53.
The following information has been gathered for the Harrell Manufacturing Company for
its fiscal year ending December 31:
Actual manufacturing overhead costs
$212,500
Actual direct labor hours
54,900
Actual direct labor costs
$445,000
Estimated manufacturing overhead
costs
$210,000
Estimated direct labor
$434,000
Estimated direct labor hours
56,000
What is the predetermined manufacturing overhead rate, assuming direct labor cost is
used as the activity base?
54.
The predetermined manufacturing overhead rate for 2016 was $4.00 per direct labor hour;
employees were paid $5.00 per hour. If the estimated direct labor cost was $75,000, what
was the estimated manufacturing overhead?
55.
The Bondi Company uses a predetermined overhead rate in applying overhead to
production orders on a direct labor cost basis in Department A and on a machine hours
basis in Department B. At the beginning of the year, the company made the following
estimates:
Dept. A
Dept. B
Direct labor cost
$60,000
$40,000
Factory overhead
$90,000
$45,000
Direct labor hours
6,000
9,000
Machine hours
2,000
15,000
What predetermined overhead rate would be used in Department A and Department B,
respectively?
56.
Fortify, Inc. uses a predetermined manufacturing overhead rate based on direct labor
hours to apply its indirect product costs to jobs. The following information has been
collected for the previous year:
Direct materials
$150,000
Direct labor
200,000
Sales commissions
100,000
Indirect labor
50,000
Rent on office equipment
25,000
Depreciation – factory building
75,000
Utilities – factory
125,000
Fortify used 25,000 direct labor hours and 50,000 machine hours during the previous year.
What is the predetermined overhead rate per direct labor hour?
57.
Rapid Enterprises applies manufacturing overhead to its cost objects on the basis of 75%
of direct material cost. If Job 17X had $72,000 of manufacturing overhead applied to it
during May, the direct materials assigned to Job 17X was:
58.
The Titan Enterprises Company manufactures cleaning spray for public schools. During
2016, the company spent $600,000 on prime costs and $800,000 on conversion costs.
Overhead is applied at a rate of 150% of direct labor costs. How much did the company
allocate (apply) for manufacturing overhead during 2016?
59.
Flare Co. manufactures textiles. Among Flare’s 2016 manufacturing costs were the
following salaries and wages:
Loom operators
$120,000
Factory foremen
45,000
Machine mechanics
30,000
What was the amount of Flare’s 2016 direct labor? (CPA adapted)
60.
Flare Co. manufactures textiles. Among Flare’s 2016 manufacturing costs were the
following salaries and wages:
Loom operators
$120,000
Factory foremen
45,000
Machine mechanics
30,000
What was the amount of Flare’s 2016 indirect labor? (CPA adapted)
61.
The following direct labor information pertains to the manufacture of product Scour:
Time required to make one unit
2 direct labor
hours
Number of direct workers
50
Number of productive hours per
week, per worker
40
Weekly wages per worker
$500
Workers’ benefits treated as
direct labor costs
20% of wages
62.
The following direct labor information pertains to the manufacture of product Glaze:
Time required to make one unit
3 direct labor
hours
Number of direct workers
25
Number of productive hours per
week, per worker
36
Weekly wages per worker
$700
Workers’ benefits treated as
direct labor costs
30% of wages
63.
The cost per unit of the allocation base used to charge overhead to products is the:
64.
Arbor, Inc. has estimated overhead to be $300,000 and labor hours to be 30,000. Actual
overhead turned out to be $310,000 when 30,500 labor hours were worked. The
predetermined overhead rate would be:
65.
Arbor, Inc. had overhead of $310,000 during the year when $260,000 in labor costs were
incurred. Estimates at the start of the year for overhead and labor costs were $300,000 for
overhead and $250,000 for labor costs. The predetermined overhead rate would be:
66.
The following information has been gathered for Catalyst Legal Services for its fiscal year
ending December 31:
Actual office overhead costs
$1,275,500
Actual billable labor hours
44,600
Actual billable labor costs
$3,960,000
Estimated office overhead costs
$1,080,000
Estimated billable labor hours
48,000
Estimated billable labor costs
$4,320,000
What is the predetermined office overhead rate per billable labor hour?
67.
The following information has been gathered for Catalyst Legal Services for its fiscal year
ending December 31:
Actual office overhead costs
$1,275,500
Actual billable labor hours
44,600
Actual billable labor costs
$3,960,000
Estimated office overhead costs
$1,080,000
Estimated billable labor hours
48,000
Estimated billable labor costs
$4,320,000
What is the predetermined office overhead rate per billable labor dollar?
68.
The following information has been gathered for Foxmoor Industries for its fiscal year
ending December 31:
Estimated factory overhead costs
$1,500,000
Actual factory overhead costs
$1,776,400
Estimated labor hours
48,000
Actual labor hours
51,700
Estimated labor costs
$756,000
Actual labor costs
$840,125
Estimated machine hours
96,000
Actual machine hours
102,600
What is the predetermined factory overhead rate per labor dollar?
69.
The following information has been gathered for Foxmoor Industries for its fiscal year
ending December 31:
Estimated factory overhead costs
$1,500,000
Actual factory overhead costs
$1,776,400
Estimated labor hours
48,000
Actual labor hours
51,700
Estimated labor costs
$756,000
Actual labor costs
$840,125
Estimated machine hours
96,000
Actual machine hours
102,600
What is the predetermined factory overhead rate per labor hour?
70.
The following information has been gathered for Foxmoor Industries for its fiscal year
ending December 31:
Estimated factory overhead costs
$1,500,000
Actual factory overhead costs
$1,776,400
Estimated labor hours
48,000
Actual labor hours
51,700
Estimated labor costs
$756,000
Actual labor costs
$840,125
Estimated machine hours
96,000
Actual machine hours
102,600
What is the predetermined factory overhead rate per machine hour?
71.
Savor Flavor Supplies applies manufacturing overhead to its products on the basis of 50%
of direct material cost. If a job had $35,000 of manufacturing overhead applied to it during
May, the direct materials assigned to the job was:
72.
73.
The predetermined manufacturing overhead rate for the year was $14.00 per direct labor
hour; employees were paid $17.50 per hour. If the estimated direct labor cost was
$315,000, what was the estimated manufacturing overhead?
74.
The predetermined manufacturing overhead rate for the year was 140% of direct labor
cost; employees were paid $17.50 per hour. If the estimated direct labor hours were
15,000, what was the estimated manufacturing overhead?