41
42
54) Session 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
70,000
Total fixed manufacturing overhead cost
$
511,000
Variable manufacturing overhead per direct labor-hour
$
2.10
Recently, Job K913 was completed with the following characteristics:
150
$
705
$
4,650
The total job cost for Job K913 is closest to:
A) $6,060
B) $2,115
C) $6,765
D) $5,355
55) Pebbles Corporation has two manufacturing departments—Casting and Finishing. The
company used the following data at the beginning of the year to calculate predetermined
overhead rates:
Casting
Finishing
Total
Estimated total machine-hours (MHs)
2,000
3,000
5,000
Estimated total fixed manufacturing overhead cost
$
9,800
$
6,300
$
16,100
Estimated variable manufacturing overhead cost per
MH
$
2.00
$
2.40
During the most recent month, the company started and completed two jobs—Job A and Job L.
There were no beginning inventories. Data concerning those two jobs follow:
Job A
Job L
Direct materials
$
15,400
$
9,600
Direct labor cost
$
24,900
$
6,200
Casting machine-hours
1,400
600
Finishing machine-hours
1,200
1,800
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on
machine-hours. The total manufacturing cost assigned to Job L is closest to:
A) $9,600
B) $6,200
C) $28,904
D) $13,104
Estimated fixed manufacturing overhead
$
9,800
Estimated variable manufacturing overhead ($2.00 per MH ×
2,000 MHs)
4,000
Estimated total manufacturing overhead cost
$
13,800
Estimated fixed manufacturing overhead
$
6,300
Estimated variable manufacturing overhead ($2.40 per MH ×
3,000 MHs)
7,200
Estimated total manufacturing overhead cost
45
56) Stockmaster 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
Assembly
Total
Estimated total machine-hours (MHs)
5,000
5,000
10,000
Estimated total fixed manufacturing overhead cost
$
27,000
$
10,500
$
37,500
Estimated variable manufacturing overhead cost
per MH
$
1.10
$
2.80
During the most recent month, the company started and completed two jobs—Job C and Job H.
There were no beginning inventories. Data concerning those two jobs follow:
Job C
Job H
Direct materials
$
11,200
$
7,500
Direct labor cost
$
21,900
$
7,800
Forming machine-hours
3,400
1,600
Assembly machine-hours
2,000
3,000
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on
machine-hours and uses a markup of 40% on manufacturing cost to establish selling prices. The
calculated selling price for Job C is closest to:
A) $96,989
B) $88,172
C) $25,192
D) $62,980
Estimated fixed manufacturing overhead
$
27,000
Estimated variable manufacturing overhead ($1.10 per MH ×
5,000 MHs)
5,500
Estimated total manufacturing overhead cost
$
32,500
Estimated fixed manufacturing overhead
$
10,500
Estimated variable manufacturing overhead ($2.80 per MH ×
5,000 MHs)
14,000
Estimated total manufacturing overhead cost
$
24,500
57) Atteberry 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)
6,000
4,000
10,000
Estimated total fixed manufacturing overhead cost
$
30,000
$
11,200
$
41,200
Estimated variable manufacturing overhead cost
per MH
$
2.00
$
2.40
During the most recent month, the company started and completed two jobs—Job E and Job L.
