Deck 2: Job-Order Costing: Calculating Unit Production Costs

Question 1

An employee time ticket is an hour-by-hour summary of the employee's activities throughout the day.

Answer 1

True

Question 2

In absorption costing,nonmanufacturing costs are assigned to units of product.

Answer 2

False

Question 3

If the overhead rate is computed annually based on the actual costs and activity for the year,the manufacturing overhead assigned to any particular job can be computed as soon as the job is completed.

Answer 3

False

Question 4

The formula for computing the predetermined overhead rate is:
Predetermined overhead rate = Estimated total amount of the allocation base ÷ Estimated total manufacturing overhead cost

Question 5

Job-order costing systems often use allocation bases that do not reflect how jobs actually use overhead resources.

Question 6

In a job-order costing system,costs are traced to individual units of product.The sum total of such traced costs is called the unit product cost.

Question 7

A job cost sheet is used to record how much a customer pays for the job once the job is completed.

Question 8

An employee time ticket is an hour-by-hour summary of the employee's activities throughout the day.

Question 9

If a job is not completed at year end,then no manufacturing overhead cost would be applied to that job when a predetermined overhead rate is used.

Question 10

The costs attached to products that have not been sold are included in ending inventory on the balance sheet.

Question 11

In a job-order cost system,indirect labor is assigned to a job using information from the employee time ticket.

Question 12

A cost driver is a factor,such as machine-hours,beds occupied,computer time,or flight-hours,that causes direct costs.

Question 13

Job cost sheets contain entries for actual direct material,actual direct labor,and actual manufacturing overhead cost incurred in completing a job.

Question 14

The fact that one department may be labor intensive while another department is machine intensive explains in part why multiple predetermined overhead rates are often used in larger companies.

Question 15

Generally speaking,when going through the process of computing a predetermined overhead rate,the estimated total manufacturing overhead cost is determined before estimating the amount of the allocation base.

Question 16

The amount of overhead applied to a particular job equals the actual amount of overhead caused by the job.

Question 17

If the allocation base in the predetermined overhead rate does not drive overhead costs,it will nevertheless provide reasonably accurate unit product costs because of the averaging process.

Question 18

The appeal of using multiple departmental overhead rates is that they presumably provide a more accurate accounting of the costs caused by jobs.

Question 19

A company will improve job cost accuracy by using multiple overhead rates even if it cannot identify more than one overhead cost driver.

Question 20

Actual overhead costs are not assigned to jobs in a job costing system.

Question 21

The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs.The predetermined overhead rate is based on labor cost in Dept.A and on machine-hours in Dept.B.At the beginning of the year,the Corporation made the following estimates:
What predetermined overhead rates would be used in Dept.A and Dept.B,respectively?

A) 67% and $3.00
B) 150% and $5.00
C) 150% and $3.00
D) 67% and $5.00

Question 22

Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.The Corporation has provided the following estimated costs for next year:
Reamer estimates that 500 direct labor-hours and 1,000 machine-hours will be worked during the year.The predetermined overhead rate per hour will be:

A) $6.80 per machine-hour
B) $6.00 per machine-hour
C) $3.00 per machine-hour
D) $3.40 per machine-hour

Question 23

Which of the following statements about using a plantwide overhead rate based on direct labor is correct?

A) Using a plantwide overhead rate based on direct labor-hours will ensure that direct labor costs are correctly traced to jobs.
B) Using a plantwide overhead rate based on direct labor costs will ensure that direct labor costs will be correctly traced to jobs.
C) It is often overly simplistic and incorrect to assume that direct labor-hours is a company's only manufacturing overhead cost driver.
D) The labor theory of value ensures that using a plantwide overhead rate based on direct labor will do a reasonably good job of assigning overhead costs to jobs.

Question 24

In a job-order costing system that is based on machine-hours,which of the following formulas is correct?

A) Predetermined overhead rate = Actual manufacturing overhead ÷ Actual machine-hours
B) Predetermined overhead rate = Actual manufacturing overhead ÷ Estimated machine-hours
C) Predetermined overhead rate = Estimated manufacturing overhead ÷ Estimated machine-hours
D) Predetermined overhead rate = Estimated manufacturing overhead ÷ Actual machine-hours

Question 25

Baj 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 per machine-hour would be closest to:

A) $17.80
B) $19.49
C) $16.23
D) $17.77

Question 26

Valvano 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 total fixed manufacturing overhead cost of $440,000,variable manufacturing overhead of $2.20 per machine-hour,and 50,000 machine-hours.The estimated total manufacturing overhead is closest to:

