Chapter 03 – Job-Order Costing
38. Capalbo Corporation bases its predetermined overhead rate on the estimated labor-hours
for the upcoming year. At the beginning of the most recently completed year, the company
estimated the labor-hours for the upcoming year at 52,000 labor-hours. The estimated variable
manufacturing overhead was $2.78 per labor-hour and the estimated total fixed manufacturing
overhead was $1,192,360. The actual labor-hours for the year turned out to be 52,600 labor-
hours. The predetermined overhead rate for the recently completed year was closest to:
Chapter 03 – Job-Order Costing
39. 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?
Chapter 03 – Job-Order Costing
40. 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:
Chapter 03 – Job-Order Costing
41. 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
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?
Chapter 03 – Job-Order Costing
42. 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:
Chapter 03 – Job-Order Costing
43. 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:
Chapter 03 – Job-Order Costing
44. 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:
Chapter 03 – Job-Order Costing
45. 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:
Chapter 03 – Job-Order Costing
46. 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:
Chapter 03 – Job-Order Costing
47. The operations of the Kerry Company resulted in underapplied overhead of $5,000. The
entry to close out this balance to Cost of Goods Sold and the effect of the underapplied
overhead on Cost of Goods Sold would be:
Chapter 03 – Job-Order Costing
48. Reichelderfer Corporation has provided data concerning the company’s Manufacturing
Overhead account for the month of August. Prior to the closing of the overapplied or
underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing
Overhead account was $50,000 and the total of the credits to the account was $72,000. Which
of the following statements is true?
Chapter 03 – Job-Order Costing
49. Hults Corporation has provided data concerning the company’s Manufacturing Overhead
account for the month of November. Prior to the closing of the overapplied or underapplied
balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account
was $75,000 and the total of the credits to the account was $57,000. Which of the following
statements is true?
Chapter 03 – Job-Order Costing
50. Vandagriff Corporation has provided data concerning the company’s Manufacturing
Overhead account for the month of June. Prior to the closing of the overapplied or
underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing
Overhead account was $77,000 and the total of the credits to the account was $64,000. Which
of the following statements is true?
51. During October, Crusan Corporation incurred $62,000 of direct labor costs and $4,000 of
indirect labor costs. The journal entry to record the accrual of these wages would include a:
Chapter 03 – Job-Order Costing
52. During December at Ingrim Corporation, $74,000 of raw materials were requisitioned
from the storeroom for use in production. These raw materials included both direct and
indirect materials. The indirect materials totaled $6,000. The journal entry to record the
requisition from the storeroom would include a:
53. Stickles Corporation incurred $79,000 of actual Manufacturing Overhead costs during
August. During the same period, the Manufacturing Overhead applied to Work in Process was
$75,000. The journal entry to record the incurrence of the actual Manufacturing Overhead
costs would include a:
Chapter 03 – Job-Order Costing
54. Valles Corporation had $22,000 of raw materials on hand on February 1. During the
month, the company purchased an additional $75,000 of raw materials. The journal entry to
record the purchase of raw materials would include a:
55. Wedd Corporation had $35,000 of raw materials on hand on May 1. During the month, the
company purchased an additional $68,000 of raw materials. During May, $92,000 of raw
materials were requisitioned from the storeroom for use in production. These raw materials
included both direct and indirect materials. The indirect materials totaled $5,000. The debits
to the Work in Process account as a consequence of the raw materials transactions in May
total:
Chapter 03 – Job-Order Costing
56. During February, Degan Inc. transferred $60,000 from Work in Process to Finished Goods
and recorded a Cost of Goods Sold of $65,000. The journal entries to record these transactions
would include a:
57. Kirson Corporation incurred $89,000 of actual Manufacturing Overhead costs during
December. During the same period, the Manufacturing Overhead applied to Work in Process
was $92,000. The journal entry to record the application of Manufacturing Overhead to Work
in Process would include a:
Chapter 03 – Job-Order Costing
58. At the beginning of August, Hogancamp Corporation had $26,000 of raw materials on
hand. During the month, the company purchased an additional $73,000 of raw materials.
During August, $77,000 of raw materials were requisitioned from the storeroom for use in
production. The credits to the Raw Materials account for the month of August total:
59. During July at Tiner Corporation, $74,000 of raw materials were requisitioned from the
storeroom for use in production. These raw materials included both direct and indirect
materials. The indirect materials totaled $7,000. The journal entry to record this requisition
would include a debit to Manufacturing Overhead of:
Chapter 03 – Job-Order Costing
60. On February 1, Caddell Corporation had $28,000 of raw materials on hand. During the
month, the company purchased an additional $70,000 of raw materials. During February,
$81,000 of raw materials were requisitioned from the storeroom for use in production. The
debits to the Raw Materials account for the month of February total:
61. In May, Hervey Inc. incurred $60,000 of direct labor costs and $3,000 of indirect labor
costs. The journal entry to record the accrual of these wages would include a:
Chapter 03 – Job-Order Costing
62. 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:
Chapter 03 – Job-Order Costing
63. 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. The Manufacturing Overhead account showed that 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?