77) Huang Aerospace Corporation manufactures aviation control panels in two departments,
Fabrication and Assembly. In the Fabrication department, Huang uses a predetermined overhead
rate of $30 per machine-hour. In the Assembly department, Huang uses a predetermined
overhead rate of $12 per direct labor-hour. During the current year, Job #X2984 incurred the
following number of hours in each department:
Fabrication
Assembly
Machine-hours
40
12
Direct labor-hours
3
25
What is the total amount of manufacturing overhead that Huang should have applied to Job
#X2984 during the current year?
A) $1,200
B) $1,500
C) $1,560
D) $1,734
(a)
DLH
allocation base (b)
applied (a) × (b)
78) Sargent Corporation applies overhead cost to jobs on the basis of 80% of direct labor cost. If
Job 210 shows $10,000 of manufacturing overhead cost applied, how much was the direct labor
cost on the job?
A) $12,500
B) $11,000
C) $8,000
D) $10,000
79) Kreuzer Corporation is using a predetermined overhead rate of $22.30 per machine-hour that
was based on estimated total fixed manufacturing overhead of $446,000 and 20,000 machine-
hours for the period. The company incurred actual total fixed manufacturing overhead of
$409,000 and 18,200 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) $446,000
B) $37,000
C) $372,190
D) $405,860
80) Kavin 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.
Predetermined overhead rate
$
23.60
per machine-
hour
Estimated total fixed manufacturing overhead from the
beginning of the year
$
708,000
Estimated activity level from the beginning of the year
30,000
machine-hours
Actual total fixed manufacturing overhead
$
752,000
Actual activity level
28,100
machine-hours
The amount of manufacturing overhead that would have been applied to all jobs during the
period is closest to:
A) $663,160
B) $708,000
C) $44,000
D) $704,373
Predetermined overhead rate
$
Actual activity level
Manufacturing overhead applied
$
663,160
81) Job 910 was recently completed. The following data have been recorded on its job cost sheet:
Direct materials
$
3,193
Direct labor-hours
21
labor-hours
Direct labor wage rate
$
12
per labor-hour
Machine-hours
166
machine-hours
The Corporation applies manufacturing overhead on the basis of machine-hours. The
predetermined overhead rate is $15 per machine-hour. The total cost that would be recorded on
the job cost sheet for Job 910 would be:
A) $3,220
B) $3,760
C) $5,935
D) $3,445
Direct materials
3,193
hour)
Overhead (166 machine-hours × $15.00 per machine-hour)
2,490
Total manufacturing cost for Job 910
5,935
82) Grib Corporation uses a predetermined overhead rate based on direct labor cost to apply
manufacturing overhead to jobs. The predetermined overhead rates for the year are 200% of
direct labor cost for Department A and 50% of direct labor cost for Department B. Job 436,
started and completed during the year, was charged with the following costs:
Dept. A
Dept. B
Direct materials
$
50,000
10,000
Direct labor
?
60,000
Manufacturing overhead
$
80,000
?
The total manufacturing cost assigned to Job 436 was:
A) $360,000
B) $390,000
C) $270,000
D) $480,000
Dept. A
Direct materials
$
50,000
$
10,000
Direct labor
$
60,000
Manufacturing overhead
$
80,000
170,00
$
100,00
$
270,000
Total product cost
83) The following data have been recorded for recently completed Job 450 on its job cost sheet.
Direct materials cost was $3,044. A total of 46 direct labor-hours and 104 machine-hours were
worked on the job. The direct labor wage rate is $15 per labor-hour. The Corporation applies
manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $13
per machine-hour. The total cost for the job on its job cost sheet would be:
A) $4,332
B) $3,734
C) $3,072
D) $5,086
84) Dejarnette 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
80,000
Total fixed manufacturing overhead cost
416,000
Variable manufacturing overhead per machine-hour
3.10
The estimated total manufacturing overhead is closest to:
A) $416,003
B) $248,000
C) $664,000
D) $416,000
85) Dejarnette 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
80,000
Total fixed manufacturing overhead cost
416,000
Variable manufacturing overhead per machine-hour
3.10
The predetermined overhead rate is closest to:
A) $8.30 per machine-hour
B) $11.40 per machine-hour
C) $5.20 per machine-hour
D) $3.10 per machine-hour
86) Odonnel 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 total fixed manufacturing overhead cost of $36,000, variable
manufacturing overhead of $2.80 per direct labor-hour, and 10,000 direct labor-hours.
