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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:
Total direct labor-hours
150
Direct materials
$
705
Direct labor cost
$
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
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
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
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
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
