Question 1

Harnett Corporation has two manufacturing departments--Molding and Assembly.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 E and Job M.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 E.
c.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.Calculate the total manufacturing cost assigned to Job E.
d.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 60% on manufacturing cost to establish selling prices.Calculate the selling price for Job E.
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 Molding 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 Assembly 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 E?
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 60% on manufacturing cost to establish selling prices.Calculate the selling price for Job E.

Accepted Answer

The answer of Harnett Corporation has two manufacturing departments--Molding and...

Question 2

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 F is closest to:

Accepted Answer

A) $4,620 
B) $12,780 
C) $12,420 
D) $8,160

Question 3

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.The departmental predetermined overhead rate in the Assembly Department is closest to:

Accepted Answer

A) $2.60 
B) $4.70 
C) $6.05 
D) $2.10

Question 4

Mundorf 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 B 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.The amount of manufacturing overhead applied to Job B is closest to:

Accepted Answer

A) $48,555 
B) $35,490 
C) $2,988 
D) $45,567

Question 5

The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to:

Accepted Answer

A) $831,600 
B) $54,000 
C) $774,900 
D) $738,000

Question 6

Which of the following statements about using a plantwide overhead rate based on direct labor is correct?

Accepted Answer

A) Using a plantwide overhead rate based on direct labor-hours will ensure that direct labor costs are correctly traced to jobs. 
B) Using a plantwide overhead rate based on direct labor costs will ensure that direct labor costs will be correctly traced to jobs. 
C) It is often overly simplistic and incorrect to assume that direct labor-hours is a company's only manufacturing overhead cost driver. 
D) The labor theory of value ensures that using a plantwide overhead rate based on direct labor will do a reasonably good job of assigning overhead costs to jobs.

Question 7

Ashe Corporation has two manufacturing departments--Machining and Customizing.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:  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 K is closest to:

Accepted Answer

A) $11,760 
B) $1,740 
C) $13,716 
D) $13,500

Question 8

If the company marks up its unit product costs by 40% then the selling price for a unit in Job A496 is closest to:

Accepted Answer

A) $186.20 
B) $272.28 
C) $72.08 
D) $252.28

Question 9

The unit product cost for Job K818 is closest to:

Accepted Answer

A) $51.90 
B) $259.50 
C) $232.00 
D) $119.50

Question 10

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 L is closest to:

Accepted Answer

A) $11,680 
B) $28,780 
C) $17,100 
D) $29,900

Question 11

Dearden 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 total fixed manufacturing overhead cost of $144,000, variable manufacturing overhead of $2.00 per machine-hour, and 60,000 machine-hours.The predetermined overhead rate is closest to:

Accepted Answer

A) $2.40 per machine-hour 
B) $6.40 per machine-hour 
C) $4.40 per machine-hour 
D) $2.00 per machine-hour

Question 12

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.The departmental predetermined overhead rate in the Assembly Department is closest to:

Accepted Answer

A) $2.90 
B) $6.48 
C) $5.10 
D) $2.20

Question 13

Ryans 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 P512 was completed with the following characteristics:  Required:
a.Calculate the predetermined overhead rate for the year.
b.Calculate the amount of overhead applied to Job P512.
c.Calculate the total job cost for Job P512.
d.Calculate the unit product cost for Job P512.

Accepted Answer

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

Question 14

Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the upcoming year appear below:  The predetermined overhead rate for the recently completed year was closest to:

Accepted Answer

A) $29.39 per machine-hour 
B) $32.40 per machine-hour 
C) $32.81 per machine-hour 
D) $3.01 per machine-hour

Question 15

Sargent Corporation applies overhead cost to jobs on the basis of 80% of direct labor cost.If Job 210 shows $10,000 of manufacturing overhead cost applied, how much was the direct labor cost on the job?

Accepted Answer

A) $12,500 
B) $11,000 
C) $8,000 
D) $10,000

Question 16

The predetermined overhead rate is closest to:

Accepted Answer

A) $26.40 
B) $25.14 
C) $23.43 
D) $24.60

Question 17

The amount of overhead applied in the Milling Department to Job A319 is closest to:

Accepted Answer

A) $142,200.00 
B) $552.00 
C) $96.00 
D) $474.00

Question 18

Sutter 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 T369 was completed with the following characteristics:  If the company marks up its unit product costs by 20% then the selling price for a unit in Job T369 is closest to:

Accepted Answer

A) $324.56 
B) $304.56 
C) $277.20 
D) $50.76

Question 19

Matrejek Corporation has two manufacturing departments--Forming and Customizing.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 D 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 and uses a markup of 50% on manufacturing cost to establish selling prices.Calculate the selling price for Job D.
b.Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices.Calculate the selling price for Job K.
c.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.Calculate the selling price for Job D.
d.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.Calculate the selling price for Job K.

Accepted Answer

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

Question 20

A cost driver is a factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes direct costs.

Accepted Answer

A) True 
 B)False

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

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 F is closest to:

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.The departmental predetermined overhead rate in the Assembly Department is closest to:

The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to:

Which of the following statements about using a plantwide overhead rate based on direct labor is correct?

If the company marks up its unit product costs by 40% then the selling price for a unit in Job A496 is closest to:

The unit product cost for Job K818 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 L is closest to:

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.The departmental predetermined overhead rate in the Assembly Department is closest to:

Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the upcoming year appear below: The predetermined overhead rate for the recently completed year was closest to:

Sargent Corporation applies overhead cost to jobs on the basis of 80% of direct labor cost.If Job 210 shows $10,000 of manufacturing overhead cost applied, how much was the direct labor cost on the job?

The predetermined overhead rate is closest to:

The amount of overhead applied in the Milling Department to Job A319 is closest to:

A cost driver is a factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes direct costs.