1. A measure of activity such as direct labor-hours or machine hours that is used to
assign costs to cost objects.
Cost Driver
Absorption Costing
Allocation Base
Job Cost Sheet
2. A factor, such as machine hours, beds occupied, etc that causes overhead costs
Job cost sheet
Allocation base
Cost driver
Predetermined overhead rate
3.A rate used to charge manufacturing overhead costs to jobs that is established in
advance fo reach period. It is computed by dividing the estimated total manufacturing
cost for the period by the estimated total amount of allocation base.
Allocation base
Materials requisition form
Cost driver
Predetermined overhead rate
4. A form that records the direct materials, direct labor, and MOH charged to a job.
Normal Cost System
Allocation Base
Cost Driver
Job Cost Sheet
5.A document that shows the quantity of each type of direct material required to
make a product
Absorption Costing
Materials Requisition Form
Job Cost Sheet
Bill of Materials
6. A costing system in which overhead rates are applied to a job by multiplying a
predetermined overhead rate by the actual amount of the allocation based incurred
by the job.
Normal Cost System
Job Cost Sheet
Cost Driver
Absorption Costing
7. A costing method that includes all manufacturing costs: direct costs, direct labor,
and both variable and fixed manufacturing costs.
Absorption Costing
Materials Requisition Form
Allocation Base
Cost Driver
8. A document that specifies the type and quantity of materials to be drawn from the
storeroom and that identifies the job that wil be charged for the cost of those
materials
Job cost sheet
Materials requisition form
Predetermined overhead rate
Bill of materials
9. A debit balance in MOH account that occurs when the amount of overhead cost
actually incurred exceeds the amont of overhead costs applied to WIP during a
period.
Job Cost Sheet
Materials Requisition Form
Cost Driver
Underapplied Overhead
10. A credit balance in the Manufacturing Overhead account that occurs when the
amount of overhead cost applied to WIP exceeds the amount actually incurred during
a period.
Normal Cost System
Underapplied Overhead
Overapplied Overhead
Absorption Costing