Accounting Chapter 2 13 Janicki Corporation has two manufacturing departments

243

186) Janicki 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:

Machining

Customizing

Total

Estimated total machine-hours (MHs)

1,000

9,000

10,000

Estimated total fixed manufacturing overhead

cost

$

4,800

$

23,400

$

28,200

Estimated variable manufacturing overhead cost

per MH

$

1.10

$

2.50

During the most recent month, the company started and completed two jobs—Job A and Job J.

There were no beginning inventories. Data concerning those two jobs follow:

Job A

Job J

Direct materials

$

12,000

$

7,700

Direct labor cost

$

20,700

$

6,400

Machining machine-hours

700

300

Customizing machine-hours

3,600

5,400

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. The

calculated selling price for Job J is closest to:

A) $71,983

B) $65,439

C) $43,626

D) $21,813

187) Janicki 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:

Machining

Customizing

Total

Estimated total machine-hours (MHs)

1,000

9,000

10,000

Estimated total fixed manufacturing overhead

cost

$

4,800

$

23,400

$

28,200

Estimated variable manufacturing overhead cost

per MH

$

1.10

$

2.50

During the most recent month, the company started and completed two jobs—Job A and Job J.

There were no beginning inventories. Data concerning those two jobs follow:

Job A

Job J

Direct materials

$

12,000

$

7,700

Direct labor cost

$

20,700

$

6,400

Machining machine-hours

700

300

Customizing machine-hours

3,600

5,400

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 A is closest to:

A) $27,595

B) $87,752

C) $82,785

D) $55,190

Estimated fixed manufacturing overhead

$

Estimated variable manufacturing overhead ($1.10

per MH × 1,000 MHs)

1,100

Estimated total manufacturing overhead cost (a)

$

Estimated total machine-hours (b)

MHs

Departmental predetermined overhead rate (a) ÷ (b)

$

5.90

per

188) Janicki 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:

Machining

Customizing

Total

Estimated total machine-hours (MHs)

1,000

9,000

10,000

Estimated total fixed manufacturing overhead

cost

$

4,800

$

23,400

$

28,200

Estimated variable manufacturing overhead cost

per MH

$

1.10

$

2.50

During the most recent month, the company started and completed two jobs—Job A and Job J.

There were no beginning inventories. Data concerning those two jobs follow:

Job A

Job J

Direct materials

$

12,000

$

7,700

Direct labor cost

$

20,700

$

6,400

Machining machine-hours

700

300

Customizing machine-hours

3,600

5,400

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 J is closest to:

A) $65,115

B) $67,720

C) $21,705

D) $43,410

Estimated fixed manufacturing overhead

$

Estimated variable manufacturing overhead ($1.10

per MH × 1,000 MHs)

1,100

Estimated total manufacturing overhead cost (a)

$

Estimated total machine-hours (b)

MHs

Departmental predetermined overhead rate (a) ÷ (b)

$

5.90

per

250

189) Comans Corporation has two production departments, Milling and Customizing. The

company uses a job-order costing system and computes a predetermined overhead rate in each

production department. The Milling Department’s predetermined overhead rate is based on

machine-hours and the Customizing 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:

Milling

Customizing

Machine-hours

18,000

13,000

Direct labor-hours

4,000

7,000

Total fixed manufacturing overhead cost

$

113,400

$

64,400

Variable manufacturing overhead per machine-hour

$

1.60

Variable manufacturing overhead per direct labor-hour

$

3.90

During the current month the company started and finished Job A319. The following data were

recorded for this job:

Job A319:

Milling

Customizing

Machine-hours

60

10

Direct labor-hours

20

60

Direct materials

$

655

$

305

Direct labor cost

$

400

$

1,200

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

A) $142,200.00

B) $552.00

C) $96.00

D) $474.00

252

190) Comans Corporation has two production departments, Milling and Customizing. The

company uses a job-order costing system and computes a predetermined overhead rate in each

production department. The Milling Department’s predetermined overhead rate is based on

machine-hours and the Customizing 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:

