Question 1

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 A is closest to:

Accepted Answer

A) $14,400 
B) $15,120 
C) $28,512 
D) $29,520

Question 2

Lotz Corporation has two manufacturing departments--Casting and Finishing.The company used the following data at the beginning of the year to calculate predetermined overhead rates:  During the most recent month, the company started and completed two jobs--Job F and Job K.There were no beginning inventories.Data concerning those two jobs follow:  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 50% on manufacturing cost to establish selling prices.The calculated selling price for Job F is closest to:

Accepted Answer

A) $30,220 
B) $90,660 
C) $60,440 
D) $96,100

Question 3

Which of the following statements is not correct concerning multiple overhead rate systems?

Accepted Answer

A) A multiple overhead rate system is more complex than a system based on a single plantwide overhead rate. 
B) A multiple overhead rate system is usually more accurate than a system based on a single plantwide overhead rate. 
C) A company may choose to create a separate overhead rate for each of its production departments. 
D) In departments that are relatively labor-intensive, their overhead costs should be applied to jobs based on machine-hours rather than on direct labor-hours.

Question 4

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.The amount of manufacturing overhead applied to Job C is closest to:

Accepted Answer

A) $32,130 
B) $11,900 
C) $20,230 
D) $20,520

Question 5

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 40% on manufacturing cost to establish selling prices.The calculated selling price for Job M is closest to:

Accepted Answer

A) $46,154 
B) $41,958 
C) $29,970 
D) $11,988

Question 6

If the company marks up its unit product costs by 40% then the selling price for a unit in Job T687 is closest to:

Accepted Answer

A) $81.60 
B) $305.60 
C) $285.60 
D) $241.50

Question 7

Stockmaster Corporation has two manufacturing departments--Forming and Assembly.The company used the following data at the beginning of the year to calculate predetermined overhead rates:  During the most recent month, the company started and completed two jobs--Job C and Job H.There were no beginning inventories.Data concerning those two jobs follow:  Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 40% on manufacturing cost to establish selling prices.The calculated selling price for Job C is closest to:

Accepted Answer

A) $96,989 
B) $88,172 
C) $25,192 
D) $62,980

Question 8

The predetermined overhead rate is closest to:

Accepted Answer

A) $8.10 per machine-hour 
B) $2.10 per machine-hour 
C) $3.90 per machine-hour 
D) $6.00 per machine-hour

Question 9

If the company marks up its manufacturing costs by 40% then the selling price for Job T268 would be closest to:

Accepted Answer

A) $1,932.40 
B) $6,763.40 
C) $4,831.00 
D) $7,440.00

Question 10

Which of the following is the correct formula to compute the predetermined overhead rate?

Accepted Answer

A) Predetermined overhead rate = Estimated total units in the allocation base ÷ Estimated total manufacturing overhead costs 
B) Predetermined overhead rate = Estimated total manufacturing overhead costs ÷ Estimated total units in the allocation base 
C) Predetermined overhead rate = Actual total manufacturing overhead costs ÷ Estimated total units in the allocation base 
D) Predetermined overhead rate = Estimated total manufacturing overhead costs ÷ Actual total units in the allocation base.

Question 11

Hultquist Corporation has two manufacturing departments--Forming and Customizing.The company used the following data at the beginning of the period to calculate predetermined overhead rates:  During the period, the company started and completed two jobs--Job C and Job L.Data concerning those two jobs follow:  Required:
a.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.Calculate that overhead rate.
b.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.Calculate the amount of manufacturing overhead applied to Job L.
c.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.Calculate the total manufacturing cost assigned to Job L.
d.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 80% on manufacturing cost to establish selling prices.Calculate the selling price for Job L.
e.Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.What is the departmental predetermined overhead rate in the Forming department?
f.Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.What is the departmental predetermined overhead rate in the Customizing department?
g.Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.How much manufacturing overhead will be applied to Job L?
h.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 80% on manufacturing cost to establish selling prices.Calculate the selling price for Job L.

Accepted Answer

The answer of Hultquist Corporation has two manufacturing departments--Forming and...

Question 12

Bierce Corporation has two manufacturing departments--Machining and Finishing.The company used the following data at the beginning of the year to calculate predetermined overhead rates:  During the most recent month, the company started and completed two jobs--Job B and Job K.There were no beginning inventories.Data concerning those two jobs follow:  Required:
a.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.Calculate that overhead rate.
b.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.Calculate the amount of manufacturing overhead applied to Job B.
c.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.Calculate the amount of manufacturing overhead applied to Job K.
d.Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.What is the departmental predetermined overhead rate in the Machining department?
e.Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.What is the departmental predetermined overhead rate in the Finishing department?
f.Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.How much manufacturing overhead will be applied to Job B?
g.Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments.How much manufacturing overhead will be applied to Job K?

Accepted Answer

The answer of Bierce Corporation has two manufacturing departments--Machining and...

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