A) $440,000
B) $110,000
C) $440,002
D) $550,000

Question 27

Longobardi Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year.At the beginning of the most recently completed year,the Corporation estimated the labor-hours for the upcoming year at 46,000 labor-hours.The estimated variable manufacturing overhead was $6.25 per labor-hour and the estimated total fixed manufacturing overhead was $1,026,260.The actual labor-hours for the year turned out to be 41,200 labor-hours.The predetermined overhead rate for the recently completed year was closest to:

A) $28.56 per labor-hour
B) $22.31 per labor-hour
C) $6.25 per labor-hour
D) $31.16 per labor-hour

Question 28

Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the most recently completed year appear below:
The predetermined overhead rate for the recently completed year was closest to:

A) $25.37 per machine-hour
B) $27.13 per machine-hour
C) $6.76 per machine-hour
D) $20.37 per machine-hour

Question 29

Most countries require some form of absorption costing for external reports.

Question 30

Which of the following is the correct formula to compute the predetermined overhead rate?

A) Predetermined overhead rate = Estimated total units in the allocation base ÷ Estimated total manufacturing overhead costs
B) Predetermined overhead rate = Estimated total manufacturing overhead costs ÷ Estimated total units in the allocation base
C) Predetermined overhead rate = Actual total manufacturing overhead costs ÷ Estimated total units in the allocation base
D) Predetermined overhead rate = Estimated total manufacturing overhead costs ÷ Actual total units in the allocation base.

Question 31

Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.At the beginning of the most recently completed year,the Corporation estimated the machine-hours for the upcoming year at 79,000 machine-hours.The estimated variable manufacturing overhead was $7.38 per machine-hour and the estimated total fixed manufacturing overhead was $2,347,090.The predetermined overhead rate for the recently completed year was closest to:

A) $37.09 per machine-hour
B) $36.07 per machine-hour
C) $7.38 per machine-hour
D) $29.71 per machine-hour

Question 32

Which of the following would usually be found on a job cost sheet under a normal cost system?

Question 33

Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the upcoming year appear below:
The predetermined overhead rate for the recently completed year was closest to:

A) $29.39 per machine-hour
B) $32.40 per machine-hour
C) $32.81 per machine-hour
D) $3.01 per machine-hour

Question 34

Steele Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.Steele Corporation has provided the following estimated costs for next year:
Steele estimates that 10,000 direct labor-hours and 16,000 machine-hours will be worked during the year.The predetermined overhead rate per hour will be:

A) $4.25
B) $8.00
C) $9.00
D) $10.25

Question 35

A bill of materials is a document that lists the type and quantity of each type of direct material needed to complete a unit of product.

Question 36

Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.The Corporation has provided the following estimated costs for the next year:
Jameson estimates that 20,000 direct labor-hours will be worked during the year.The predetermined overhead rate per hour will be:

A) $2.00 per direct labor-hour
B) $2.79 per direct labor-hour
C) $3.00 per direct labor-hour
D) $4.00 per direct labor-hour

Question 37

Assigning manufacturing overhead to a specific job is complicated by all of the below except:

A) Manufacturing overhead is an indirect cost that is either impossible or difficult to trace to a particular job.
B) Manufacturing overhead is incurred only to support some jobs.
C) Manufacturing overhead consists of both variable and fixed costs.
D) The average cost of actual fixed manufacturing overhead expenses will vary depending on how many units are produced in a period.

Question 38

Purves Corporation is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $121,000 and 10,000 direct labor-hours for the period.The company incurred actual total fixed manufacturing overhead of $113,000 and 10,900 total direct labor-hours during the period.The predetermined overhead rate is closest to:

A) $10.37
B) $12.10
C) $11.10
D) $11.30

Question 39

Dearden 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 total fixed manufacturing overhead cost of $144,000,variable manufacturing overhead of $2.00 per machine-hour,and 60,000 machine-hours.The predetermined overhead rate is closest to:

A) $2.40 per machine-hour
B) $6.40 per machine-hour
C) $4.40 per machine-hour
D) $2.00 per machine-hour

Question 40

Which of the following statements is not correct concerning multiple overhead rate systems?

A) A multiple overhead rate system is more complex than a system based on a single plantwide overhead rate.
B) A multiple overhead rate system is usually more accurate than a system based on a single plantwide overhead rate.
C) A company may choose to create a separate overhead rate for each of its production departments.
D) In departments that are relatively labor-intensive, their overhead costs should be applied to jobs based on machine-hours rather than on direct labor-hours.

Question 41

Juanita Corporation uses a job-order costing system and applies overhead on the basis of direct labor cost.At the end of October,Juanita had one job still in process.The job cost sheet for this job contained the following information:
An additional $100 of labor was needed in November to complete this job.For this job,how much should Juanita have transferred to finished goods inventory in November when it was completed?

