35. Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead
rate based on direct labor hours to apply overhead to individual jobs. For the current year,
estimated direct labor hours were 114,000 and estimated factory overhead was $695,400. The
following information was for September. Job X was completed during September, while Job Y
was started but not finished.
September 1, inventories:
Materials $9,000
Work-in-process (All Job X) 37,400
Finished goods 80,400
Materials purchases $125,000
Direct materials requisitioned:
Job X $54,500
Job Y 40,000
Direct labor hours:
Job X 5,000
Job Y 4,500
Labor costs incurred:
Direct labor ($6.00 per hour) $57,000
Indirect labor 16,200
Factory supervisory salaries 7,200
Rental costs:
Factory $8,400
Administrative offices 2,200
Total equipment depreciation costs:
Factory $9,000
Administrative offices 1,900
Indirect materials used $14,400
The underapplied or overapplied overhead for September is:
36. Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead
rate based on direct labor hours to apply overhead to individual jobs. For the current year,
estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The
following information is for September. Job X was completed during September, while Job Y was
started but not finished.
September 1, inventories:
Materials $24,000
Work-in-process (All Job X) 53,400
Finished goods 105,600
Materials purchases $157,000
Direct materials requisitioned:
Job X $74,000
Job Y 68,000
Direct labor hours:
Job X 7,000
Job Y 5,500
Labor costs incurred:
Direct labor ($6.00 per hour) $75,000
Indirect labor 24,200
Factory supervisory salaries 11,100
Rental costs:
Factory $9,300
Administrative offices 3,200
Total equipment depreciation costs:
Factory $10,400
Administrative offices 2,800
Indirect materials used $17,800
The total factory overhead applied during September is:
37. Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead
rate based on direct labor hours to apply overhead to individual jobs. For the current year,
estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The
following information is for September. Job X was completed during September, while Job Y was
started but not finished.
September 1, inventories:
Materials $24,000
Work-in-process (All Job X) 53,400
Finished goods 105,600
Materials purchases $157,000
Direct materials requisitioned:
Job X $74,000
Job Y 68,000
Direct labor hours:
Job X 7,000
Job Y 5,500
Labor costs incurred:
Direct labor ($6.00 per hour) $75,000
Indirect labor 24,200
Factory supervisory salaries 11,100
Rental costs:
Factory $9,300
Administrative offices 3,200
Total equipment depreciation costs:
Factory $10,400
Administrative offices 2,800
Indirect materials used $17,800
The underapplied or overapplied overhead for September is:
38. Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead
rate based on direct labor hours to apply overhead to individual jobs. For the current year,
estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The
following information is for September. Job X was completed during September, while Job Y was
started but not finished.
September 1, inventories:
Materials $24,000
Work-in-process (All Job X) 53,400
Finished goods 105,600
Materials purchases $157,000
Direct materials requisitioned:
Job X $74,000
Job Y 68,000
Direct labor hours
Job X 7,000
Job Y 5,500
Labor costs incurred:
Direct labor ($6.00 per hour) $75,000
Indirect labor 24,200
Factory supervisory salaries 11,100
Rental costs:
Factory $9,300
Administrative offices 3,200
Total equipment depreciation costs:
Factory $10,400
Administrative offices 2,800
Indirect materials used $17,800
The total ending work-in-process for September is:
39. Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead
rate based on direct labor hours to apply overhead to individual jobs. For the current year,
estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The
following information is for September. Job X was completed during September, while Job Y was
started but not finished.
