Ch2, Job-Order Costing Calculating Unit Product Costs Part 12

[QUESTION] 202. The amount of overhead applied in the Assembly Department to Job P131 is closest to: A) $228.00 B) $558.00 C) $65,500.00 D) $786.00 Answer: D Difficulty: 1 Easy Learning Objective: 02-01 Learning Objective: 02-02 Learning Objective: 02-04 Blooms: Apply AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: Assembly Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct laborhour × Total direct labor-hours in the department) = $46,500 + ($3.80 per direct labor-hour × 5,000 direct labor-hours) = $46,500 + $19,000 = $65,500 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $65,500 ÷5,000 direct labor-hours = $13.10 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $13.10 per direct labor-hour × 60 direct labor-hours = $786 Reference: CH02-Ref36 Eisentrout 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: Machine-hours.................................................................. Direct labor-hours.............................................................. Total fixed manufacturing overhead cost........................... Variable manufacturing overhead per machine-hour......... Variable manufacturing overhead per direct labor-hour..... Machining 16,000 2,000 $104,000 $2.10 Customizing 11,000 6,000 $56,400 $3.30 During the current month the company started and finished Job T272. The following data were recorded for this job: Job T272: Machine-hours............. Direct labor-hours......... Machining 60 10 Customizing 30 60 [QUESTION] 203. The estimated total manufacturing overhead for the Machining Department is closest to: A) $137,600 B) $104,000 C) $33,600 D) $310,933 Answer: A Difficulty: 1 Easy Learning Objective: 02-01 Learning Objective: 02-04 Topic Area: Blooms: Apply AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Refer To: CH02-Ref36 Feedback: Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $104,000 + ($2.10 per machine-hour × 16,000 machine-hours) = $104,000 +$33,600 = $137,600 [QUESTION] 204. The estimated total manufacturing overhead for the Customizing Department is closest to: A) $40,950 B) $19,800 C) $56,400 D) $76,200 Answer: D Difficulty: 1 Easy Learning Objective: 02-01 Learning Objective: 02-04 Blooms: Apply AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Refer To: CH02-Ref36 Feedback: Customizing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct laborhour × Total direct labor-hours in the department) = $56,400 + ($3.30 per direct labor-hour × 6,000 direct labor-hours) = $56,400 + $19,800 = $76,200 [QUESTION] 205. The predetermined overhead rate for the Machining Department is closest to: A) $22.93 per machine-hour B) $6.50 per machine-hour C) $2.10 per machine-hour D) $8.60 per machine-hour Answer: D Difficulty: 1 Easy Learning Objective: 02-01 Learning Objective: 02-04 Blooms: Apply AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Refer To: CH02-Ref36 Feedback: Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $104,000 + ($2.10 per machine-hour × 16,000 machine-hours) = $104,000 +$33,600 = $137,600 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $137,600 ÷ 16,000 machine-hours = $8.60 per machine-hour [QUESTION] 206. The predetermined overhead rate for the Customizing Department is closest to: A) $3.30 per direct labor-hour B) $12.70 per direct labor-hour C) $9.40 per direct labor-hour D) $4.76 per direct labor-hour Answer: B Difficulty: 1 Easy Learning Objective: 02-01 Learning Objective: 02-04 Blooms: Apply AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Refer To: CH02-Ref36 Feedback: Customizing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct laborhour × Total direct labor-hours in the department) = $56,400 + ($3.30 per direct labor-hour × 6,000 direct labor-hours) = $56,400 + $19,800 = $76,200 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $76,200 ÷6,000 direct labor-hours = $12.70 per direct labor-hour [QUESTION] 207. The amount of overhead applied in the Machining Department to Job T272 is closest to: A) $137,600.00 B) $126.00 C) $516.00 D) $564.00 Answer: C Difficulty: 1 Easy Learning Objective: 02-01 Learning Objective: 02-02 Learning Objective: 02-04 Blooms: Apply AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Refer To: CH02-Ref36 Feedback: Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $104,000 + ($2.10 per machine-hour × 16,000 machine-hours) = $104,000 +$33,600 = $137,600 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $137,600 ÷ 16,000 machine-hours = $8.60 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $8.60 per machine-hour × 60 machine-hours = $516 [QUESTION] 208. The amount of overhead applied in the Customizing Department to Job T272 is closest to: A) $76,200.00 B) $762.00 C) $564.00 D) $198.00 Answer: B Difficulty: 1 Easy Learning Objective: 02-01 Learning Objective: 02-02 Learning Objective: 02-04 Blooms: Apply AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: Customizing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct laborhour × Total direct labor-hours in the department) = $56,400 + ($3.30 per direct labor-hour × 6,000 direct labor-hours) = $56,400 + $19,800 = $76,200 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $76,200 ÷6,000 direct labor-hours = $12.70 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $12.70 per direct labor-hour × 60 direct labor-hours = $762 Reference: CH02-Ref37 Stoke Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department’s predetermined overhead rate is based on machine-hours and the Assembly 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: Machine-hours.................................................................. Direct labor-hours.............................................................. Total fixed manufacturing overhead cost........................... Variable manufacturing overhead per machine-hour......... Variable manufacturing overhead per direct labor-hour..... Forming 20,000 2,000 $138,000 $2.30 Assembly 15,000 