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34. The Collins Company uses predetermined overhead rates to apply manufacturing
overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and on
machine-hours in Dept. B. At the beginning of the year, the company made the following
estimates:
What predetermined overhead rates would be used in Dept. A and Dept. B, respectively?
35. Hayne Corporation bases its predetermined overhead rate on the estimated machine-
hours for the upcoming year. Data for the most recently completed year appear below:
The predetermined overhead rate for the recently completed year was closest to:
36. Kelsh Company uses a predetermined overhead rate based on machine-hours to apply
manufacturing overhead to jobs. The company has provided the following estimated costs for
next year:
Kelsh estimates that 5,000 direct labor-hours and 10,000 machine-hours will be worked during
the year. The predetermined overhead rate per hour will be:
37. Simoneaux Corporation bases its predetermined overhead rate on the estimated
machine-hours for the upcoming year. At the beginning of the most recently completed year, the
company estimated the machine-hours for the upcoming year at 22,000 machine-hours. The
estimated variable manufacturing overhead was $8.65 per machine-hour and the estimated total
fixed manufacturing overhead was $609,400. The predetermined overhead rate for the recently
completed year was closest to:
38. Compton Company uses a predetermined overhead rate in applying overhead to
production orders on a labor cost basis in Department A and on a machine-hours basis in
Department B. At the beginning of the most recently completed year, the company made the
following estimates:
What predetermined overhead rate would be used in Department A and Department B,
respectively?
39. Kaiser Corporation bases its predetermined overhead rate on the estimated machine-
hours for the upcoming year. Data for the upcoming year appear below:
The predetermined overhead rate for the recently completed year was closest to:
40. Job 731 was recently completed. The following data have been recorded on its job cost
sheet:
The company applies manufacturing overhead on the basis of machine-hours. The predetermined
overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost
sheet for Job 731 would be:
41. The following data have been recorded for recently completed Job 674 on its job cost
sheet. Direct materials cost was $2,039. A total of 32 direct labor-hours and 175 machine-hours
were worked on the job. The direct labor wage rate is $14 per labor-hour. The company applies
manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $15
per machine-hour. The total cost for the job on its job cost sheet would be:
42. Dowan Company uses a predetermined overhead rate based on direct labor-hours to
apply manufacturing overhead to jobs. Last year Dowan Company incurred $156,600 in actual
manufacturing overhead cost. Overhead was underapplied by $12,600 for the year. If the
predetermined overhead rate is $6.00 per direct labor-hour, how many hours did the company
work during the year?
43. Pinnini Co. uses a predetermined overhead rate based on direct labor-hours to apply
manufacturing overhead to jobs. Last year, Pinnini Company incurred $225,000 in actual
manufacturing overhead cost. Overhead was overapplied $14,500 for the year. If the
predetermined overhead rate was $5.00 per direct labor-hour, how many hours did the company
work during the year?
44. Galbraith Company applies overhead cost to jobs on the basis of 70% of direct labor cost.
If Job 201 shows $28,000 of manufacturing overhead applied, the direct labor cost on the job
was:
45. The Donaldson Company uses a job-order costing system. The following data were
recorded for July:
Overhead is applied to jobs at the rate of 80% of direct materials cost. Jobs 475, 477, and 478
were completed during July and transferred to finished goods. Jobs 475 and 478 have been
delivered to the customer. Donaldson's Work in Process inventory balance on July 31 was:
46. Heiny Inc. uses a job-order costing system in which any underapplied or overapplied
overhead is closed to cost of goods sold at the end of the month. In March, the company
completed job G59N that consisted of 21,000 units of one of the company's standard products.
No other jobs were in process during the month. The job cost sheet for job G59N shows that the
job's total cost was $940,800. During the month, the actual manufacturing overhead cost incurred
was $269,640 and the manufacturing overhead cost applied was $249,900. And during the month,
6,000 completed units from job G59N were sold. No other products were sold during the month.
The unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment
for any underapplied or overapplied overhead) for March is closest to:
47. Pacey Inc. uses a job-order costing system in which any underapplied or overapplied
overhead is closed to cost of goods sold at the end of the month. In April, the company completed
job X69V that consisted of 11,000 units of one of the company's standard products. No other jobs
were in process during the month. The job cost sheet for job X69V shows the following costs:
During the month, the actual manufacturing overhead cost incurred was $127,270 and 10,000
completed units from job X69V were sold. No other products were sold during the month. The
unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any
underapplied or overapplied overhead) for April is closest to:
48. Araiza Inc. uses a job-order costing system in which any underapplied or overapplied
overhead is closed out to cost of goods sold at the end of the month. In May the company
completed job Y42V that consisted of 14,000 units of one of the company's standard products.
No other jobs were in process during the month. The job cost sheet for job Y42V shows the
following costs:
During the month, the actual manufacturing overhead cost incurred was $255,220 and 1,000
completed units from job Y42V were sold. No other products were sold.
The cost of goods sold that would appear on the income statement for May is closest to:
49. Elwood Inc. uses a job-order costing system in which any underapplied or overapplied
overhead is closed out to cost of goods sold at the end of the month. In February the company
completed job D68R that consisted of 16,000 units of one of the company's standard products.
No other jobs were in process during the month. The job cost sheet for job D68R shows that the
total cost for the job was $916,800. During the month, the actual manufacturing overhead cost
incurred was $224,480 and the manufacturing overhead cost applied to job D68R was $243,200.
And during the month, 10,000 completed units from job D68R were sold. No other products were
sold. The cost of goods sold that would appear on the income statement for February is closest
to:
50. Burghardt Inc. uses a job-order costing system in which any underapplied or overapplied
overhead is closed out to cost of goods sold at the end of the month. The company's cost of
goods manufactured for January was $249,000 and its beginning and ending inventories were:
During the month, the manufacturing overhead cost incurred was $79,000 and the manufacturing
overhead cost applied was $80,000.
The cost of goods sold that appears on the income statement for January and that has been
adjusted for any underapplied or overapplied overhead is closest to:
51. Desrevisseau Inc., a manufacturing company, has provided the following data for the
month of August. The balance in the Work in Process inventory account was $10,000 at the
beginning of the month and $22,000 at the end of the month. During the month, the company
incurred direct materials cost of $63,000 and direct labor cost of $39,000. The actual
manufacturing overhead cost incurred was $40,000. The manufacturing overhead cost applied to
jobs was $43,000. The cost of goods manufactured for August was:
52. Gest Inc. has provided the following data for the month of November. The balance in the
Finished Goods inventory account at the beginning of the month was $49,000 and at the end of
the month was $45,000. The cost of goods manufactured for the month was $226,000. The actual
manufacturing overhead cost incurred was $74,000 and the manufacturing overhead cost applied
to jobs was $70,000. The adjusted cost of goods sold that would appear on the income statement
for November is:
