The Hybrid-Costing System That Applies to Batches of Similar,but Not

question 40

Multiple Choice

The hybrid-costing system that applies to batches of similar,but not identical products is the:

• A)job-costing system.
• B)process-costing system.
• C)product-costing system.
• D)operation-costing system.
• E)manufacturing-costing system.

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Definitions:

Underapplied Overhead

Occurs when the allocated manufacturing overhead cost is less than the actual overhead incurred, leading to under-recovered expenses.

Manufacturing Overhead

This includes all the indirect costs associated with manufacturing a product, such as utilities, indirect labor, and maintenance of equipment.

Manufacturing Overhead Applied

The process of assigning manufacturing overhead costs to the units produced, based on a predetermined overhead rate.

Work in Process Account

An inventory account that tracks the costs of products in various stages of completion but not yet finished.