Questions from Managerial Accounting

Q: What is under applied overhead? When Cost of Goods Sold is

What is under applied overhead? When Cost of Goods Sold is adjusted for under applied overhead, will the cost increase or decrease? Why?

Q: What is over applied overhead? When Cost of Goods Sold is

What is over applied overhead? When Cost of Goods Sold is adjusted for over applied overhead, will the cost increase or decrease? Why?

Q: What are the similarities in and differences between the manufacturing cost flows

What are the similarities in and differences between the manufacturing cost flows for job order firms and process firms?

Q: What journal entry would be made as goods are transferred out from

What journal entry would be made as goods are transferred out from one department to another department? From the final department to the warehouse?

Q: What is the role of materials requisition forms in a job-

What is the role of materials requisition forms in a job-order costing system? Time tickets? Predetermined overhead rates?

Q: Carver Company uses a plant wide overhead rate based on direct labor

Carver Company uses a plant wide overhead rate based on direct labor cost. Suppose that during the year, Carver raises its wage rate for direct labor. How would that affect overhead applied? The total...

Q: What is an overhead variance? How is it accounted for typically

What is an overhead variance? How is it accounted for typically?

Q: Explain why transferred-in costs are a special type of raw

Explain why transferred-in costs are a special type of raw material for the receiving department.

Q: If a company decides to increase advertising expense by $25,

If a company decides to increase advertising expense by $25,000, how will that affect the predetermined overhead rate? Eventual cost of goods sold?

Q: Describe the five steps in accounting for the manufacturing activity of a

Describe the five steps in accounting for the manufacturing activity of a processing department, and explain how they interrelate.