Exam 5: Systems Design: Job-Order Costing

Bitter Company incurs a direct labour rate of $15 per hour applies overhead to jobs on the basis of $1.25 per direct labour hour.If Job 107 shows $86,000 of direct material and $10,000 of manufacturing overhead applied,what is the total cost of job 107?

The following cost data relate to the manufacturing activities of the Kamas Company during the most recent year: The company uses a predetermined overhead rate to charge overhead cost to production.The rate for the year just completed was $4.00 per machine hour;a total of 6,000 machine hours were recorded for the year. Required: a.Compute the amount of under- or overapplied overhead cost for the year just ended. b.Prepare a schedule of cost of goods manufactured for the year.

The labour time ticket contains a detailed summary of the direct and the indirect labour hours of an employee.

Which of the following statements is true if a company applies overhead to jobs on the basis of a predetermined overhead rate and reports a credit balance in the Manufacturing Overhead account at the end of any period?

What was the March 1 balance in the Raw Materials inventory?

What is the manufacturing overhead applied?

At the beginning of the year,manufacturing overhead for the year was estimated to be $250,860.At the end of the year,actual direct labor-hours for the year were 20,800 hours,the actual manufacturing overhead for the year was $245,860,and manufacturing overhead for the year was underapplied by $10,820.The predetermined overhead rate is based on direct labour-hours. Required: What must have been the estimated direct labor-hours at the beginning of the year used in setting the predetermined overhead rate?

Lucy Sportswear manufactures a specialty line of T-shirts.The company uses a job-order costing system.During March,the following costs were incurred on Job ICU2: In addition,selling and shipping costs of $7,000 were incurred on the job.Manufacturing overhead was applied at the rate of $25 per machine hour,and Job ICU2 required 800 machine hours.If Job ICU2 consisted of 7,000 shirts,what was the Cost of Goods Sold per shirt?