261
262
195) 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 job cost for Job T268 is closest to:
A) $2,595
B) $616
C) $4,831
D) $2,236
264
196) 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
If the company marks up its manufacturing costs by 40% then the selling price for Job T268
would be closest to:
A) $1,932.40
B) $6,763.40
C) $4,831.00
D) $7,440.00
266
197) Heroux 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:
Forming
Customizing
Total
Estimated total machine-hours (MHs)
3,000
7,000
10,000
Estimated total fixed manufacturing overhead
cost
$
16,500
$
20,300
$
36,800
Estimated variable manufacturing overhead cost
per MH
$
1.70
$
2.50
During the most recent month, the company started and completed two jobs—Job A and Job H.
There were no beginning inventories. Data concerning those two jobs follow:
Job A
Job H
Direct materials
$
12,800
6,700
Direct labor cost
$
24,300
7,800
Forming machine-hours
2,000
1,000
Customizing machine-hours
2,800
4,200
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on
machine-hours. The amount of manufacturing overhead applied to Job A is closest to:
A) $28,512
B) $16,632
C) $11,880
D) $17,664
268
198) Heroux 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:
Forming
Customizing
Total
Estimated total machine-hours (MHs)
3,000
7,000
10,000
Estimated total fixed manufacturing overhead
cost
$
16,500
$
20,300
$
36,800
Estimated variable manufacturing overhead cost
per MH
$
1.70
$
2.50
During the most recent month, the company started and completed two jobs—Job A and Job H.
There were no beginning inventories. Data concerning those two jobs follow:
Job A
Job H
Direct materials
$
12,800
6,700
Direct labor cost
$
24,300
7,800
Forming machine-hours
2,000
1,000
Customizing machine-hours
2,800
4,200
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on
machine-hours. The amount of manufacturing overhead applied to Job H is closest to:
A) $19,136
B) $5,940
C) $30,888
D) $24,948
270
199) Heroux 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:
Forming
Customizing
Total
Estimated total machine-hours (MHs)
3,000
7,000
10,000
Estimated total fixed manufacturing overhead
cost
$
16,500
$
20,300
$
36,800
Estimated variable manufacturing overhead cost
per MH
$
1.70
$
2.50
During the most recent month, the company started and completed two jobs—Job A and Job H.
There were no beginning inventories. Data concerning those two jobs follow:
Job A
Job H
Direct materials
$
12,800
6,700
Direct labor cost
$
24,300
7,800
Forming machine-hours
2,000
1,000
Customizing machine-hours
2,800
4,200
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:
A) $14,400
B) $15,120
C) $28,512
D) $29,520
272
200) Heroux 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:
Forming
Customizing
Total
Estimated total machine-hours (MHs)
3,000
7,000
10,000
Estimated total fixed manufacturing overhead
cost
$
16,500
$
20,300
$
36,800
Estimated variable manufacturing overhead cost
per MH
$
1.70
$
2.50
During the most recent month, the company started and completed two jobs—Job A and Job H.
There were no beginning inventories. Data concerning those two jobs follow:
Job A
Job H
Direct materials
$
12,800
6,700
Direct labor cost
$
24,300
7,800
Forming machine-hours
2,000
1,000
Customizing machine-hours
2,800
4,200
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:
A) $22,680
B) $30,888
C) $29,880
D) $7,200
201) Tiff Corporation has two production departments, Casting and Assembly. The company
uses a job-order costing system and computes a predetermined overhead rate in each production
department. The Casting 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:
Casting
Customizing
Machine-hours
17,000
10,000
Direct labor-hours
1,000
5,000
Total fixed manufacturing overhead cost
$
129,200
46,500
Variable manufacturing overhead per machine-hour
$
1.80
Variable manufacturing overhead per direct labor-hour
3.80
During the current month the company started and finished Job P131. The following data were
recorded for this job:
Job P131:
Machining
Customizing
Machine-hours
90
20
Direct labor-hours
20
60
The predetermined overhead rate for the Casting Department is closest to:
A) $9.40 per machine-hour
B) $7.60 per machine-hour
C) $1.80 per machine-hour
D) $31.96 per machine-hour
275
202) Tiff Corporation has two production departments, Casting and Assembly. The company
uses a job-order costing system and computes a predetermined overhead rate in each production
department. The Casting 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:
Casting
Customizing
Machine-hours
17,000
10,000
Direct labor-hours
1,000
5,000
Total fixed manufacturing overhead cost
$
129,200
46,500
Variable manufacturing overhead per machine-hour
$
1.80
Variable manufacturing overhead per direct labor-hour
3.80
During the current month the company started and finished Job P131. The following data were
recorded for this job:
Job P131:
Machining
Customizing
Machine-hours
90
20
Direct labor-hours
20
60
The amount of overhead applied in the Assembly Department to Job P131 is closest to:
A) $228.00
B) $558.00
C) $65,500.00
D) $786.00
203) Eisentrout 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
16,000
11,000
Direct labor-hours
2,000
6,000
Total fixed manufacturing overhead cost
$
104,000
56,400
Variable manufacturing overhead per machine-hour
$
2.10
Variable manufacturing overhead per direct labor-hour
3.30
During the current month the company started and finished Job T272. The following data were
recorded for this job:
Job T272:
Machining
Customizing
Machine-hours
60
30
Direct labor-hours
10
60
The estimated total manufacturing overhead for the Machining Department is closest to:
A) $137,600
B) $104,000
C) $33,600
D) $310,933
204) Eisentrout 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
16,000
11,000
Direct labor-hours
2,000
6,000
Total fixed manufacturing overhead cost
$
104,000
56,400
Variable manufacturing overhead per machine-hour
$
2.10
Variable manufacturing overhead per direct labor-hour
3.30
During the current month the company started and finished Job T272. The following data were
recorded for this job:
Job T272:
Machining
Customizing
Machine-hours
60
30
Direct labor-hours
10
60
The estimated total manufacturing overhead for the Customizing Department is closest to:
A) $40,950
B) $19,800
C) $56,400
D) $76,200
205) Eisentrout 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
16,000
11,000
Direct labor-hours
2,000
6,000
Total fixed manufacturing overhead cost
$
104,000
56,400
Variable manufacturing overhead per machine-hour
$
2.10
Variable manufacturing overhead per direct labor-hour
3.30
During the current month the company started and finished Job T272. The following data were
recorded for this job:
Job T272:
Machining
Customizing
Machine-hours
60
30
Direct labor-hours
10
60
The predetermined overhead rate for the Machining Department is closest to:
A) $22.93 per machine-hour
B) $6.50 per machine-hour
C) $2.10 per machine-hour
D) $8.60 per machine-hour
206) Eisentrout 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
16,000
11,000
Direct labor-hours
2,000
6,000
Total fixed manufacturing overhead cost
$
104,000
56,400
Variable manufacturing overhead per machine-hour
$
2.10
Variable manufacturing overhead per direct labor-hour
3.30
During the current month the company started and finished Job T272. The following data were
recorded for this job:
Job T272:
Machining
Customizing
Machine-hours
60
30
Direct labor-hours
10
60
The predetermined overhead rate for the Customizing Department is closest to:
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