Milling

Customizing

Machine-hours

18,000

13,000

Direct labor-hours

4,000

7,000

Total fixed manufacturing overhead cost

$

113,400

$

64,400

Variable manufacturing overhead per machine-hour

$

1.60

Variable manufacturing overhead per direct labor-hour

$

3.90

During the current month the company started and finished Job A319. The following data were

recorded for this job:

Job A319:

Milling

Customizing

Machine-hours

60

10

Direct labor-hours

20

60

Direct materials

$

655

$

305

Direct labor cost

$

400

$

1,200

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

A) $234.00

B) $786.00

C) $552.00

D) $91,700.00

191) Comans Corporation has two production departments, Milling and Customizing. The

company uses a job-order costing system and computes a predetermined overhead rate in each

production department. The Milling Department’s predetermined overhead rate is based on

machine-hours and the Customizing 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:

Milling

Customizing

Machine-hours

18,000

13,000

Direct labor-hours

4,000

7,000

Total fixed manufacturing overhead cost

$

113,400

$

64,400

Variable manufacturing overhead per machine-hour

$

1.60

Variable manufacturing overhead per direct labor-hour

$

3.90

During the current month the company started and finished Job A319. The following data were

recorded for this job:

Job A319:

Milling

Customizing

Machine-hours

60

10

Direct labor-hours

20

60

Direct materials

$

655

$

305

Direct labor cost

$

400

$

1,200

If the company marks up its manufacturing costs by 20% then the selling price for Job A319

would be closest to:

A) $5,042.00

B) $4,584.00

C) $3,820.00

D) $764.00

256

192) Sanderlin 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:

Machining

Finishing

Total

Estimated total machine-hours (MHs)

5,000

10,000

Estimated total fixed manufacturing overhead cost

$

26,500

$

13,500

$

40,000

Estimated variable manufacturing overhead cost

per MH

$

2.00

$

3.00

During the most recent month, the company started and completed two jobs—Job C and Job L.

There were no beginning inventories. Data concerning those two jobs follow:

Job C

Job L

Direct materials

$

12,500

$

8,200

Direct labor cost

$

20,200

$

6,400

Machining machine-hours

3,400

1,600

Finishing machine-hours

2,000

3,000

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:

A) $11,680

B) $28,780

C) $17,100

D) $29,900

193) Sanderlin 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:

Machining

Finishing

Total

Estimated total machine-hours (MHs)

5,000

10,000

Estimated total fixed manufacturing overhead cost

$

26,500

$

13,500

$

40,000

Estimated variable manufacturing overhead cost

per MH

$

2.00

$

3.00

During the most recent month, the company started and completed two jobs—Job C and Job L.

There were no beginning inventories. Data concerning those two jobs follow:

Job C

Job L

Direct materials

$

12,500

$

8,200

Direct labor cost

$

20,200

$

6,400

Machining machine-hours

3,400

1,600

Finishing machine-hours

2,000

3,000

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:

A) $87,666

B) $68,920

C) $13,784

D) $82,704

Estimated fixed manufacturing overhead

$

26,500

Estimated variable manufacturing overhead ($2.00 per

MH × 5,000 MHs)

10,000

Estimated total manufacturing overhead cost (a)

$

36,500

Estimated total machine-hours (b)

MHs

Departmental predetermined overhead rate (a) ÷ (b)

$

194) Collini Corporation has two production departments, Machining and Customizing. The

company uses a job-order costing system and computes a predetermined overhead rate in each

production department. The Machining Department’s predetermined overhead rate is based on

machine-hours and the Customizing 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:

Machining

Customizing

Machine-hours

17,000

15,000

Direct labor-hours

3,000

6,000

Total fixed manufacturing overhead cost

$

102,000

$

61,200

Variable manufacturing overhead per machine-hour

$

1.70

Variable manufacturing overhead per direct labor-hour

$

4.10

During the current month the company started and finished Job T268. The following data were

recorded for this job:

Job T268:

Machining

Customizing

Machine-hours

80

30

Direct labor-hours

30

50

Direct materials

$

720

$

380

Direct labor cost

$

900

$

1,500

The total amount of overhead applied in both departments to Job T268 is closest to:

A) $616

B) $715

C) $2,046

D) $1,331