40) Steele Corporation uses a predetermined overhead rate based on machine-hours to apply
manufacturing overhead to jobs. Steele Corporation has provided the following estimated costs
for next year:
Direct materials
$
20,000
Direct labor
$
60,000
Sales commissions
$
80,000
Salary of production supervisor
$
40,000
Indirect materials
$
8,000
Advertising expense
$
16,000
Rent on factory equipment
$
20,000
Steele estimates that 10,000 direct labor-hours and 16,000 machine-hours will be worked during
the year. The predetermined overhead rate per hour will be:
A) $4.25
B) $8.00
C) $9.00
D) $10.25
Salary of production supervisor
$
Indirect materials
8,000
Rent on factory equipment
Manufacturing overhead
$
41) Helland Corporation uses a job-order costing system with a single plantwide predetermined
overhead rate based on direct labor-hours. The company based its predetermined overhead rate
for the current year on the following data:
Total direct labor-hours
30,000
Total fixed manufacturing overhead cost
$
189,000
Variable manufacturing overhead per direct labor-hour
$
2.50
The predetermined overhead rate is closest to:
A) $2.50 per direct labor-hour
B) $11.30 per direct labor-hour
C) $6.30 per direct labor-hour
D) $8.80 per direct labor-hour
42) Laflame 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:
Total machine-hours
70,000
Total fixed manufacturing overhead cost
$
357,000
Variable manufacturing overhead per machine-hour
$
3.90
The estimated total manufacturing overhead is closest to:
A) $273,000
B) $630,000
C) $357,004
D) $357,000
24
43) Almaraz Corporation has two manufacturing departments—Forming and Finishing. The
company used the following data at the beginning of the year to calculate predetermined
overhead rates:
Forming
Finishing
Estimated total machine-hours (MHs)
7,000
3,000
10,000
Estimated total fixed manufacturing overhead cost
$
40,600
$
8,100
$
48,700
Estimated variable manufacturing overhead cost per
MH
$
1.30
$
2.80
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on
machine-hours. That predetermined manufacturing overhead rate is closest to:
A) $6.62
B) $4.87
C) $4.10
D) $7.10
44) Bernson Corporation is using a predetermined overhead rate that was based on estimated
total fixed manufacturing overhead of $492,000 and 30,000 machine-hours for the period.The
company incurred actual total fixed manufacturing overhead of $517,000 and 28,300 total
machine-hours during the period. The amount of manufacturing overhead that would have been
applied to all jobs during the period is closest to:
A) $464,120
B) $492,000
C) $487,703
D) $25,000
45) Beat 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:
Total machine-hours
40,000
Total fixed manufacturing overhead cost
$
344,000
Variable manufacturing overhead per machine-hour
$
3.90
Recently, Job M759 was completed. It required 60 machine-hours. The amount of overhead
applied to Job M759 is closest to:
A) $750
B) $516
C) $984
D) $234
28
46) 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:
Forming
Estimated total machine-hours (MHs)
9,000
1,000
10,000
Estimated total fixed manufacturing overhead cost
$
52,200
$
2,400
$
54,600
Estimated variable manufacturing overhead cost
per MH
$
2.00
$
2.10
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:
Job B
Job H
Forming machine-hours
6,100
2,900
Assembly machine-hours
400
600
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:
A) $48,555
B) $35,490
C) $2,988
D) $45,567
30
47) Parido Corporation has two manufacturing departments—Casting and Assembly. The
company used the following data at the beginning of the year to calculate predetermined
overhead rates:
Forming
Estimated total machine-hours (MHs)
8,000
2,000
10,000
Estimated total fixed manufacturing overhead cost
$
44,000
$
4,200
$
48,200
Estimated variable manufacturing overhead cost
per MH
$
1.90
$
3.00
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
Casting machine-hours
5,400
2,600
Assembly machine-hours
800
1,200
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) $8,328
B) $26,372
C) $18,316
D) $18,044
48) Juanita Corporation uses a job-order costing system and applies overhead on the basis of
direct labor cost. At the end of October, Juanita had one job still in process. The job cost sheet
for this job contained the following information:
Direct materials
$
480
Direct labor
$
150
Manufacturing overhead applied
$
600
An additional $100 of labor was needed in November to complete this job. For this job, how
much should Juanita have transferred to finished goods inventory in November when it was
completed?
