Exam 3: Job Costing

Showboat Corporation had actual manufacturing overhead costs for the most recent year of $29,500.Manufacturing overhead is allocated using a predetermined manufacturing overhead rate of $1.50 per direct labor hour.Direct labor cost is $19 per hour.At the end of the year,Cabaret Corporation found it had overallocated manufacturing overhead by $1,250.How much manufacturing overhead was allocated in total during the year?

If a job consists of a batch of identical units,managers find the unit cost by dividing the total job cost by the number of units in the job.

The following information was gathered for the Wesley Corporation for the most recent year.Manufacturing overhead is allocated using direct labor hours. What is the company's predetermined manufacturing overhead rate?

The amount of overallocation or underallocation is found by taking the difference between the amount of overhead allocated during the year and the amount of overhead incurred during the year.

Krepes Manufacturing has two departments that produce small appliances.The Drilling Department allocates manufacturing overhead using machine hours as the allocation base while the Cutting Department allocates manufacturing overhead using direct labor cost as the allocation base.Data for April are shown below: a.Determine the predetermined manufacturing overhead rate for the Drilling Department. b.Determine the predetermined manufacturing overhead rate for the Cutting Department. c.Determine the balances of the manufacturing overhead accounts for each department as of April 30.Indicate whether the amounts represent overallocated or underallocated manufacturing overhead.

Grassland Corporation had actual manufacturing overhead costs of $32,500 for the past year.Direct labor cost is $12.00 per hour.Manufacturing overhead is allocated at a rate of $4.00 per direct labor hour.Manufacturing overhead was overallocated for the year by $2,500. Calculate: a.Allocated manufacturing overhead costs for year b.Actual number of direct labor hours worked in year

Cooper's Company manufactures custom engines for use in the lawn and garden equipment industry.The company allocates manufacturing overhead based on machine hours.Selected data for costs incurred for Job 798 are as follows: What is the total manufacturing cost of Job 798?

The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company: Additional data: 1.Actual manufacturing overhead for January amounted to $62,000. 2.Total direct labor cost for January was $63,000. 3.The predetermined manufacturing overhead rate is based on direct labor cost.The budget for the year called for $250,000 of direct labor cost and $350,000 of manufacturing overhead costs. 4.The only job unfinished on January 31 was Job No.151,for which total direct labor charges were $5,200 (800 direct labor hours)and total direct material charges were $14,000. 5.Cost of direct materials placed in production during January totaled $123,000.There were no indirect material requisitions during January. 6.January 31 balance in raw materials inventory was $35,000. 7.Finished goods inventory balance on January 31 was $34,500. What is the amount of materials purchased during January?

A ________ is a source document used to track employee hours.

State whether each company below would be more likely to use a job costing system or a process costing system.

When is the predetermined manufacturing overhead rate computed?

The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company: Additional data: 1.Actual manufacturing overhead for January amounted to $62,000. 2.Total direct labor cost for January was $63,000. 3.The predetermined manufacturing overhead rate is based on direct labor cost.The budget for the year called for $250,000 of direct labor cost and $350,000 of manufacturing overhead costs. 4.The only job unfinished on January 31 was Job No.151,for which total direct labor charges were $5,200 (800 direct labor hours)and total direct material charges were $14,000. 5.Cost of direct materials placed in production during January totaled $123,000.There were no indirect material requisitions during January. 6.January 31 balance in raw materials inventory was $35,000. 7.Finished goods inventory balance on January 31 was $34,500. What is the cost of goods sold for January?

The most significant cost for a service firm is direct labor cost.

The end goal of process costing and job costing at a manufacturing company is the same: to find the cost of producing one unit of product.

Job 590 has an ending balance of $28,500.It has been charged manufacturing overhead costs of $7,000.The rate is 70% of direct labor.What was the amount of direct materials charged to the job?

Manufacturers follow four steps to implement a manufacturing overhead allocation system.What is the first step?

The cost of wages paid to assembly-line workers should be treated as a manufacturing overhead cost.

A ________ is used to accumulate all of the direct materials and direct labor used on the job,as well as the manufacturing overhead allocated to the job.

Federer Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead.The following information is available for the most recent year: If Federer Company uses direct labor hours as the allocation base,what would the predetermined manufacturing overhead rate be?

Job costing is often used by professional service providers,such as law firms.