ACC 213 Chap. 3

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product

A costing system used in situations where a single, homogeneous product (such as cement or flour) is produced for long periods of time

A costing system used in situations where many different products, jobs, or services are produced each period

document that lists the type and quantity of each type of direct material needed to complete a unit of product

document that specifies the type and quantity of materials to be drawn from the storeroom and identifies the job that will be charged for the cost of the materials

A form prepared for a job that records the materials, labor, and manufacturing overhead costs charged to that job

document that is used to record the amount of time an employee spends on various activities

T/F

Choice of allocation base should be made based on whether the base actually drives the cost being allocated

A factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes overhead costs

T/F

Manufacturing overhead is an example of a clearing account

A credit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost applied to Work in Process exceeds the amount of overhead cost actually incurred during a period

A debit balance in the Manufacturing Overhead account that occurs when the amount of overhead cost actually incurred exceeds the amount of overhead cost applied to Work in Process during a period

A single predetermined overhead rate that is used throughout a plant

A costing system with multiple overhead cost pools and a different predetermined overhead rate for each cost pool, rather than a single predetermined overhead rate for the entire company. Each production department may be treated as a separate overhead cost pool.