $300,000. Actual direct-labour cost was $320,000 for the year.

The disposition of the variance, assuming an immaterial amount, would include a

A) debit to Cost of Goods Sold for $32,000.

B) credit to Cost of Goods Sold for $32,000.

C) debit to Cost of Goods Sold for $10,000.

D) credit to Cost of Goods Sold for $10,000.

70) Reed Company incurred actual overhead costs of $640,000 for the year. A budgeted factory-overhead rate of 210 percent of direct-labour cost was determined at the beginning of the year. Budgeted factory overhead was $630,000, and budgeted direct-labour cost was $300,000. Actual direct-labour cost was $320,000 for the year.

The disposition of the variance, assuming a material amount, would include a

A) debit to Factory Department Overhead Control for $32,000.

B) credit to Factory Department Overhead Control for $10,000.

C) debit to Cost of Goods Sold for $32,000.

D) credit to Cost of Goods Sold for $10,000.

71) Fulton Company incurred actual overhead costs of $160,000 for the year. A budgeted factory-overhead rate of 210 percent of direct-labour cost was determined at the beginning of the year. Budgeted factory overhead was $157,500, and budgeted direct-labour cost was $75,000. Actual direct-labour cost was $80,000 for the year.

The disposition of the variance, assuming an immaterial amount, would include a

A) debit to Cost of Goods Sold for $8,000.

B) credit to Cost of Goods Sold for $8,000.

C) debit to Cost of Goods Sold for $2,500.

D) credit to Cost of Goods Sold for $2,500.

72) Fulton Company incurred actual overhead costs of $160,000 for the year. A budgeted factory-overhead rate of 210 percent of direct-labour cost was determined at the beginning of the year. Budgeted factory overhead was $157,500, and budgeted direct-labour cost was $75,000. Actual direct-labour cost was $80,000 for the year.

The disposition of the variance, assuming a material amount, would include a

A) debit to Factory Department Overhead Control for $8,000.

B) credit to Factory Department Overhead Control for $2,500.

C) debit to Cost of Goods Sold for $8,000.

D) credit to Cost of Goods Sold for $2,500.

The following information was gathered for Larsen Company for the year ended December 31, 20X1.

Budgeted direct-labour hours

15,500

Actual direct-labour hours

16,200

Budgeted factory overhead

$73,625

Actual factory overhead

$74,990

73) Assume that direct-labour hours is the cost driver.What is the amount of over/underapplied overhead?

A) $1,365 underapplied.

B) $1,365 overapplied.

C) $3,225 underapplied.

D



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