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Boulder Company uses a job order cost system and applies overhead...

  1. Boulder Company uses a job order cost system and applies overhead based on estimated rates. The overhead application rate is based on total estimated overhead costs of $300,000 and direct labor hours of 60,000. For job 8365, direct labor hours were 500.

A. Overhead expense should be credited for $3,000

B. Factory overhead should be credited for $3,000

C. None of these

D. Factory overhead should be debited for $3,000

E. Overhead Expense should be debited for $3,000


2.Which of the following sequences describe cost living in a job cost system?

A. Work in process, materials, finished goods, cost of goods sold.

B. Materials, cost of goods sold, work in process, finished goods.

C. Materials, work in process, cost of goods sold, finished goods.

D. Work in process, materials, cost of goods sold, finished goods

E. None of these


3.An equivalent unit of material is equal to:

A. fifty percent of the material cost of a unit of finished goods

B. None of these

C. The amount of material necessary to start a unit of production into work in process

D. the amount of material necessary to complete one unit of production

E. a unit of work in process inventory


4.Which of the following statements is true regarding average fixed costs?

A.average fixed costs per unit remain fixed regardless of level of activity

B. average fixed costs per unit rise as the level of activity rises

c. average fixed costs per unit rise as the level of activity rises

d. average fixed costs per unit cannot be determined

e. average fixed costs per unit fall as the level of activity rise


5.variable costs are expenses that ______.

A.remain constant on a per-unit basis but change in total based on activity level

b.remain constant on a per-unit basis and remain constant in total regardless of activity level

c. decrease on a per-unit basis as activity level increases

d. remain constant in total regardless of activity level within a relevant range

e. none of these answers is correct


6.In a job order cost system, indirect labor incurred is debited to which account?

a. work in process inventory

b. finished goods inventory

c. manufacturing overhead

d. cost of goods sold

e. any of these is correct

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