A Salesperson Calling on Supermarkets to Take Repeat Orders Is

question 143

True/False

A salesperson calling on supermarkets to take repeat orders is called an order taker.

Comprehend how cash transactions are recorded in job-order costing, including payments to creditors, labor, and utility costs.

Know how to apply manufacturing overhead to production using a predetermined overhead rate and understand the treatment of overapplied or underapplied overhead.

Understand how job-order costing is used to prepare key financial statements such as Balance Sheets, Income Statements, and Schedules of Cost of Goods Manufactured and Sold.

Recognize the accounting treatment of direct labor, direct materials (including raw material purchases), and manufacturing overhead within job-order costing.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on output levels.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost, based on standard prices and quantities.

Standard Costs

Predetermined or estimated costs used for budgeting and measuring performance, typically under ideal operating conditions.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, based on budgeted or planned amounts.