There were no beginning inventories. Data concerning those two jobs follow:
Job E
Job L
Direct materials
$
13,400
$
9,100
Direct labor cost
$
24,500
$
7,000
Machining machine-hours
4,100
1,900
Finishing machine-hours
1,600
2,400
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on
machine-hours. The total manufacturing cost assigned to Job E is closest to:
A) $24,500
B) $35,796
C) $13,400
D) $73,696
Estimated fixed manufacturing overhead
$
30,000
Estimated variable manufacturing overhead ($2.00 per MH ×
6,000 MHs)
12,000
Estimated total manufacturing overhead cost
$
42,000
Estimated fixed manufacturing overhead
$
11,200
Estimated variable manufacturing overhead ($2.40 per MH ×
4,000 MHs)
Estimated total manufacturing overhead cost
50
58) Coates 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 $249,000, variable manufacturing
overhead of $3.80 per machine-hour, and 30,000 machine-hours. The company has provided the
following data concerning Job X784 which was recently completed:
Job E’s manufacturing cost:
Number of units in the job
50
Total machine-hours
250
Direct materials
$
470
Direct labor cost
$
5,500
If the company marks up its unit product costs by 30% then the selling price for a unit in Job
X784 is closest to:
A) $253.87
B) $233.87
C) $53.97
D) $155.22
52
59) Sutter 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
10,000
Total fixed manufacturing overhead cost
$
35,000
Variable manufacturing overhead per machine-hour
$
2.20
Recently, Job T369 was completed with the following characteristics:
Number of units in the job
10
Total machine-hours
40
Direct materials
$
750
Direct labor cost
$
1,560
If the company marks up its unit product costs by 20% then the selling price for a unit in Job
T369 is closest to:
A) $324.56
B) $304.56
C) $277.20
D) $50.76
54
60) Doakes 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
60,000
Total fixed manufacturing overhead cost
$
378,000
Variable manufacturing overhead per direct labor-hour
$
2.20
Recently, Job M843 was completed with the following characteristics:
Number of units in the job
60
Total direct labor-hours
120
Direct materials
$
630
Direct labor cost
$
2,400
The unit product cost for Job M843 is closest to:
A) $33.75
B) $67.50
C) $27.50
D) $50.50
61) Placker 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 $155,000, variable manufacturing
overhead of $3.40 per machine-hour, and 50,000 machine-hours. Recently, Job A881 was
completed with the following characteristics:
Total machine-hours
100
Direct materials
$
645
Direct labor cost
$
2,300
The total job cost for Job A881 is closest to:
A) $3,595
B) $2,945
C) $2,950
D) $1,295
Direct materials
645
Direct labor
2,300
Manufacturing overhead applied
650
Total cost of Job A881
3,595
57
62) Tomey Corporation has two production departments, Forming and Finishing. The company
uses a job-order costing system and computes a predetermined overhead rate in each production
department. The Forming Department’s predetermined overhead rate is based on machine-hours
and the Finishing 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:
Forming
Finishing
Machine-hours
18,000
14,000
Direct labor-hours
2,000
8,000
Total fixed manufacturing overhead cost
$
99,000
$
70,400
Variable manufacturing overhead per machine-hour
$
2.10
Variable manufacturing overhead per direct labor-hour
$
3.70
During the current month the company started and finished Job T617. The following data were
recorded for this job:
Job T617:
Forming
Finishing
Machine-hours
90
20
Direct labor-hours
30
60
Direct materials
$
940
$
350
Direct labor cost
$
960
$
1920
The total job cost for JobT617 is closest to:
A) $5,604
B) $2,584
C) $684
D) $3,020
63) Molash Corporation has two manufacturing departments—Machining and Assembly. The
company used the following data at the beginning of the year to calculate predetermined
overhead rates:
Machining
Assembly
Total
Estimated total machine-hours (MHs)
2000
3000
5000
Estimated total fixed manufacturing overhead cost
$
9,400
$
8,100
$
17,500
Estimated variable manufacturing overhead cost per
MH
$
1.80
$
2.40
During the most recent month, the company started and completed two jobs—Job B and Job L.
There were no beginning inventories. Data concerning those two jobs follow:
Job B
Job L
Direct materials
$
14,400
$
7,100
Direct labor cost
$
23,500
$
6,700
Machining machine-hours
1,400
600
Assembly machine-hours
1,200
1,800
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 L is closest to:
A) $40,320
B) $41,933
C) $13,440
D) $26,880
Estimated fixed manufacturing overhead
$
9,400
Estimated variable manufacturing overhead ($1.80 per
MH × 2,000 MHs)
Estimated total manufacturing overhead cost (a)
$
13,000
Estimated total machine-hours (b)
2,000
MHs
Departmental predetermined overhead rate (a) ÷ (b)
per
MH