COMMERCE 2AB3 Study Guide - Final Guide: Direct Labor Cost, Synthetic Rubber, Oil Refinery

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 2AB3
• Professor: Karim Karim

Document Summary

True/false: process costing is used in those situations where many different products or services are produced each period to customer specifications. Level: medium lo: 2 ans: t: in a job-order cost system, indirect labor is assigned to a job by using the labor time ticket as a source document. Level: medium lo: 2 ans: f: the formula for computing the predetermined overhead rate is: Estimated total units in base estimated total manufacturing costs. Level: easy lo: 3 ans: f: the fact that one department may be labor intensive while another department is machine intensive may explain in part the existence of multiple predetermined overhead rates in larger companies. Level: easy lo: 3 ans: t: if a company closes any underapplied or overapplied overhead to the cost of goods sold account, then. Cost of goods sold will be credited if manufacturing overhead is overapplied for the period.