Which of the following is NOT a characteristic of a process cost system?
Explanation
This question tests the key differences between job order and process cost systems. The distinguishing documents are the job cost sheet (for job order) and the production cost report (for process).
Other questions
Which of the following best describes a job order cost system?
What is the primary objective of both job order cost and process cost systems?
In the flow of costs for a job order system, what are the two major steps?
When Wallace Company purchased 2,000 lithium batteries at $5 per unit and 800 electronic modules at $40 per unit, for a total cost of $42,000 on account, what was the correct journal entry?
What is the purpose of a job cost sheet?
What is the relationship between the job cost sheets and the Work in Process Inventory account?
When Wallace Company used $24,000 of direct materials and $6,000 of indirect materials in January, the correct summary journal entry is:
Why do companies use a predetermined overhead rate rather than actual overhead costs to assign overhead to jobs?
Wallace Company expects annual overhead costs to be $280,000 and direct labor costs to be $350,000. What is its predetermined overhead rate based on direct labor cost?
When a job is completed and its costs are transferred to the next inventory stage, what is the correct journal entry?
When Wallace Company sells Job No. 101, which cost $39,000, on account for $50,000, which of the following entries is correct?
What does it mean if Manufacturing Overhead has a debit balance at the end of the year?
If Wallace Company has a $2,500 credit balance in Manufacturing Overhead at year-end, what is the adjusting entry to eliminate this balance?
In a service company like Dorm Decor that uses job order costing, what account is used that is analogous to the Work in Process Inventory account?
One of the primary advantages of a job order cost system compared to a process cost system is that it:
Kwik Kopy Company expects total overhead costs of $290,000 and machine usage of 125,000 hours for the year. What is its service overhead rate per machine hour?
Kwik Kopy Company's predetermined overhead rate is $2.32 per machine hour. During the year, $295,000 of overhead costs are incurred and 130,000 hours are used. What is the amount of under- or overapplied overhead?
Historically, what was the most common activity base used by companies to apply manufacturing overhead?
Which document authorizes the issuance of raw materials from the storeroom to a specific job?
What are the three cost components accumulated in the Factory Labor account?
If Cardella Company's predetermined overhead rate is 80% of direct labor costs, and direct labor for Job A16 is $52,000, how much overhead is applied to Job A16?
Cardella Company completed Job A16. The costs for the job were: direct materials $27,000, direct labor $52,000, and manufacturing overhead $41,600. What is the total cost of Job A16?
At the end of January, Wallace Company's Work in Process Inventory account has a balance of $74,400. This balance should equal:
Which of the following would NOT be a reason for the materials quantity variance in the Xonic Tonic example?
In the direct labor variances matrix, what does the 'Actual Hours x Standard Rate' calculation represent?
For the month of June, the cost of goods manufactured schedule for Wallace Company would show which of the following amounts for 'Total manufacturing costs'?
If a company has a materials price variance of $420 U and a materials quantity variance of $600 U, what is the total materials variance?
The responsibility for a labor quantity variance generally resides with the:
What is the primary benefit of activity-based costing (ABC) when used in conjunction with a job order or process cost system?
If a job is sold, the cost of the job is transferred to:
In the Xonic Tonic example, what is the standard direct materials cost per gallon?
In the Xonic Tonic example, what is the standard direct labor cost per gallon?
For the month of June, Xonic incurred total actual costs of $55,000 to produce 1,000 gallons. The total standard cost for this production was $52,000. What is the total variance?
What is the formula for the materials price variance?
In producing 1,000 gallons of Xonic Tonic, the company used 4,200 pounds of materials when the standard was 4,000 pounds. The standard price is $3.00 per pound. What is the materials quantity variance?
A favorable labor price variance of $420 and an unfavorable labor quantity variance of $1,500 results in what total labor variance?
What is the formula for the total overhead variance?
In the income statement prepared for management under a standard cost system, how are variances typically disclosed?
In the Xonic income statement shown in Illustration 25-27, what is the cost of goods sold at standard?
What is the primary difference between a standard and a budget?
Ideal standards represent:
The standard direct materials price standard should be based on the:
What is included in the direct materials quantity standard?
A standard cost card for a product shows:
A favorable materials price variance could be caused by:
An unfavorable labor quantity variance might be caused by:
For its product, Ridette Inc. has a standard labor quantity of 0.25 hours and a standard rate of $13.00 per hour. What is the standard labor cost per unit?
What is the primary objective of a balanced scorecard?
Under a standard cost accounting system, an entry to record the purchase of raw materials might include a debit or credit to which account that would not appear under a system using only actual costs?