Exam 5: Job-Order Costing

Which statement best describes job-order costing?

Whitney Company uses a predetermined rate to apply overhead. At the beginning of the year, Whitney estimated its overhead costs at $280,000, direct labour hours at 40,000, and machine hours at 10,000. Actual overhead costs incurred were $289,000, actual direct labour hours were 41,000, and actual machine hours were 11,000. Suppose the predetermined overhead rate is based on machine hours. What would be the total amount credited to the manufacturing overhead account for the year for Whitney?

Match each following terms with their correct description from the items listed below. -Overhead assigned to production using predetermined rates

Which source document would NOT be used to help decide the cost of a job?

Quillen Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to the company: Support Departments Producing Departments S1 2 Cutting Sewing Direct Costs \ 180,000 \ 150,000 \ 122,000 \ 90,500 Normal Activity: \# of employees - 30 63 147 Maintenance hours 1,200 - 16,000 4,000 -Refer to Quillen Company. Using the direct method, how much of the support department costs will be allocated from Department S2 to the Cutting Department?

HiTech Housing HiTech Housing uses job-order costing. At the end of the month, the following data were gathered: Job \# Total Cost Complete? Sold? 529 \ 409 no no 530 \ 513 yes no 531 \ 115 no no 532 \ 790 yes yes 533 \ 650 yes no 534 \ 540 no no 535 \ 90 no no 536 \ 970 yes yes 537 \ 179 no no 538 \ 400 no no Sales price is cost plus 50% for each of its houses. -Refer to the HiTech Housing. What is the total in Finished Goods Inventory?

The journal entry for $17 of underapplied overhead is: Overhead Control 17 Cost of Goods Sold 17

Solidwood Solidwood Corporation manufactures custom-made furniture. The following data pertains to Job X4A: Direct materials placed into production \ 9,000 Direct labour hours w orked 300 hours Direct labour rate per hour \ 15 Machine hours w orked 100 hours Manufacturing overhead rate is $22.50 per machine hour. -Refer to Solidwood Corporation. Suppose one-half of Job X4A was sold for $10,000. What would be the total amount of costs assigned to Job X4A?

Which event would require two separate journal entries?

Which formula is used to calculate the predetermined overhead rate?

What are the three steps of overhead application?

Match each following terms with their correct description from the items listed below. -The amount by which actual overhead exceeds applied overhead

Which of the following is a production cost in an automobile manufacturing company?

A job costing $5,000 is completed. What journal entry is used to record this transaction?

HiTech Housing HiTech Housing uses job-order costing. At the end of the month, the following data were gathered: Job \# Total Cost Complete? Sold? 529 \ 409 no no 530 \ 513 yes no 531 \ 115 no no 532 \ 790 yes yes 533 \ 650 yes no 534 \ 540 no no 535 \ 90 no no 536 \ 970 yes yes 537 \ 179 no no 538 \ 400 no no Sales price is cost plus 50% for each of its houses. -Refer to HiTech Housing. What is the total in the Work-in-Process Inventory account?

A primary characteristic of job-order costing is that the cost of each job is unique and must be tracked individually.

Bob's Powerwasher Company Bob's Powerwasher Company makes custom powerwashers for individual customers. On April 1, one job was in process, Job 900, which had a cost of $45,650. Jobs 901, 902, and 903 were started during the month of July. Data on costs added during the month are as follows: Job 900 Job 901 Job 902 Job 903 Direct Materials \ 6,740 \ 2,520 \ 7,870 Direct Labour \ 5,880 \ 10,280 \ 3,760 \ 11,360 Overhead is applied to production at the rate of 85% of direct labour cost. Job 903 was completed on April 26, and the client was billed at cost plus 45%. All other jobs remained in process. -Refer to Bob's Powerwasher Company. What is the balance in the Work-in-Process Inventory account on April 30?

A company has two departments that all goods pass through: machining and assembly. Machining overhead is applied based on machine hours, and assembly overhead is applied based on direct labour hours. Data on each department are as follows: Machining Assembly Budgeted Overhead \ 75,000 \ 40,000 Budgeted Direct Labour Hours 5,000 10,000 Budgeted Machine Hours 25,000 1,000 Actual Overhead \ 75,400 \ 39,200 Actual Direct Labour Hours 5,203 9,980 Actual Machine Hours 25,040 850 A. Calculate the overhead rate for each department. B. Calculate each department's applied overhead. C. Calculate each department's overhead variance. Specify whether it is overapplied or underapplied.

At the beginning of the year, Shoeman Corporation estimates its overhead for the year will be $150,000. Suppose the actual overhead for the year is $160,000 and the applied overhead for the year is $145,000. Assume that the overhead variance is insignificant. What journal entry is needed to reconcile the overhead variance?

Refer to Rovetti, Inc. What is the overhead variance?