A) $1,330
B) $500
C) $1,230
D) $1,730

Question 42

Laflame 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:

A) $273,000
B) $630,000
C) $357,004
D) $357,000

Question 43

Koelsch Corporation has two manufacturing departments--Molding and Customizing.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 F and Job K.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 and uses a markup of 50% on manufacturing cost to establish selling prices.The calculated selling price for Job K is closest to:

A) $72,561
B) $79,817
C) $24,187
D) $48,374

Question 44

Parido Corporation has two manufacturing departments--Casting 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 A and Job H.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 H is closest to:

A) $8,328
B) $26,372
C) $18,316
D) $18,044

Question 45

Session 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 the following data:
Recently,Job K913 was completed with the following characteristics:
The total job cost for Job K913 is closest to:

A) $6,060
B) $2,115
C) $6,765
D) $5,355

Question 46

Beat 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:
Recently,Job M759 was completed.It required 60 machine-hours.The amount of overhead applied to Job M759 is closest to:

A) $750
B) $516
C) $984
D) $234

Question 47

Almaraz Corporation has two manufacturing departments--Forming and Finishing.The company used the following data at the beginning of the year to calculate predetermined overhead rates:
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.That predetermined manufacturing overhead rate is closest to:

A) $6.62
B) $4.87
C) $4.10
D) $7.10

Question 48

Thach 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 total fixed manufacturing overhead cost of $665,000,variable manufacturing overhead of $3.00 per machine-hour,and 70,000 machine-hours.Recently,Job T321 was completed with the following characteristics:
The unit product cost for Job T321 is closest to:

A) $117.00
B) $58.50
C) $154.50
D) $51.50

Question 49

Fusaro 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:

A) $644,670
B) $684,000
C) $68,000
D) $580,580

Question 50

Mundorf 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:
During the most recent month,the company started and completed two jobs--Job B and Job H.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:

A) $48,555
B) $35,490
C) $2,988
D) $45,567

Question 51

Atteberry Corporation has two manufacturing departments--Machining and Finishing.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 E and Job L.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 total manufacturing cost assigned to Job E is closest to:

A) $24,500
B) $35,796
C) $13,400
D) $73,696

Question 52

Doakes 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 the following data:
Recently,Job M843 was completed with the following characteristics:
The unit product cost for Job M843 is closest to:

A) $33.75
B) $67.50
C) $27.50
D) $50.50

Question 53

Tancredi Corporation has two manufacturing departments--Machining and Customizing.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 E and Job J.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.If both jobs are sold during the month,the company's cost of goods sold for the month would be closest to:

A) $61,450
B) $41,150
C) $110,808
D) $102,600

Question 54

Coates 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 total fixed manufacturing overhead cost of $249,000,variable manufacturing overhead of $3.80 per machine-hour,and 30,000 machine-hours.The company has provided the following data concerning Job X784 which was recently completed:
If the company marks up its unit product costs by 30% then the selling price for a unit in Job X784 is closest to:

A) $253.87
B) $233.87
C) $53.97
D) $155.22

Question 55

Stockmaster 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:
During the most recent month,the company started and completed two jobs--Job C and Job H.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 and uses a markup of 40% on manufacturing cost to establish selling prices.The calculated selling price for Job C is closest to:

A) $96,989
B) $88,172
C) $25,192
D) $62,980

Question 56

Carradine 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 total fixed manufacturing overhead cost of $105,000,variable manufacturing overhead of $3.00 per machine-hour,and 70,000 machine-hours.The company recently completed Job P233 which required 60 machine-hours.The amount of overhead applied to Job P233 is closest to:

A) $90
B) $270
C) $450
D) $180

Question 57

Pebbles Corporation has two manufacturing departments--Casting and Finishing.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 A and Job L.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 total manufacturing cost assigned to Job L is closest to:

A) $9,600
B) $6,200
C) $28,904
D) $13,104

Question 58

Bernson Corporation is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $492,000 and 30,000 machine-hours for the period.The company incurred actual total fixed manufacturing overhead of $517,000 and 28,300 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:

A) $464,120
B) $492,000
C) $487,703
D) $25,000

Question 59

Sutter 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:
Recently,Job T369 was completed with the following characteristics:
If the company marks up its unit product costs by 20% then the selling price for a unit in Job T369 is closest to:

A) $324.56
B) $304.56
C) $277.20
D) $50.76

Question 60

Helland 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 the following data:
The predetermined overhead rate is closest to:

A) $2.50 per direct labor-hour
B) $11.30 per direct labor-hour
C) $6.30 per direct labor-hour
D) $8.80 per direct labor-hour

Question 61

Fatzinger Corporation has two production departments,Milling and Assembly.The company uses a job-order costing system and computes a predetermined overhead rate in each production department.The Milling 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:
The predetermined overhead rate for the Assembly Department is closest to:

