Question 1

Morataya Corporation has two manufacturing departments--Machining and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:  During the most recent month, the company started and completed two jobs--Job B and Job G. There were no beginning inventories. Data concerning those two jobs follow:
 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. That predetermined manufacturing overhead rate is closest to:

Accepted Answer

The answer of Morataya Corporation has two manufacturing departments--Machining and...

Question 2

Morataya Corporation has two manufacturing departments--Machining and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:  During the most recent month, the company started and completed two jobs--Job B and Job G. There were no beginning inventories. Data concerning those two jobs follow:
 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The amount of manufacturing overhead applied to Job B is closest to: (Round your intermediate calculations to 2 decimal places.)

Accepted Answer

First, we need to calculate the predetermined overhead rate for the entire company using the given data:
Predetermined overhead rate = Total estimated manufacturing overhead cost / Total estimated machine-hours
Predetermined overhead rate = ($246,400 + $72,800) / (8,000 + 5,200)
Predetermined overhead rate = $319,200 / 13,200
Predetermined overhead rate = $24.24 per machine-hour

Next, we need to calculate the amount of manufacturing overhead applied to each job using the predetermined overhead rate and the actual machine-hours used for each job.

For Job B: 
Manufacturing overhead applied = Predetermined overhead rate x Actual machine-hours used 
Manufacturing overhead applied = $24.24 x 1,320 
Manufacturing overhead applied = $31,996.80
Therefore, the closest answer is A) $31,392.

For Job G: 
Manufacturing overhead applied = Predetermined overhead rate x Actual machine-hours used 
Manufacturing overhead applied = $24.24 x 800 
Manufacturing overhead applied = $19,392

The total manufacturing overhead applied to both jobs is:
Total manufacturing overhead applied = $31,996.80 + $19,392
Total manufacturing overhead applied = $51,388.80

Therefore, the amount of manufacturing overhead applied to Job B is closest to $31,392, and the best choice is C) $39,240 as this is the closest given option to the actual amount applied.

Question 3

Huang Aerospace Corporation manufactures aviation control panels in two departments, Fabrication and Assembly. In the Fabrication department, Huang uses a predetermined overhead rate of $30 per machine-hour. In the Assembly department, Huang uses a predetermined overhead rate of $12 per direct labor-hour. During the current year, Job #X2984 incurred the following number of hours in each department:  What is the total amount of manufacturing overhead that Huang should have applied to Job #X2984 during the current year?

Accepted Answer

The answer of Huang Aerospace Corporation manufactures aviation control panels...

Question 4

Housholder Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The company has provided the following data for the most recent year.  The predetermined overhead rate is closest to:

Accepted Answer

The answer of Housholder Corporation uses a predetermined overhead rate...

Question 5

Camm Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:  Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. The departmental predetermined overhead rate in the Assembly Department is closest to:

Accepted Answer

To calculate the predetermined overhead rate for each department, we need to divide the estimated annual overhead costs by the estimated annual machine-hours in each department.

For the Forming Department: 
Predetermined overhead rate = $427,500 / 85,500 machine-hours = $5.00 per machine-hour

For the Assembly Department: 
Predetermined overhead rate = $306,000 / 63,750 machine-hours = $4.80 per machine-hour

Therefore, the closest choice to the departmental predetermined overhead rate in the Assembly Department is C) $4.80.

Question 6

Odonnel Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $36,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 10,000 direct labor-hours.The predetermined overhead rate is closest to:

Accepted Answer

The predetermined overhead rate is calculated by adding the total fixed manufacturing overhead cost to the total variable manufacturing overhead cost (which is the variable rate multiplied by the estimated total direct labor-hours), and then dividing by the estimated total direct labor-hours. Here, it's ($36,000 + ($2.80 * 10,000)) / 10,000 = ($36,000 + $28,000) / 10,000 = $64,000 / 10,000 = $6.40 per direct labor-hour.

Question 7

Dejarnette Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:  The predetermined overhead rate is closest to:

Accepted Answer

The answer of Dejarnette Corporation uses a job-order costing system...

Question 8

Grib Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The predetermined overhead rates for the year are 200% of direct labor cost for Department A and 50% of direct labor cost for Department B. Job 436, started and completed during the year, was charged with the following costs:  The total manufacturing cost assigned to Job 436 was:

Accepted Answer

The answer of Grib Corporation uses a predetermined overhead rate...

Question 9

Kavin Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The company has provided the following data for the most recent year.  The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to:

Accepted Answer

The answer of Kavin Corporation uses a predetermined overhead rate...

Question 10

Sargent Corporation applies overhead cost to jobs on the basis of 80% of direct labor cost. If Job 210 shows $10,000 of manufacturing overhead cost applied, how much was the direct labor cost on the job?