The estimated total manufacturing overhead is closest to:
A) $64,000
B) $36,000
C) $28,000
D) $36,003
87) Odonnel 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 total fixed manufacturing overhead cost of $36,000, variable
manufacturing overhead of $2.80 per direct labor-hour, and 10,000 direct labor-hours.
The predetermined overhead rate is closest to:
A) $2.80 per direct labor-hour
B) $6.40 per direct labor-hour
C) $3.60 per direct labor-hour
D) $9.20 per direct labor-hour
91
88) Morataya 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)
7,000
3,000
10,000
Estimated total fixed manufacturing overhead cost
$
39,200
$
6,600
45,800
Estimated variable manufacturing overhead cost
per MH
$
1.90
$
2.10
During the most recent month, the company started and completed two jobs—Job B and Job G.
There were no beginning inventories. Data concerning those two jobs follow:
Job B
Job G
Direct materials
$
14,800
$
8,300
Direct labor cost
$
22,000
$
8,900
Machining machine-hours
4,800
2,200
Assembly machine-hours
1,200
1,800
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on
machine-hours. That predetermined manufacturing overhead rate is closest to:
A) $4.00
B) $7.50
C) $4.58
D) $6.54
93
89) Morataya 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)
7,000
3,000
10,000
Estimated total fixed manufacturing overhead cost
$
39,200
$
6,600
45,800
Estimated variable manufacturing overhead cost
per MH
$
1.90
$
2.10
During the most recent month, the company started and completed two jobs—Job B and Job G.
There were no beginning inventories. Data concerning those two jobs follow:
Job B
Job G
Direct materials
$
14,800
$
8,300
Direct labor cost
$
22,000
$
8,900
Machining machine-hours
4,800
2,200
Assembly machine-hours
1,200
1,800
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) $31,392
B) $27,480
C) $39,240
D) $7,848
95
90) Morataya 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)
7,000
3,000
10,000
Estimated total fixed manufacturing overhead cost
$
39,200
$
6,600
45,800
Estimated variable manufacturing overhead cost
per MH
$
1.90
$
2.10
During the most recent month, the company started and completed two jobs—Job B and Job G.
There were no beginning inventories. Data concerning those two jobs follow:
Job B
Job G
Direct materials
$
14,800
$
8,300
Direct labor cost
$
22,000
$
8,900
Machining machine-hours
4,800
2,200
Assembly machine-hours
1,200
1,800
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on
machine-hours. The amount of manufacturing overhead applied to Job G is closest to:
A) $14,388
B) $26,160
C) $11,772
D) $18,320
91) Housholder 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
$
310,000
Estimated activity level from the beginning of the year
20,000
machine-hours
Actual total fixed manufacturing overhead
$
338,000
Actual activity level
18,300
machine-hours
The predetermined overhead rate is closest to:
A) $18.47
B) $16.94
C) $16.90
D) $15.50
Estimated total fixed manufacturing overhead (a)
$
310,000
Estimated activity level (b)
Predetermined overhead rate (a) ÷ (b)
$
92) Housholder 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
$
310,000
Estimated activity level from the beginning of the year
20,000
machine-hours
Actual total fixed manufacturing overhead
$
338,000
Actual activity level
18,300
machine-hours
The amount of manufacturing overhead that would have been applied to all jobs during the
period is closest to:
A) $28,000
B) $309,270
C) $310,000
D) $283,650
Estimated total fixed manufacturing overhead (a)
$
310,000
Estimated activity level (b)
Predetermined overhead rate (a) ÷ (b)
$
Actual activity level
Manufacturing overhead applied
$
283,650
93) Gerstein 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 total fixed manufacturing overhead cost of $90,000, variable
manufacturing overhead of $3.70 per direct labor-hour, and 50,000 direct labor-hours. The
company recently completed Job M800 which required 150 direct labor-hours.
The estimated total manufacturing overhead is closest to:
A) $90,000
B) $275,000
C) $185,000
D) $90,004
94) Gerstein 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 total fixed manufacturing overhead cost of $90,000, variable
manufacturing overhead of $3.70 per direct labor-hour, and 50,000 direct labor-hours. The
company recently completed Job M800 which required 150 direct labor-hours.
The predetermined overhead rate is closest to:
A) $1.80 per direct labor-hour
B) $5.50 per direct labor-hour
C) $9.20 per direct labor-hour
D) $3.70 per direct labor-hour