company used the following data at the beginning of the year to calculate predetermined overhead
rates:
Customizing
Total
Estimated total machine-hours (MHs)
5,000
5,000
10,000
Estimated total fixed manufacturing overhead
cost
$
27,500
$
10,500
$
38,000
Estimated variable manufacturing overhead cost
per MH
$
1.70
$
2.60
During the most recent month, the company started and completed two jobs—Job C and Job G.
There were no beginning inventories. Data concerning those two jobs follow:
Job C
Job G
Direct materials
$
10,600
$
6,800
Direct labor cost
$
23,700
$
87,900
Casting machine-hours
3,400
1,600
2,000
3,000
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on
machine-hours. The total manufacturing cost assigned to Job G is closest to:
A) $42,070
B) $27,370
C) $6,800
D) $7,900
Estimated fixed manufacturing overhead
27,500
Estimated variable manufacturing overhead
($1.70 per MH × 5,000 MHs)
8,500
Estimated total manufacturing overhead cost
36,000
138) Sivret 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
$ 624,000
Variable manufacturing overhead per machine-hour
$ 3.10
Recently, Job M598 was completed with the following characteristics:
Number of units in the job
60
Total machine-hours
300
Direct materials
$ 645
Direct labor cost
$ 9,000
The amount of overhead applied to Job M598 is closest to:
A) $930
B) $4,200
C) $2,340
D) $3,270
164
139) Sivret 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
$ 624,000
Variable manufacturing overhead per machine-hour
$ 3.10
Recently, Job M598 was completed with the following characteristics:
Number of units in the job
60
Total machine-hours
300
Direct materials
$ 645
Direct labor cost
$ 9,000
The total job cost for Job M598 is closest to:
A) $12,270
B) $9,645
C) $3,915
D) $12,915
166
140) Sivret 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
$ 624,000
Variable manufacturing overhead per machine-hour
$ 3.10
Recently, Job M598 was completed with the following characteristics:
Number of units in the job
60
Total machine-hours
300
Direct materials
$ 645
Direct labor cost
$ 9,000
The unit product cost for Job M598 is closest to:
A) $65.25
B) $160.75
C) $215.25
D) $43.05
168
141) Sivret 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
$ 624,000
Variable manufacturing overhead per machine-hour
$ 3.10
Recently, Job M598 was completed with the following characteristics:
Number of units in the job
60
Total machine-hours
300
Direct materials
$ 645
Direct labor cost
$ 9,000
If the company marks up its unit product costs by 40% then the selling price for a unit in Job M598
is closest to:
A) $321.35
B) $225.05
C) $86.10
D) $301.35
142) Levron 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 $58,000, variable manufacturing
overhead of $2.00 per machine-hour, and 20,000 machine-hours. The company has provided the
following data concerning Job P978 which was recently completed:
Number of units in the job
20
Total machine-hours
80
Direct materials
$ 500
Direct labor cost
$ 2,640
The predetermined overhead rate is closest to:
A) $2.90 per machine-hour
B) $2.00 per machine-hour
C) $4.90 per machine-hour
D) $6.90 per machine-hour
143) Levron 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 $58,000, variable manufacturing
overhead of $2.00 per machine-hour, and 20,000 machine-hours. The company has provided the
following data concerning Job P978 which was recently completed:
Number of units in the job
20
Total machine-hours
80
Direct materials
$ 500
Direct labor cost
$ 2,640
The amount of overhead applied to Job P978 is closest to:
A) $232
B) $160
C) $392
D) $552
144) Levron 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 $58,000, variable manufacturing
overhead of $2.00 per machine-hour, and 20,000 machine-hours. The company has provided the
following data concerning Job P978 which was recently completed:
Number of units in the job
20
Total machine-hours
80
Direct materials
$ 500
Direct labor cost
$ 2,640
The total job cost for Job P978 is closest to:
A) $3,140
B) $892
C) $3,532
D) $3,032
Direct materials
Direct labor
Manufacturing overhead applied
Total cost of Job P978
173
145) Levron 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 $58,000, variable manufacturing
overhead of $2.00 per machine-hour, and 20,000 machine-hours. The company has provided the
following data concerning Job P978 which was recently completed:
Number of units in the job
20
Total machine-hours
80
Direct materials
$ 500
Direct labor cost
$ 2,640
The unit product cost for Job P978 is closest to:
A) $176.60
B) $157.00
C) $44.60
D) $44.15
175
146) Levron 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 $58,000, variable manufacturing
overhead of $2.00 per machine-hour, and 20,000 machine-hours. The company has provided the
following data concerning Job P978 which was recently completed:
Number of units in the job
20
Total machine-hours
80
Direct materials
$ 500
Direct labor cost
$ 2,640
If the company marks up its unit product costs by 30% then the selling price for a unit in Job P978
is closest to:
A) $249.58
B) $229.58
C) $204.10
D) $52.98
147) Bolander 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
70,000
Total fixed manufacturing overhead cost
$ 294,000
Variable manufacturing overhead per machine-hour
$ 2.30
Recently, Job M825 was completed with the following characteristics:
Number of units in the job
20
Total machine-hours
80
Direct materials
$ 665
Direct labor cost
$ 1,840
The predetermined overhead rate is closest to:
A) $8.80 per machine-hour
B) $6.50 per machine-hour
C) $2.30 per machine-hour
D) $4.20 per machine-hour
148) Bolander 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
70,000
Total fixed manufacturing overhead cost
$ 294,000
Variable manufacturing overhead per machine-hour
$ 2.30
Recently, Job M825 was completed with the following characteristics:
Number of units in the job
20
Total machine-hours
80
Direct materials
$ 665
Direct labor cost
$ 1,840
The amount of overhead applied to Job M825 is closest to:
A) $184
B) $520
C) $704
D) $336
179
149) Bolander 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
70,000
Total fixed manufacturing overhead cost
$ 294,000
Variable manufacturing overhead per machine-hour
$ 2.30
Recently, Job M825 was completed with the following characteristics:
Number of units in the job
20
Total machine-hours
80
Direct materials
$ 665
Direct labor cost
$ 1,840
The total job cost for Job M825 is closest to:
A) $2,360
B) $2,505
C) $1,185
D) $3,025