A) $1,330
B) $500
C) $1,230
D) $1,730
Direct materials
$
Direct labor ($150 + $100)
Manufacturing overhead applied (4.0 × $250)
1,000
Total product cost
$
1,730
49) Carradine 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 $105,000, variable manufacturing
overhead of $3.00 per machine-hour, and 70,000 machine-hours. The company recently
completed Job P233 which required 60 machine-hours. The amount of overhead applied to Job
P233 is closest to:
A) $90
B) $270
C) $450
D) $180
50) Fusaro Corporation uses a predetermined overhead rate base on machine-hours that it
recalculates at the beginning of each year. The company has provided the following data for the
most recent year.
Estimated total fixed manufacturing overhead from
the beginning of the year
$
684,000
Estimated activity level from the beginning of the
year
40,000
machine-hours
Actual total fixed manufacturing overhead
$
616,000
Actual activity level
37,700
machine-hours
The amount of manufacturing overhead that would have been applied to all jobs during the
period is closest to:
A) $644,670
B) $684,000
C) $68,000
D) $580,580
Estimated total fixed manufacturing overhead (a)
$
684,000
Estimated activity level (b)
Predetermined overhead rate (a) ÷ (b)
Actual activity level
Manufacturing overhead applied
$
644,670
51) Koelsch Corporation has two manufacturing departments—Molding and Customizing. The
company used the following data at the beginning of the year to calculate predetermined
overhead rates:
Molding
Customizing
Total
Estimated total machine-hours (MHs)
1,000
9,000
10,000
Estimated total fixed manufacturing overhead cost
$
4,000
$
25,200
$
29,200
Estimated variable manufacturing overhead cost
per MH
$
2.00
$
3.00
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:
Job F
Direct materials
$
12,300
$
8,400
Direct labor cost
$
18,200
$
6,800
Molding 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 K is closest to:
A) $72,561
B) $79,817
C) $24,187
D) $48,374
Estimated fixed manufacturing overhead
$
4,000
Estimated variable manufacturing overhead ($2.00 per MH ×
1,000 MHs)
2,000
Estimated total manufacturing overhead cost
$
6,000
Estimated fixed manufacturing overhead
$
25,200
Estimated variable manufacturing overhead ($3.00 per MH ×
9,000 MHs)
27,000
Estimated total manufacturing overhead cost
$
52,200
37
52) Thach 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 $665,000, variable manufacturing
overhead of $3.00 per machine-hour, and 70,000 machine-hours. Recently, Job T321 was
completed with the following characteristics:
Number of units in the job
30
Total machine-hours
90
Direct materials
$
630
Direct labor cost
$
2,880
The unit product cost for Job T321 is closest to:
A) $117.00
B) $58.50
C) $154.50
D) $51.50
53) Tancredi 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:
Molding
Customizing
Total
Estimated total machine-hours (MHs)
5,000
5,000
10,000
Estimated total fixed manufacturing overhead cost
$
22,000
$
11,500
$
33,500
Estimated variable manufacturing overhead cost
per MH
$
1.80
$
3.00
During the most recent month, the company started and completed two jobs—Job E and Job J.
There were no beginning inventories. Data concerning those two jobs follow:
Job E
Job J
Direct materials
$
12,800
$
7,000
Direct labor cost
$
17,600
$
7,700
Machining machine-hours
3,400
1,600
Customizing machine-hours
2,000
3,000
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on
machine-hours. If both jobs are sold during the month, the company’s cost of goods sold for the
month would be closest to:
A) $61,450
B) $41,150
C) $110,808
D) $102,600
Estimated fixed manufacturing overhead
$
22,000
Estimated variable manufacturing overhead ($($1.80 per MH
× 5,000 MHs)
9,000
Estimated total manufacturing overhead cost
$
31,000
Estimated fixed manufacturing overhead
$
11,500
Estimated variable manufacturing overhead ($3.00 per MH ×
5,000 MHs)
15,000
Estimated total manufacturing overhead cost
$
26,500