1.

)- All of the above would be acceptable

2.) Application rates for factory overhead best reflect anticipated fluctuations

-Normal Capacity

3.) Backflushing, or backflush costing

-requires significantly less record keeping than other methods.

4.) In a backflush accounting system, a single account is used for the ff:

-Labor and Overhead

https://quizlet.com/324741590/chapter-2-accounting-for-materials-flash-cards/

5.) It is a group of individual cost items, or an account in which variety of similar costs are accumulated.

-Cost pool

6.) Jackson manufactures products X and Y, applying overhead of the basic of labor hours X, a low-volume…

- X-undercosted, Y-Overcosted

7.) The two main advantages of using predetermined factory overhead rates are to provide more accurate unit cost
information and to:

-provide costs information on a timely basis

8.) Under a backflush accounting system, the ff. entry is made when products are completed:

- Debit Finished Goods Credit Raw and IN Process Conversion Cost

9.) Under-applied factory overhead related to a significant decrease in production should be charged to:

- WIP, FG, COGS

10.) When rework occurs because of some action taken by the customer, the cost of the rework should be

-Work in Process

11.) When spoilage occurs because of some internal failure, the unrecoverable cost should be charged to:

-Factory Overhead Control

12.)

-credits to COGS, Finished Goods Inventory, and WIP

13.) Which of the following choices correctly depicts a cost that arises from a (a)batch-level activity from a (b)plant-
activity level?

-Inspection and Property Taxes

14.) Which of the following is not true about backflush costing?

- Production costs are attached as they move through work in process

15.) Which of the ff. statements is correct?

-is a measure of activity, such as direct labor hours, machine hours…

PROBLEMS

1. 60000

2. 67500

3. 524000 524700

4. - 5. A - 1300 B - 340 C – 98

6. A - 56 B - 57.50

7. A - 13.3 B - 15.8

8. A - B - 397000 C –

9. 81000