33.
The Work in Process inventory account of a manufacturing Corporation shows a balance
of $18,000 at the end of an accounting period. The job cost sheets of the two uncompleted
jobs show charges of $6,000 and $3,000 for materials, and charges of $4,000 and $2,000
for direct labor. From this information, it appears that the Corporation is using a
predetermined overhead rate, as a percentage of direct labor costs, of:
2-116
34.
The following T-accounts have been constructed from last year’s records at C&C
Manufacturing:
Raw Materials
Bal
10,000
(b)
252,000
(a)
247,000
5,000
Work In Process
Bal
6,000
(f)
506,000
(b)
161,000
(c)
154,000
(e)
192,500
7,500
Finished Goods
Bal
0
(g)
500,000
(f)
506,000
6,000
Manufacturing Overhead
(b)
91,000
(e)
192,500
(c)
26,000
(d)
78,000
195,000
192,500
2,500
(h)
2,500
Cost of Goods Sold
(g)
500,000
(h)
2,500
C&C Manufacturing uses job-order costing with a predetermined overhead rate and
applies manufacturing overhead to jobs based on direct labor costs. What is the
predetermined overhead rate?
2-118
35.
Bradbeer Corporation uses direct labor-hours in its predetermined overhead rate. At the
beginning of the year, the estimated direct labor-hours were 17,500 hours. At the end of
the year, actual direct labor-hours for the year were 16,000 hours, the actual
manufacturing overhead for the year was $233,000, and manufacturing overhead for the
year was underapplied by $15,400. The estimated manufacturing overhead at the
beginning of the year used in the predetermined overhead rate must have been:
36.
Dagger Corporation uses direct labor-hours in its predetermined overhead rate. At the
beginning of the year, the total estimated manufacturing overhead was $423,870. At the
end of the year, actual direct labor-hours for the year were 19,400 hours, manufacturing
overhead for the year was underapplied by $5,650, and the actual manufacturing overhead
was $418,870. The predetermined overhead rate for the year must have been closest to:
2-120
37.
Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct
labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked
57,000 actual direct labor-hours and incurred $345,000 of actual manufacturing overhead
cost. The Corporation had estimated that it would work 55,000 direct labor-hours during
the year and incur $330,000 of manufacturing overhead cost. The Corporation’s
manufacturing overhead cost for the year was:
2-121
38.
Clear Colors Corporation uses a predetermined overhead rate based on direct labor costs
to apply manufacturing overhead to jobs. At the beginning of the year the Corporation
estimated its total manufacturing overhead cost at $350,000 and its direct labor costs at
$200,000. The actual overhead cost incurred during the year was $362,000 and the actual
direct labor costs incurred on jobs during the year was $208,000. The manufacturing
overhead for the year would be:
2-122
39.
Cribb Corporation uses direct labor-hours in its predetermined overhead rate. At the
beginning of the year, the estimated direct labor-hours were 17,900 hours and the total
estimated manufacturing overhead was $341,890. At the end of the year, actual direct
labor-hours for the year were 16,700 hours and the actual manufacturing overhead for the
year was $336,890. Overhead at the end of the year was:
2-123
40.
Brusveen Corporation applies manufacturing overhead to jobs on the basis of direct labor-
hours. The following information relates to Brusveen for last year:
Estimated
Actual
Direct labor-hours
15,000
14,800
Manufacturing overhead
cost
$300,000
$287,120
Overhead over or underapplied
$287,120
per direct labor-hour
direct labor-hours
$296,000
What was Brusveen’s underapplied or overapplied overhead for last year?
2-124
2-125
41.
Collins Corporation uses a predetermined overhead rate based on direct labor cost to
apply manufacturing overhead to jobs. The following information applies to the
Corporation for the current year:
Direct labor-hours:
Estimated for the year
24,000
Actual hours worked
19,500
Direct labor cost:
Estimated for the year
$300,000
Actual cost incurred
$210,000
Manufacturing overhead:
Estimated for the year
$240,000
Actual cost incurred
$185,000
Actual manufacturing overhead incurred
$185,000
Manufacturing overhead applied to Work in Process:
Predetermined overhead rate (a)
Actual total amount of the allocation base (b)
$210,000
Manufacturing overhead applied (a) × (b)
$168,000
Underapplied (overapplied) manufacturing overhead
2-126
42.
At the beginning of the year, manufacturing overhead for the year was estimated to be
$477,590. At the end of the year, actual direct labor-hours for the year were 29,000 hours,
the actual manufacturing overhead for the year was $472,590, and manufacturing
overhead for the year was overapplied by $110. If the predetermined overhead rate is
based on direct labor-hours, then the estimated direct labor-hours at the beginning of the
year used in the predetermined overhead rate must have been:
2-128
43.
Galbraith Corporation applies overhead cost to jobs on the basis of 70% of direct labor
cost. If Job 201 shows $28,000 of manufacturing overhead applied, the direct labor cost on
the job was:
2-129
44.
Job 593 was recently completed. The following data have been recorded on its job cost
sheet:
Direct materials
$3,190
Direct labor-hours
71
labor-hours
Direct labor wage rate
$15
per labor-hour
Machine-hours
175
machine-hours
Direct materials
$3,190
Direct labor (71 direct labor-hours × $15.00 per direct labor-hour)
Overhead (175 machine-hours × $14.00 per machine-hour)
Total manufacturing cost for Job 593
$6,705
The Corporation applies manufacturing overhead on the basis of machine-hours. The
predetermined overhead rate is $14 per machine-hour. The total cost that would be
recorded on the job cost sheet for Job 593 would be:
2-130
45.
The following data have been recorded for recently completed Job 323 on its job cost
sheet. Direct materials cost was $2,260. A total of 37 direct labor-hours and 141 machine-
hours were worked on the job. The direct labor wage rate is $13 per labor-hour. The
Corporation applies manufacturing overhead on the basis of machine-hours. The
predetermined overhead rate is $14 per machine-hour. The total cost for the job on its job
cost sheet would be:
46.
Spectrum Manufacturing had the following information in its records at the end of the
year:
Predetermined overhead rate
125% of direct labor costs
Estimated direct labor costs
$87,500
Actual direct labor costs
$84,000
Manufacturing Overhead
11,000
13,000
78,000
What was the balance in Manufacturing Overhead, and when closed what will the effect
be on gross margin?
Manufacturing Overhead
11,000
13,000
47.
Parsons Corporation uses a predetermined overhead rate based on direct labor-hours to
apply manufacturing overhead to jobs. Last year, Parsons Corporation incurred $250,000
in actual manufacturing overhead cost. The Manufacturing Overhead account showed that
overhead was overapplied $12,000 for the year. If the predetermined overhead rate was
$8.00 per direct labor-hour, how many hours did the Corporation work during the year?
2-134
48.
During October, Dorinirl Corporation incurred $60,000 of direct labor costs and $5,000 of
indirect labor costs. The journal entry to record the accrual of these wages would include
a:
49.
Soledad Corporation had $36,000 of raw materials on hand on December 1. During the
month, the Corporation purchased an additional $71,000 of raw materials. The journal
entry to record the purchase of raw materials would include a: