Job 148 requires $12,000 of direct materials, $6,700 of direct labor, 550 direct labor hours, and 270 machine hours. It also requires 9 hours of inspection at $40 per hour. Manufacturing overhead is computed at $28 per direct labor hour used and $42 per machine hour used. The total amount of overhead allocated is:
$34,100.
$26,740.
$45,440.
$15,400.
Before the year began, Mitchell Manufacturing estimated that manufacturing overhead for the year would be $175,500 and that 13,000 direct labor hours would be worked. Actual results for the year included the following:
The amount of manufacturing overhead allocated for the year based on direct labor hours would have been:
$179,750.
$195,750.
$175,500.
$184,000.
There are two acceptable methods for closing out any balance of underallocated and overallocated manufacturing overhead. One method involves allocation of the balance among several accounts, whereas the other closes any balance directly to:
finished goods inventory.
cost of goods sold.
cost of goods manufactured.
work in process inventory.
A(n) __________ is an estimated manufacturing overhead rate computed during the year.
cost allocation
cost driver
predetermined manufacturing overhead rate
actual manufacturing overhead rate
Collins Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The following information applies to the Collins Corporation for the current year:
The manufacturing overhead cost for the current year will be:
$17,000 overallocated.
$17,000 underallocated.
$55,000 overallocated.
$55,000 underallocated.
Danny Company had a beginning work in process inventory balance of $32,000. During the year, $54,500 of direct materials was placed into production. Direct labor was $63,400, and indirect labor was $19,500. Manufacturing overhead is allocated at 125% of direct labor costs. Actual manufacturing overhead was $86,500, and jobs costing $225,000 were completed during the year. What is the ending work in process inventory balance?
$172,400
$11,400
$4,150
$79,250
7. Before the year began, Mitchell Manufacturing estimated that manufacturing overhead for the year would be $175,500 and that 13,000 direct labor hours would be worked. Actual results for the year included the following:
The predetermined manufacturing overhead rate per direct labor hour is closest to:
$12.10.
$12.69.
$13.50.
$14.15.
Which of the following entries would correctly record the application of overhead cost?
Work in Process XXX
Accounts Payable XXX
Manufacturing Overhead XXX
Accounts Payable XXX
Manufacturing Overhead XXX
Work in Process XXX
Work in Process XXX
Manufacturing Overhead XXX
In a job-order costing system, the use of indirect materials that have been previously purchased is recorded as a credit to:
work in process inventory.
manufacturing overhead.
raw materials inventory.
finished goods inventory.
Assigning manufacturing overhead costs and other indirect costs is called a:
cost driver.
cost allocation.
materials requisition.
predetermined manufacturing overhead rate.
Bakersville Company is a manufacturing firm that uses job-order costing. The company’s inventory balances were as follows at the beginning and end of the year:
The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,000 machine-hours and incur $231,000 in manufacturing overhead cost. The following transactions were recorded for the year:
Raw materials were purchased, $315,000.
Raw materials were requisitioned for use in production, $307,000 ($281,000 direct and $26,000 indirect).
The following employee costs were incurred: direct labor, $377,000; indirect labor, $96,000; and administrative salaries, $172,000.
Selling costs, $147,000.
Factory utility costs, $10,000.
Depreciation for the year was $127,000 of which $120,000 is related to factory operations and $7,000 is related to selling, general, and administrative activities.
Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,000 machine-hours.
Sales for the year totaled $1,253,000.
Required:
Prepare a schedule of cost of goods manufactured.
Was the overhead underallocated or overallocated? By how much?
Prepare an income statement for the year. The company closes any underallocated or overallocated overhead to Cost of Goods Sold.
( type your answer)
Parker Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year manufacturing overhead and direct labor-hours were estimated at $50,000 and 20,000 hours, respectively, for the year. In June, Job #461 was completed. Materials costs on the job totaled $4,000, and labor costs totaled $1,500 at $5 per hour. At the end of the year, it was determined that the company worked 24,000 direct labor-hours for the year and incurred $54,000 in actual manufacturing overhead costs.
Required:
Job #461 contained 100 units. Determine the unit product cost that would appear on the job cost sheet.
Determine the underallocated or overallocated overhead for the year.
(type your answer)
13. Summarize the evolution of cost processing in Greece from 1985-2015. Your response must be at least 400 words in length.
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