Manufacturing Overhead Accounting- Actual and Applied
ADAPTED: Pedro P. Guerrero, Cost Accounting – Principles and Procedural Applications – 2014 – 2015
Edition
MULTIPLE CHOICE:
1. Costs that are not conveniently identified with particular orders or units of products.
a. Manufacturing overhead
b. Direct labor
c. Direct materials
d. Manufacturing costs
Answer: A. Manufacturing overhead
2. What costing system is used to avoid any delay in the costing of jobs as experienced in actual
costing?
a. Process costing
b. Job order costing
c. Historical costing
d. Normal costing
Answer: D. NORMAL COSTING
3. What costing system is used to allocate overhead with the use of a predetermined overhead
rate determined at the beginning of the year based on budgets.
a. Normal costing
b. Actual costing
c. Job order costing
d. Process costing
Answer: A. NORMAL COSTING
4. A credit balance in manufacturing overhead control account is:
a. Over applied overhead
b. Under applied overhead
c. Idle capacity variance
d. Spending variance
Answer: A. Over applied overhead
5. A debit balance in the manufacturing overhead control account is:
a. Over applied overhead
b. Under applied
c. Idle capacity variance
d. Spending variance
Answer: B. Under applied
6. Over applied manufacturing overhead would result if:
a. Manufacturing overhead costs incurred were less than costs charged to production.
b. Manufacturing overhead costs incurred were unreasonably large in relation to units
produced.
