Question 1

Columbo Corporation has two production departments, Forming and Finishing.The company uses a job-order costing system and computes a predetermined overhead rate in each production department.The Forming Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours.At the beginning of the current year, the company had made the following estimates:  During the current month the company started and finished Job A948.The following data were recorded for this job:  If the company marks up its manufacturing costs by 40% then the selling price for Job A948 would be closest to:

Accepted Answer

A) $6,197.80 
B) $1,770.80 
C) $4,427.00 
D) $6,818.00

Question 2

Dallman Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours.The company based its predetermined overhead rate for the current year on 70,000 machine-hours, total fixed manufacturing overhead cost of $287,000, and a variable manufacturing overhead rate of $3.50 per machine-hour.
Required:
a.Calculate the estimated total manufacturing overhead for the year.
b.Calculate the predetermined overhead rate for the year.

Accepted Answer

The answer of Dallman Corporation uses a job-order costing system...

Question 3

A company will improve job cost accuracy by using multiple overhead rates even if it cannot identify more than one overhead cost driver.

Accepted Answer

A) True 
 B)False

Question 4

The predetermined overhead rate for the Customizing Department is closest to:

Accepted Answer

A) $3.30 per direct labor-hour 
B) $12.70 per direct labor-hour 
C) $9.40 per direct labor-hour 
D) $4.76 per direct labor-hour

Question 5

The predetermined overhead rate is closest to:

Accepted Answer

A) $13.30 per direct labor-hour 
B) $3.80 per direct labor-hour 
C) $9.50 per direct labor-hour 
D) $5.70 per direct labor-hour

Question 6

Gercak Corporation has two production departments, Forming and Assembly.The company uses a job-order costing system and computes a predetermined overhead rate in each production department.The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours.At the beginning of the current year, the company had made the following estimates:  During the current month the company started and finished Job X560.The following data were recorded for this job:  Required:
a.Calculate the estimated total manufacturing overhead for the Assembly Department.
b.Calculate the predetermined overhead rate for the Forming Department.
c.Calculate the total amount of overhead applied to Job X560 in both departments.

Accepted Answer

The answer of Gercak Corporation has two production departments, Forming...

Question 7

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.The manufacturing overhead applied to Job B is closest to:

Accepted Answer

A) $9,400 
B) $25,160 
C) $32,670 
D) $34,560

Question 8

The unit product cost for Job A496 is closest to:

Accepted Answer

A) $133.00 
B) $72.20 
C) $45.05 
D) $180.20

Question 9

Cannizzaro Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours.The company based its predetermined overhead rate for the current year on 40,000 machine-hours, total fixed manufacturing overhead cost of $248,000, and a variable manufacturing overhead rate of $3.80 per machine-hour.
Required:
Calculate the predetermined overhead rate for the year.

Accepted Answer

The answer of Cannizzaro Corporation uses a job-order costing system...

Question 10

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.Further assume that the company uses a markup of 20% on manufacturing cost to establish selling prices.The calculated selling price for Job C is closest to:

Accepted Answer

A) $87,666 
B) $68,920 
C) $13,784 
D) $82,704

Question 11

Laflame Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours.The company based its predetermined overhead rate for the current year on the following data:  The estimated total manufacturing overhead is closest to:

Accepted Answer

A) $273,000 
B) $630,000 
C) $357,004 
D) $357,000

Question 12

The total job cost for Job T498 is closest to:

Accepted Answer

A) $4,430 
B) $3,670 
C) $1,710 
D) $3,480

Question 13

The predetermined overhead rate for the Forming Department is closest to:

Accepted Answer

A) $23.12 per machine-hour 
B) $2.00 per machine-hour 
C) $5.30 per machine-hour 
D) $7.30 per machine-hour

Question 14

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.The manufacturing overhead applied to Job H is closest to:

Accepted Answer

A) $22,680 
B) $30,888 
C) $29,880 
D) $7,200

Question 15

The estimated total manufacturing overhead for the Machining Department is closest to:

Accepted Answer

A) $137,600 
B) $104,000 
C) $33,600 
D) $310,933

Question 16

The predetermined overhead rate is closest to:

Accepted Answer

A) $2.90 per machine-hour 
B) $2.00 per machine-hour 
C) $4.90 per machine-hour 
D) $6.90 per machine-hour

Question 17

Grib Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs.The predetermined overhead rates for the year are 200% of direct labor cost for Department A and 50% of direct labor cost for Department B.Job 436, started and completed during the year, was charged with the following costs:   The total manufacturing cost assigned to Job 436 was:

Accepted Answer

A) $360,000 
B) $390,000 
C) $270,000 
D) $480,000

Question 18

Lamberson Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours.The company based its predetermined overhead rate for the current year on the following data:  Recently Job P647 was completed with the following  characteristics:  Required:
a.Calculate the amount of overhead applied to Job P647.
b.Calculate the total job cost for Job P647.
c.Calculate the unit product cost for Job P647.

Accepted Answer

The answer of Lamberson Corporation uses a job-order costing system...

Question 19

The amount of overhead applied to Job P951 is closest to:

Accepted Answer

A) $840 
B) $300 
C) $540 
D) $240

Question 20

The predetermined overhead rate for the Machining Department is closest to:

Accepted Answer

A) $7.20 per machine-hour 
B) $9.00 per machine-hour 
C) $21.38 per machine-hour 
D) $1.80 per machine-hour

Exam 2: Job-Order Costing: Calculating Unit Product Costs

A company will improve job cost accuracy by using multiple overhead rates even if it cannot identify more than one overhead cost driver.

The predetermined overhead rate for the Customizing Department is closest to:

The predetermined overhead rate is closest to:

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.The manufacturing overhead applied to Job B is closest to:

The unit product cost for Job A496 is closest to:

Laflame Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours.The company based its predetermined overhead rate for the current year on the following data: The estimated total manufacturing overhead is closest to:

The total job cost for Job T498 is closest to:

The predetermined overhead rate for the Forming Department is closest to:

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.The manufacturing overhead applied to Job H is closest to:

The estimated total manufacturing overhead for the Machining Department is closest to:

The predetermined overhead rate is closest to:

The amount of overhead applied to Job P951 is closest to:

The predetermined overhead rate for the Machining Department is closest to: