Question 1

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?

Accepted Answer

A)  $96,000. 
B)  $120,000. 
C)  $130,000. 
D)  $216,000.Total cost = $86,000 + (8,000 hrs.@ $15/hr)+ $10,000 = $216,000

Question 2

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.

Accepted Answer

The answer of The following cost data relate to the...

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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?

Accepted Answer

A)  More overhead cost has been charged to jobs than has been incurred during the period. 
B)  More overhead cost has been incurred during the period than has been charged to jobs. 
C)  The amount of overhead cost charged to jobs is greater than the estimated cost for the period. 
D)  The amount of overhead cost charged to jobs is less than the estimated overhead cost for the perioD.

Question 5

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

Accepted Answer

A)  $10,500. 
B)  $9,500. 
C)  $6,500. 
D)  $8,500.

Question 6

What is the manufacturing overhead applied?

Accepted Answer

A)  $27,000. 
B)  $28,000. 
C)  $29,000. 
D)  $36,000.

Question 7

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?

Accepted Answer

The answer of At the beginning of the year,manufacturing overhead...

Question 8

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?

Accepted Answer

A)  $5.50. 
B)  $5.70. 
C)  $6.00. 
D)  $6.50.

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 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?