150) Heathcote Corporation is a manufacturer that uses job-order costing. The company closes out
any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The
company has supplied the following data for the just completed year:
Estimated total manufacturing overhead at the beginning of
the year
$
546,000
Estimated direct labor-hours at the beginning of the year
42,000
direct
labor-hours
Results of operations:
Actual direct labor-hours
47,000
direct
labor-hours
Manufacturing overhead:
Indirect labor cost
$
152,000
Other manufacturing overhead costs incurred
$
454,000
Cost of goods manufactured
$
1,569,000
Cost of goods sold (unadjusted)
$
1,458,000
The total amount of manufacturing overhead applied to production is:
A) $1,755,000
B) $546,000
C) $606,000
D) $611,000
143
151) Heathcote Corporation is a manufacturer that uses job-order costing. The company closes out
any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The
company has supplied the following data for the just completed year:
Estimated total manufacturing overhead at the beginning of
the year
$
546,000
Estimated direct labor-hours at the beginning of the year
42,000
direct
labor-hours
Results of operations:
Actual direct labor-hours
47,000
direct labor-hours
Manufacturing overhead:
Indirect labor cost
$
152,000
Other manufacturing overhead costs incurred
$
454,000
Cost of goods manufactured
$
1,569,000
Cost of goods sold (unadjusted)
$
1,458,000
Manufacturing overhead is overapplied or underapplied by:
A) $186,000 Underapplied
B) $5,000 Underapplied
C) $186,000 Overapplied
D) $5,000 Overapplied
145
152) Heathcote Corporation is a manufacturer that uses job-order costing. The company closes out
any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The
company has supplied the following data for the just completed year:
Estimated total manufacturing overhead at the beginning of
the year
$
546,000
Estimated direct labor-hours at the beginning of the year
42,000
direct
labor-hours
Results of operations:
Actual direct labor-hours
47,000
direct labor-hours
Manufacturing overhead:
Indirect labor cost
$
152,000
Other manufacturing overhead costs incurred
$
454,000
Cost of goods manufactured
$
1,569,000
Cost of goods sold (unadjusted)
$
1,458,000
The adjusted Cost of Goods Sold for the year is:
A) $1,603,000
B) $1,458,000
C) $1,453,000
D) $1,463,000
153) Echher Corporation uses a job-order costing system and applies overhead to jobs using a
predetermined overhead rate. During the year the company’s Finished Goods inventory account
was debited for $218,000 and credited for $218,500. The ending balance in the Finished Goods
inventory account was $13,000. At the end of the year, manufacturing overhead was overapplied
by $36,700.
The balance in the Finished Goods inventory account at the beginning of the year was:
A) $13,500
B) $36,700
C) $500
D) $13,000
154) Echher Corporation uses a job-order costing system and applies overhead to jobs using a
predetermined overhead rate. During the year the company’s Finished Goods inventory account
was debited for $218,000 and credited for $218,500. The ending balance in the Finished Goods
inventory account was $13,000. At the end of the year, manufacturing overhead was overapplied
by $36,700.
If the applied manufacturing overhead was $223,900, the actual manufacturing overhead cost for
the year was:
A) $200,700
B) $260,600
C) $200,200
D) $187,200
155) Parker Corporation has a job-order costing system and uses a predetermined overhead rate
based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the year,
manufacturing overhead and direct labor-hours for the year were estimated at $50,000 and 20,000
hours, respectively. In June, Job #461 was completed. Materials costs on the job totaled $4,000
and labor costs totaled $1,500 at $5 per hour. At the end of the year it was determined that the
company worked 24,000 direct labor-hours for the year and incurred $54,000 in actual
manufacturing overhead costs.
If Job #461 contained 100 units, the unit product cost on the completed job cost sheet would be:
A) $61.75
B) $62.50
C) $63.10
D) $55.00
156) Parker Corporation has a job-order costing system and uses a predetermined overhead rate
based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the year,
manufacturing overhead and direct labor-hours for the year were estimated at $50,000 and 20,000
hours, respectively. In June, Job #461 was completed. Materials costs on the job totaled $4,000
and labor costs totaled $1,500 at $5 per hour. At the end of the year it was determined that the
company worked 24,000 direct labor-hours for the year and incurred $54,000 in actual
manufacturing overhead costs.
The manufacturing overhead for the year was:
A) $6,000 overapplied
B) $10,000 overapplied
C) $10,000 underapplied
D) $4,000 underapplied
157) Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours,
has provided the following data for its most recent year of operations.
Estimated manufacturing overhead
$
157,050
Estimated machine-hours
4,500
Actual manufacturing overhead
$
156,000
Actual machine-hours
4,580
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of
the year for the purpose of computing the company’s predetermined overhead rate for the year.
The predetermined overhead rate is closest to:
A) $34.06
B) $34.90
C) $34.67
D) $35.52
158) Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours,
has provided the following data for its most recent year of operations.
Estimated manufacturing overhead
$
157,050
Estimated machine-hours
4,500
Actual manufacturing overhead
$
156,000
Actual machine-hours
4,580
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of
the year for the purpose of computing the company’s predetermined overhead rate for the year.
The applied manufacturing overhead for the year is closest to:
A) $162,682
B) $155,995
C) $158,789
D) $159,842
159) Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours,
has provided the following data for its most recent year of operations.
Estimated manufacturing overhead
$
157,050
Estimated machine-hours
4,500
Actual manufacturing overhead
$
156,000
Actual machine-hours
4,580
The estimates of the manufacturing overhead and of machine-hours were made at the beginning of
the year for the purpose of computing the company’s predetermined overhead rate for the year.
The overhead for the year was:
A) $2,792 underapplied
B) $3,842 overapplied
C) $2,792 overapplied
D) $3,842 underapplied
Actual manufacturing overhead incurred
156,000
Manufacturing overhead applied to Work in Process
159,842
Underapplied (overapplied) manufacturing overhead
)
160) Caple Corporation applies manufacturing overhead on the basis of machine-hours. At the
beginning of the most recent year, the company based its predetermined overhead rate on total
estimated overhead of $16,660. Actual manufacturing overhead for the year amounted to $25,000
and actual machine-hours were 1,460. The company’s predetermined overhead rate for the year
was $11.90 per machine-hour.
The predetermined overhead rate was based on how many estimated machine-hours?
A) 1,400
B) 2,101
C) 2,742
D) 1,460
161) Caple Corporation applies manufacturing overhead on the basis of machine-hours. At the
beginning of the most recent year, the company based its predetermined overhead rate on total
estimated overhead of $16,660. Actual manufacturing overhead for the year amounted to $25,000
and actual machine-hours were 1,460. The company's predetermined overhead rate for the
year was $11.90 per machine-hour.
The applied manufacturing overhead for the year was closest to:
A) $26,071
B) $18,119
C) $17,374
D) $16,660
162) Caple Corporation applies manufacturing overhead on the basis of machine-hours. At the
beginning of the most recent year, the company based its predetermined overhead rate on total
estimated overhead of $16,660. Actual manufacturing overhead for the year amounted to $25,000
and actual machine-hours were 1,460. The company's predetermined overhead rate for the
year was $11.90 per machine-hour.
The overhead for the year was:
A) $714 overapplied
B) $7,626 underapplied
C) $714 underapplied
D) $7,626 overapplied
163) Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the
beginning of the most recent year, the company based its predetermined overhead rate on total
estimated overhead of $239,700 and 4,700 estimated direct labor-hours. Actual manufacturing
overhead for the year amounted to $242,000 and actual direct labor-hours were 4,600.
The predetermined overhead rate for the year was closest to:
A) $52.61
B) $49.91
C) $51.00
D) $51.49
164) Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the
beginning of the most recent year, the company based its predetermined overhead rate on total
estimated overhead of $239,700 and 4,700 estimated direct labor-hours. Actual manufacturing
overhead for the year amounted to $242,000 and actual direct labor-hours were 4,600.
The applied manufacturing overhead for the year was closest to:
A) $229,586
B) $234,600
C) $242,006
D) $236,854
165) Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the
beginning of the most recent year, the company based its predetermined overhead rate on total
estimated overhead of $239,700 and 4,700 estimated direct labor-hours. Actual manufacturing
overhead for the year amounted to $242,000 and actual direct labor-hours were 4,600.
The overhead for the year was:
A) $5,100 underapplied
B) $7,400 underapplied
C) $5,100 overapplied
D) $7,400 overapplied
160
166)
Raw Materials
Bal
7,000
(2)
24,000
(1)
19,000
Work In Process
Bal
11,000
(7)
?
(2)
15,000
(4)
18,000
(6)
31,000
Finished Goods
Bal
18,000
(7)
62,000
15,000
Manufacturing Overhead
(2)
9,000
(6)
31,000
(3)
16,000
(4)
8,000
(5)
5,000
Accumulated Depreciation—Factory
Bal
82,000
(3)
16,000
Sales Salaries Expense
(4)
11,000