September 1, inventories:
Materials $24,000
Work-in-process (All Job X) 53,400
Finished goods 105,600
Materials purchases $157,000
Direct materials requisitioned:
Job X $74,000
Job Y 68,000
Direct labor hours
Job X 7,000
Job Y 5,500
Labor costs incurred:
Direct labor ($6.00 per hour) $75,000
Indirect labor 24,200
Factory supervisory salaries 11,100
Rental costs:
Factory $9,300
Administrative offices 3,200
Total equipment depreciation costs:
Factory $10,400
Administrative offices 2,800
Indirect materials used $17,800
Cost of goods manufactured for September is:
40. ABC Company listed the following data for the current year:
Budgeted factory overhead $1,044,000
Budgeted direct labor hours 69,600
Budgeted machine hours 24,000
Actual factory overhead 1,037,400
Actual labor hours 72,600
Actual machine hours 23,600
Assuming ABC Company applied overhead based on direct labor hours, the company’s
predetermined overhead rate for the year is:
41. ABC Company listed the following data for the current year:
Budgeted factory overhead $1,044,000
Budgeted direct labor hours 69,600
Budgeted machine hours 24,000
Actual factory overhead 1,037,400
Actual labor hours 72,600
Actual machine hours 23,600
Assuming ABC applied overhead based on machine hours, the company’s predetermined
overhead rate for the year is:
42. ABC Company listed the following data for the current year:
Budgeted factory overhead $1,044,000
Budgeted direct labor hours 69,600
Budgeted machine hours 24,000
Actual factory overhead 1,037,400
Actual labor hours 72,600
Actual machine hours 23,600
If overhead is applied based on direct labor hours, the overapplied/underapplied overhead is:
43. ABC Company listed the following data for the current year:
Budgeted factory overhead $1,044,000
Budgeted direct labor hours 69,600
Budgeted machine hours 24,000
Actual factory overhead 1,037,400
Actual labor hours 72,600
Actual machine hours 23,600
If overhead is applied based on machine hours, the overapplied/underapplied overhead is:
44. The journal entry to dispose of overapplied or underapplied overhead, if overhead is
applied based on direct labor hours, would include a credit to:
45. Jackson Inc. listed the following data for 2016:
Budgeted factory overhead $1,271,000
Budgeted direct labor hours 82,000
Budgeted machine hours 41,000
Actual factory overhead 1,201,000
Actual direct labor hours 86,300
Actual machine hours 39,400
Round calculations to 2 significant digits
Assuming Jackson Inc. applied overhead based on direct labor hours, the firm’s predetermined
overhead rate for 2016 is:
46. Jackson Inc. listed the following data for 2016:
Budgeted factory overhead $1,271,000
Budgeted direct labor hours 82,000
Budgeted machine hours 41,000
Actual factory overhead 1,201,000
Actual direct labor hours 86,300
Actual machine hours 39,400
Round calculations to 2 significant digits
Assuming Jackson Inc. applied overhead based on machine hours, the firm’s predetermined
overhead rate for 2016 is:
47. Jackson Inc. listed the following data for 2016:
Budgeted factory overhead $1,271,000
Budgeted direct labor hours 82,000
Budgeted machine hours 41,000
Actual factory overhead 1,201,000
Actual direct labor hours 86,300
Actual machine hours 39,400
Round calculations to 2 significant digits
If overhead is applied based on direct labor hours, overapplied/underapplied overhead is:
48. Jackson Inc. listed the following data for 2016:
Budgeted factory overhead $1,271,000
Budgeted direct labor hours 82,000
Budgeted machine hours 41,000
Actual factory overhead 1,201,000
Actual direct labor hours 86,300
Actual machine hours 39,400
Round calculations to 2 significant digits
If overhead is applied based on machine hours, the overapplied/underapplied overhead is:
49. Sutherland Company listed the following data for 2016:
Budgeted factory overhead $2,100,000
Budgeted direct labor hours 89,000
Budgeted machine hours 51,000
Actual factory overhead 2,201,000
Actual direct labor hours 83,700
Actual machine hours 48,900
Round calculations to two significant digits
Assuming Sutherland applied overhead based on direct labor hours, the company’s
predetermined overhead rate for 2016 is (round to two significant digits):
50. Sutherland Company listed the following data for 2016:
Budgeted factory overhead $2,100,000
Budgeted direct labor hours 89,000
Budgeted machine hours 51,000
Actual factory overhead 2,201,000
Actual direct labor hours 83,700
Actual machine hours 48,900
Round calculations to two significant digits
Assuming Sutherland applied overhead based on machine hours, the company’s predetermined
overhead rate for 2016 is (round to two significant digits):
51. Sutherland Company listed the following data for 2016:
Budgeted factory overhead $2,100,000
Budgeted direct labor hours 89,000
Budgeted machine hours 51,000
Actual factory overhead 2,201,000
Actual direct labor hours 83,700
Actual machine hours 48,900
Round calculations to two significant digits
If overhead is applied based on direct labor hours, the overapplied/underapplied overhead is: