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
Estimated fixed manufacturing overhead
$
10,200
Estimated variable manufacturing overhead ($1.20 per
MH × 2,000 MHs)
Estimated total manufacturing overhead cost (a)
$
12,600
Estimated total machine-hours (b)
2,000
MHs
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
$
137,000
$
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
Estimated fixed manufacturing overhead
$
5,700
Estimated variable manufacturing overhead ($1.10 per
MH × 1,000 MHs)
Estimated total manufacturing overhead cost (a)
$
7,000
Estimated total machine-hours (b)
1,000
MHs
Departmental predetermined overhead rate (a) ÷ (b)
$
7.00
per
MH
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
Estimated fixed manufacturing overhead
$
4,600
Estimated variable manufacturing overhead ($2.50 per
MH × 2,000 MHs)
Estimated total manufacturing overhead cost (a)
$
9,600
Estimated total machine-hours (b)
2,000
MHs
Departmental predetermined overhead rate (a) ÷ (b)
$
4.80
per
MH