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64) Columbo 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
17,000
10,000
Direct labor-hours
1,000
9,000
Total fixed manufacturing overhead cost
$
110,500
$
78,300
Variable manufacturing overhead per machine-hour
$
1.60
Variable manufacturing overhead per machine-hour
$
3.30
During the current month the company started and finished Job A948. The following data were
recorded for this job:
Job A948:
Forming
Finishing
Machine-hours
70
30
Direct labor-hours
10
50
Direct materials
$
650
$
330
Direct labor cost
$
380
$
1,900
If the company marks up its manufacturing costs by 40% then the selling price for Job A948
would be closest to:
A) $6,197.80
B) $1,770.80
C) $4,427.00
D) $6,818.00
65) Lotz 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
8,000
10,000
Estimated total fixed manufacturing overhead cost
$
10,200
$
19,200
$
29,400
Estimated variable manufacturing overhead cost
per MH
$
1.20
$
2.20
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
Job K
Direct materials
$
14,400
$
7,100
Direct labor cost
$
22,500
$
6,600
Casting machine-hours
1,400
600
Finishing machine-hours
3,200
4,800
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 F is closest to:
A) $30,220
B) $90,660
C) $60,440
D) $96,100
65
66) Ashe 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:
Machining
Customizing
Total
Estimated total machine-hours (MHs)
1,000
4,000
5,000
Estimated total fixed manufacturing overhead
cost
$
4,700
$
9,200
$
13,900
Estimated variable manufacturing overhead cost
per MH
$
1.10
$
2.60
During the most recent month, the company started and completed two jobs--Job B and Job K.
There were no beginning inventories. Data concerning those two jobs follow:
Job B
Job K
Machining machine-hours
700
300
Customizing machine-hours
1,600
2,400
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 K is closest to:
A) $11,760
B) $1,740
C) $13,716
D) $13,500
67
67) Boward Corporation has two production departments, Milling and Assembly. The company
uses a job-order costing system and computes a predetermined overhead rate in each production
department. The Milling 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:
Milling
Assembly
Machine-hours
18,000
12,000
Direct labor-hours
2,000
7,000
Total fixed manufacturing overhead cost
$
120,600
$
76,300
Variable manufacturing overhead per machine-hour
$
2.00
Variable manufacturing overhead per direct labor-hour
$
4.30
During the current month the company started and finished Job T818. The following data were
recorded for this job:
Job T818:
Milling
Assembly
Machine-hours
50
30
Direct labor-hours
10
40
The total amount of overhead applied in both departments to Job T818 is closest to:
A) $1,651
B) $608
C) $435
D) $1,043
69
68) Malakan Corporation has two production departments, Machining and Finishing. 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 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:
Machining
Finishing
Machine-hours
18,000
11,000
Direct labor-hours
2,000
9,000
Total fixed manufacturing overhead cost
$
102,600
$
96,300
Variable manufacturing overhead per machine-hour
$
2.10
Variable manufacturing overhead per direct labor-hour
$
3.90
During the current month the company started and finished Job K368. The following data were
recorded for this job:
Job K368:
Machining
Finishing
Machine-hours
80
30
Direct labor-hours
20
40
The amount of overhead applied in the Machining Department to Job K368 is closest to:
A) $856.00
B) $168.00
C) $624.00
D) $140,400.00
71
69) Mahon Corporation has two production departments, Casting and Customizing. 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 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:
Casting
Customizing
Machine-hours
18,000
14,000
Direct labor-hours
2,000
7,000
Total fixed manufacturing overhead cost
$
124,200
$
68,600
Variable manufacturing overhead per machine-hour
$
1.90
Variable manufacturing overhead per direct labor-hour
$
3.80
During the current month the company started and finished Job T138. The following data were
recorded for this job:
Job T138:
Casting
Customizing
Machine-hours
70
30
Direct labor-hours
10
60
The amount of overhead applied in the Customizing Department to Job T138 is closest to:
A) $588.00
B) $95,200.00
C) $816.00
D) $228.00
73
70) Marioni 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)
7,000
3,000
10,000
Estimated total fixed manufacturing overhead cost
$
37,100
$
9,000
$
46,100
Estimated variable manufacturing overhead cost per
MH
$
1.70
$
2.60
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
4,800
2,200
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. The manufacturing overhead applied to
Job B is closest to:
A) $6,720
B) $33,600
C) $40,320
D) $39,480
71) Bassett Corporation has two production departments, Milling and Customizing. The
company uses a job-order costing system and computes a predetermined overhead rate in each
production department. The Milling 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:
Milling
Customizing
Machine-hours
16,000
12,000
Direct labor-hours
2,000
8,000
Total fixed manufacturing overhead cost
$
118,400
$
87,200
Variable manufacturing overhead per machine-hour
$
2.10
Variable manufacturing overhead per direct labor-hour
$
3.30
The predetermined overhead rate for the Milling Department is closest to:
A) $19.00 per machine-hour
B) $2.10 per machine-hour
C) $9.50 per machine-hour
D) $7.40 per machine-hour
72) Fatzinger Corporation has two production departments, Milling and Assembly. The company
uses a job-order costing system and computes a predetermined overhead rate in each production
department. The Milling 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:
Milling
Assembly
Machine-hours
20,000
14,000
Direct labor-hours
2,000
7,000
Total fixed manufacturing overhead cost
$
132,000
$
57,400
Variable manufacturing overhead per machine-hour
$
2.30
Variable manufacturing overhead per direct labor-hour
$
3.40
The predetermined overhead rate for the Assembly Department is closest to:
A) $8.20 per direct labor-hour
B) $3.40 per direct labor-hour
C) $4.06 per direct labor-hour
D) $11.60 per direct labor-hour
73) Swango Corporation has two production departments, Casting and Customizing. 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 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:
Casting
Customizing
Machine-hours
19,000
11,000
Direct labor-hours
1,000
8,000
Total fixed manufacturing overhead cost
$
138,700
$
86,400
Variable manufacturing overhead per machine-hour
$
1.60
Variable manufacturing overhead per direct labor-hour
$
3.00
The estimated total manufacturing overhead for the Customizing Department is closest to:
A) $24,000
B) $110,400
C) $86,400
D) $60,379
74) Tarrant 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)
1,000
4,000
5,000
Estimated total fixed manufacturing overhead cost
$
5,700
$
11,200
$
16,900
Estimated variable manufacturing overhead cost per
MH
$
1.30
$
2.90
Assume that the company uses departmental predetermined overhead rates with machine-hours
as the allocation base in both departments. The departmental predetermined overhead rate in the
Casting Department is closest to:
A) $5.70
B) $1.30
C) $5.96
D) $7.00
75) Prayer 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
19,000
13,000
Direct labor-hours
1,000
8,000
Total fixed manufacturing overhead cost
$
110,200
$
68,800
Variable manufacturing overhead per machine-hour
$
2.00
Variable manufacturing overhead per direct labor-hour
$
3.60
The estimated total manufacturing overhead for the Machining Department is closest to:
A) $148,200
B) $110,200
C) $38,000
D) $299,725
76) Camm 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)
3,000
2,000
5000
Estimated total fixed manufacturing overhead cost
$
12,600
$
4,600
$
17,200
Estimated variable manufacturing overhead cost per
MH
$
1.70
$
2.50
Assume that the company uses departmental predetermined overhead rates with machine-hours
as the allocation base in both departments. The departmental predetermined overhead rate in the
Assembly Department is closest to:
A) $2.50
B) $2.30
C) $4.80
D) $5.46
