What are three methods traditionally used for applying factory overhead to jobs? Dis- cuss the allocation base used in each method

  1. What are factory overhead expenses, and what distinguishes them from other manufacturing costs? What other terms are used to describe factory overhead expenses
  2. What are three categories of factory over- head expenses? Give examples of each.
  3. What are the distinguishing characteristics of variable, fixed, and semivariable factory overhead costs?
  4. When a product’s cost is composed of fixed and variable costs, what effect does the increase or decrease in production have on per unit cost?
  5. What effect does a change in volume have on total variable, fixed, and semivariable costs?
  6. Distinguish between a step-variable cost and a step-fixed cost
  7. What are the advantages and disadvantages of the scattergraph method as com- pared to the high-low method?
  8. Differentiate between an independent variable and a dependent variable and give an example of each
  9. What are two types of departments found in a factory? What is the function or purpose of each?
  10. What are the shortcomings of waiting until the actual factory overhead expenses are known before recording such costs on the job cost sheets?
  11. What are the two types of budget data needed to compute predetermined over- head rates?
  12. What are three methods traditionally used for applying factory overhead to jobs? Dis- cuss the allocation base used in each method
  13. How does activity-based costing differ from traditional methods of applying over- head to products?
  14. What steps must a company take to successfully employ activity-based costing?
  15. What is the relationship between activity- based costing and activity-based management?
  16. What are the classifications of cost commonly used in activity-based costing? Give examples of each.
  17. If the factory overhead control account has a debit balance of $1,000 at the end of the first month of the fiscal year, has the over- head been under- or overapplied for the month? What are some probable causes for the debit balance?
  18. If the factory overhead control account has a credit balance of $2,000 at the end of the first month of the fiscal year, has the overhead been under- or overapplied for the month? What are some probable causes for the credit balance?
  19. What are two ways that an under- or over- applied factory overhead balance can be dis- posed of at the end of a fiscal period? How can one decide which method to choose?