A) $8.20 per direct labor-hour
B) $3.40 per direct labor-hour
C) $4.06 per direct labor-hour
D) $11.60 per direct labor-hour

Question 62

Tarrant Corporation has two manufacturing departments--Casting and Finishing.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 Casting Department is closest to:

A) $5.70
B) $1.30
C) $5.96
D) $7.00

Question 63

Mahon Corporation has two production departments,Casting and Customizing.The company uses a job-order costing system and computes a predetermined overhead rate in each production department.The Casting 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:
During the current month the company started and finished Job T138.The following data were recorded for this job:
The amount of overhead applied in the Customizing Department to Job T138 is closest to:

A) $588.00
B) $95,200.00
C) $816.00
D) $228.00

Question 64

Ashe Corporation has two manufacturing departments--Machining and Customizing.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 K.There were no beginning inventories.Data concerning those two jobs follow:
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.The manufacturing overhead applied to Job K is closest to:

A) $11,760
B) $1,740
C) $13,716
D) $13,500

Question 65

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?

A) $12,500
B) $11,000
C) $8,000
D) $10,000

Question 66

Swango Corporation has two production departments,Casting and Customizing.The company uses a job-order costing system and computes a predetermined overhead rate in each production department.The Casting 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 Customizing Department is closest to:

A) $24,000
B) $110,400
C) $86,400
D) $60,379

Question 67

Marioni 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:
During the most recent month,the company started and completed two jobs--Job B and Job H.There were no beginning inventories.Data concerning those two jobs follow:
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.The manufacturing overhead applied to Job B is closest to:

A) $6,720
B) $33,600
C) $40,320
D) $39,480

Question 68

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:

A) $663,160
B) $708,000
C) $44,000
D) $704,373

Question 69

Lotz Corporation has two manufacturing departments--Casting and Finishing.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 F and Job K.There were no beginning inventories.Data concerning those two jobs follow:
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.Further assume that the company uses a markup of 50% on manufacturing cost to establish selling prices.The calculated selling price for Job F is closest to:

A) $30,220
B) $90,660
C) $60,440
D) $96,100

Question 70

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:

A) $2.50
B) $2.30
C) $4.80
D) $5.46

Question 71

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?

A) $1,200
B) $1,500
C) $1,560
D) $1,734

Question 72

Bassett Corporation has two production departments,Milling and Customizing.The company uses a job-order costing system and computes a predetermined overhead rate in each production department.The Milling 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 predetermined overhead rate for the Milling Department is closest to:

A) $19.00 per machine-hour
B) $2.10 per machine-hour
C) $9.50 per machine-hour
D) $7.40 per machine-hour

Question 73

Columbo Corporation has two production departments,Forming and Finishing.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 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:
During the current month the company started and finished Job A948.The following data were recorded for this job:
If the company marks up its manufacturing costs by 40% then the selling price for Job A948 would be closest to:

A) $6,197.80
B) $1,770.80
C) $4,427.00
D) $6,818.00

Question 74

Placker 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 total fixed manufacturing overhead cost of $155,000,variable manufacturing overhead of $3.40 per machine-hour,and 50,000 machine-hours.Recently,Job A881 was completed with the following characteristics:
The total job cost for Job A881 is closest to:

A) $3,595
B) $2,945
C) $2,950
D) $1,295

Question 75

Malakan 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:
During the current month the company started and finished Job K368.The following data were recorded for this job:
The amount of overhead applied in the Machining Department to Job K368 is closest to:

A) $856.00
B) $168.00
C) $624.00
D) $140,400.00

Question 76

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:

A) $446,000
B) $37,000
C) $372,190
D) $405,860

Question 77

Molash 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 L.There were no beginning inventories.Data concerning those two jobs follow:
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.Further assume that the company uses a markup of 50% on manufacturing cost to establish selling prices.The calculated selling price for Job L is closest to:

A) $40,320
B) $41,933
C) $13,440
D) $26,880

Question 78

Tomey Corporation has two production departments,Forming and Finishing.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 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:
During the current month the company started and finished Job T617.The following data were recorded for this job:
The total job cost for Job T617 is closest to:

A) $5,604
B) $2,584
C) $684
D) $3,020

Question 79

Boward Corporation has two production departments,Milling and Assembly.The company uses a job-order costing system and computes a predetermined overhead rate in each production department.The Milling 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:
During the current month the company started and finished Job T818.The following data were recorded for this job:
The total amount of overhead applied in both departments to Job T818 is closest to:

A) $1,651
B) $608
C) $435
D) $1,043

Question 80

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:

A) $148,200
B) $110,200
C) $38,000
D) $299,725