7,000 $58,100 $3.00 During the current month the company started and finished Job A460. The following data were recorded for this job: Job A460: Machine-hours............. Direct labor-hours......... Forming 80 30 Assembly 10 50 [QUESTION] 209. The amount of overhead applied in the Forming Department to Job A460 is closest to: A) $184,000.00 B) $184.00 C) $736.00 D) $664.00 Answer: C Difficulty: 1 Easy Learning Objective: 02-01 Learning Objective: 02-02 Learning Objective: 02-04 Blooms: Apply AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Refer To: CH02-Ref37 Feedback: Forming Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $138,000 + ($2.30 per machine-hour × 20,000 machine-hours) = $138,000 +$46,000 = $184,000 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $184,000 ÷ 20,000 machine-hours = $9.20 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $9.20 per machine-hour × 80 machine-hours = $736 [QUESTION] 210. The amount of overhead applied in the Assembly Department to Job A460 is closest to: A) $415.00 B) $150.00 C) $565.00 D) $79,100.00 Answer: C Difficulty: 1 Easy Learning Objective: 02-01 Learning Objective: 02-02 Learning Objective: 02-04 Blooms: Apply AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: Assembly Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct laborhour × Total direct labor-hours in the department) = $58,100 + ($3.00 per direct labor-hour × 7,000 direct labor-hours) = $58,100 + $21,000 = $79,100 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $79,100 ÷7,000 direct labor-hours = $11.30 per direct labor-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $11.30 per direct labor-hour × 50 direct labor-hours = $565 Reference: CH02-Ref38 Vanliere Corporation has two production departments, Machining and Finishing. 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 Finishing 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: Machine-hours.................................................................. Direct labor-hours.............................................................. Total fixed manufacturing overhead cost........................... Variable manufacturing overhead per machine-hour......... Variable manufacturing overhead per direct labor-hour..... Machining 19,000 3,000 $138,700 $1.90 Finishing 11,000 6,000 $52,800 $3.80 During the current month the company started and finished Job A803. The following data were recorded for this job: Job A803: Machine-hours............. Direct labor-hours......... Machining 90 20 Finishing 20 60 [QUESTION] 211. The predetermined overhead rate for the Finishing Department is closest to: A) $8.80 per direct labor-hour B) $3.98 per direct labor-hour C) $12.60 per direct labor-hour D) $3.80 per direct labor-hour Answer: C Difficulty: 1 Easy Learning Objective: 02-01 Learning Objective: 02-04 Blooms: Apply AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Refer To: CH02-Ref38 Feedback: Finishing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department) = $52,800 + ($3.80 per direct labor-hour × 6,000 direct labor-hours) = $52,800 + $22,800 = $75,600 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $75,600 ÷6,000 direct labor-hours = $12.60 per direct labor-hour [QUESTION] 212. The amount of overhead applied in the Machining Department to Job A803 is closest to: A) $828.00 B) $792.00 C) $171.00 D) $174,800.00 Answer: A Difficulty: 1 Easy Learning Objective: 02-01 Learning Objective: 02-02 Learning Objective: 02-04 Blooms: Apply AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Refer To: CH02-Ref38 Feedback: Machining Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $138,700 + ($1.90 per machine-hour × 19,000 machine-hours) = $138,700 +$36,100 = $174,800 Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base incurred = $174,800 ÷ 19,000 machine-hours = $9.20 per machine-hour Overhead applied to a particular job = Predetermined overhead rate × Amount of the allocation base incurred by the job = $9.20 per machine-hour × 90 machine-hours = $828 Reference: CH02-Ref39 Ahlheim Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department’s predetermined overhead rate is based on machine-hours and the Assembly 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: Machine-hours.................................................................. Forming 16,000 Assembly 15,000 Direct labor-hours.............................................................. Total fixed manufacturing overhead cost........................... Variable manufacturing overhead per machine-hour......... Variable manufacturing overhead per direct labor-hour..... 2,000 $102,400 $2.30 6,000 $55,200 $4.50 During the current month the company started and finished Job T924. The following data were recorded for this job: Job T924: Machine-hours............. Direct labor-hours......... Direct materials............ Direct labor cost........... Forming 70 30 $870 $630 Assembly 20 40 $385 $840 [QUESTION] 213. The estimated total manufacturing overhead for the Forming Department is closest to: A) $36,800 B) $102,400 C) $309,867 D) $139,200 Answer: D Difficulty: 1 Easy Learning Objective: 02-01 Learning Objective: 02-04 Topic Area: Blooms: Apply AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Refer To: CH02-Ref39 Feedback: Forming Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department) = $102,400 + ($2.30 per machine-hour × 16,000 machine-hours) = $102,400 +$36,800 = $139,200 [QUESTION] 214. The estimated total manufacturing overhead for the Assembly Department is closest to: A) $27,000 B) $55,200 C) $82,200 D) $47,700 Answer: C Difficulty: 1 Easy Learning Objective: 02-01 Learning Objective: 02-04 Blooms: Apply AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Refer To: CH02-Ref39 Feedback: Assembly Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct laborhour × Total direct labor-hours in the department) = $55,200 + ($4.50 per direct labor-hour × 6,000 direct labor-hours) = $55,200 + $27,000 = $82,200