Ch 2

Question 1

What is a bill of materials?

Answer 1

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

Question 2

What is the materials requisition form?

Answer 2

A document that specifies the type and quantity of materials to be drawn from the storeroom

Question 3

How do you compute the predetermined overhead rate?

Answer 3

(Est manufacturing overhead)/(Est amount allocated)

Question 4

How do you calculate how much overhead cost is assigned to each job?

Answer 4

Overhead applied = predetermined overhead rate x Amount of allocation incurred by the job

Question 5

True or false: The cost of a completed job in a job order costing system typically consists of the actual direct materials cost of the job. the actual direct materials cost, the actual direct labor cost, and the actual MoH

Answer 5

False. You use the formula:

Predetermined overhead rate x amount allocated