Match the terms with the definitions.
-All manufacturing costs other than direct materials and direct labor.

Question

Quizplus · Accepted Answer

Factory overhead refers to all manufacturing costs other than direct materials and direct labor, such as rent, utilities, and depreciation.

Answer: I 
 Indirect labor refers to employees who do not directly produce the product or service, such as maintenance workers or supervisors.

Answer: F 
 The predetermined overhead rate is calculated by dividing the estimated total factory overhead costs by the estimated total amount of the allocation base (such as direct labor hours or machine hours).

Answer: G 
 Materials inventory refers to the raw materials and supplies that a company has on hand to use in production.

Answer: C 
 Direct labor refers to the wages and salaries paid to employees who actually work on the product or service being produced.

Answer: D 
 Underapplied overhead occurs when a company applies less overhead to their products or services than what was actually incurred, resulting in a lower cost of goods sold and a higher gross profit.

Answer: J 
 The job cost ledger is used to track the costs incurred on a specific job or project, including direct materials, direct labor, and factory overhead.

Answer: A 
 A cost accounting system is used to track and analyze all the costs associated with producing a product or service, including indirect materials and indirect labor.

Answer: B 
 A daily time sheet is used to track the amount of time employees spend on different tasks, including direct labor on specific jobs or projects.

Answer: H 
 The finished goods ledger is used to track the costs and quantities of finished products that are ready to be sold to customers.

Match the Terms with the Definitions