Exam 5: Job-Order Costing

Figure 5-2. At the beginning of the year,Kyla Inc.estimated that overhead would be $880,000 and direct labor hours would be 220,000.At the end of the year,actual overhead was $920,600 and there were actually 230,000 direct labor hours. Refer to Figure 5-2.What is the overhead variance?

The journal entry for $17,000 materials purchased on account is:

Departmental overheads cannot be added together to get plantwide overhead.

The predetermined overhead rate is usually calculated

The three manufacturing cost elements are direct materials,direct labor,and overhead.

The Kraig Corporation manufactures custom-made purses.The following data pertains to Job XY5: Plantwide overhead is applied using a plant-wide rate based on direct labor hours.Plantwide overhead was budgeted at $60,000 for the year and the direct labor hours were estimated to be 15,000.Job XY5 consists of 50 units.What is overhead cost assigned to Job XY5?

Wisteria Company provided the following data: predetermined overhead rate = $80,000/10,000 = $8 per direct labor hour

Figure 5-7. Laudermilk produces dairy equipment.Most of its jobs have a number of units per job.The company has two different departments through which all jobs pass.Overhead is applied using a plantwide rate of $13 per direct labor hour.Direct labor wages average $8 an hour.Data for Job #3 for the year is: Refer to Figure 5-7.Compute the cost per unit.

Figure 5-12. Walter Company uses a job-order costing system to account for product costs.The following information pertains to the current year: Plantwide overhead rate is $18 per direct labor hour. Refer to Figure 5-12.What is the total amount credited to Materials Inventory for Walter in the current year?

Actual overhead is reconciled with applied overhead at the beginning of the period.

Figure 5-3. Mitchell's Softball Gloves Company estimated the following at the beginning of the year: Mitchell uses departmental overhead rates.In the assembly department,direct labor hours are used to apply overhead.Machine hours are used to apply overhead in the testing department. Actual data for August is as follows: Refer to Figure 5-3.Mitchell decides to continue using departmental overhead rates.What are the predetermined rates for the Assembly and Testing departments respectively?