Accepted Answer

The direct labor cost is calculated by dividing the manufacturing overhead cost by the overhead rate. Given that the overhead rate is 80% (or 0.8) of direct labor cost, and the manufacturing overhead cost applied is $10,000, the direct labor cost is $10,000 / 0.8 = $12,500.

Question 11

Sargent Corporation applies overhead cost to jobs on the basis of 90% of direct labor cost. If Job 210 shows $18,810 of manufacturing overhead cost applied, how much was the direct labor cost on the job?

Accepted Answer

The direct labor cost is calculated by dividing the manufacturing overhead cost applied by the overhead rate. Given that the overhead rate is 90% of direct labor cost, we can set up the equation: $18,810 = 90% of direct labor cost. Solving for direct labor cost gives us $20,900.

Question 12

Job 910 was recently completed. The following data have been recorded on its job cost sheet:  The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $15 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be:

Accepted Answer

The answer of Job 910 was recently completed. The following...

Question 13

The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $3,044. A total of 46 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $15 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $13 per machine-hour. The total cost for the job on its job cost sheet would be:

Accepted Answer

Direct materials cost = $3,044 
Direct labor cost = 46 hours x $15 per hour = $690 
Manufacturing overhead cost = 104 machine-hours x $13 per machine-hour = $1,352

Total cost for the job = Direct materials cost + Direct labor cost + Manufacturing overhead cost 
= $3,044 + $690 + $1,352 
= $5,086

Therefore, the total cost for the job on its job cost sheet would be $5,086, which is option D.

Question 14

Prayer Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:  The estimated total manufacturing overhead for the Machining Department is closest to:

Accepted Answer

The answer of Prayer Corporation has two production departments, Machining...

Question 15

The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,057. A total of 37 direct labor-hours and 194 machine-hours were worked on the job. The direct labor wage rate is $24 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $33 per machine-hour. The total cost for the job on its job cost sheet would be:

Accepted Answer

The answer of The following data have been recorded for...

Question 16

Job 910 was recently completed. The following data have been recorded on its job cost sheet:  The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $23 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be:

Accepted Answer

The answer of Job 910 was recently completed. The following...

Question 17

Dejarnette Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:  The estimated total manufacturing overhead is closest to:

Accepted Answer

The predetermined overhead rate formula is:

Predetermined overhead rate = Estimated total manufacturing overhead/Estimated total machine-hours

Plugging in the given data:

$832,000 / 125,000 machine-hours = $6.656 per machine-hour

To find the estimated total manufacturing overhead, we can use the actual machine-hours used for each job and multiply it by the predetermined overhead rate. However, since we do not have that information, we can use the estimated total machine-hours instead.

The estimated total manufacturing overhead is:

$6.656 per machine-hour x 100,000 machine-hours = $665,600

The closest choice is C) $664,000.

Question 18

Odonnel Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $36,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 10,000 direct labor-hours.The estimated total manufacturing overhead is closest to:

Accepted Answer

The estimated total manufacturing overhead is calculated by adding the total fixed manufacturing overhead cost to the total variable manufacturing overhead cost. The total fixed manufacturing overhead cost is given as $36,000. The total variable manufacturing overhead cost is calculated by multiplying the variable manufacturing overhead rate ($2.80) by the total direct labor-hours (10,000), which equals $28,000 ($2.80 * 10,000). Therefore, the estimated total manufacturing overhead is $36,000 (fixed) + $28,000 (variable) = $64,000.

Question 19

Morataya Corporation has two manufacturing departments--Machining and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:  During the most recent month, the company started and completed two jobs--Job B and Job G. There were no beginning inventories. Data concerning those two jobs follow:
 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The amount of manufacturing overhead applied to Job G is closest to: (Round your intermediate calculations to 2 decimal places.)

Accepted Answer

The answer of Morataya Corporation has two manufacturing departments--Machining and...

Question 20

Kreuzer Corporation is using a predetermined overhead rate of $22.30 per machine-hour that was based on estimated total fixed manufacturing overhead of $446,000 and 20,000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $409,000 and 18,200 total machine-hours during the period. The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to:

Accepted Answer

The applied manufacturing overhead is calculated by multiplying the predetermined overhead rate by the actual machine-hours: $22.30 * 18,200 = $405,860.

Quiz 2: Job-Order Costing: Calculating Unit Product Costs

Housholder Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The company has provided the following data for the most recent year. The predetermined overhead rate is closest to:

Dejarnette Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: The predetermined overhead rate is closest to:

Sargent Corporation applies overhead cost to jobs on the basis of 80% of direct labor cost. If Job 210 shows $10,000 of manufacturing overhead cost applied, how much was the direct labor cost on the job?

Sargent Corporation applies overhead cost to jobs on the basis of 90% of direct labor cost. If Job 210 shows $18,810 of manufacturing overhead cost applied, how much was the direct labor cost on the job?

Dejarnette Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: The estimated total manufacturing overhead is closest to: