Exam 2: Job-Order Costing: Calculating Unit Production Costs

Bolander Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Recently, Job M825 was completed with the following characteristics: -If the company marks up its unit product costs by 40% then the selling price for a unit in Job M825 is closest to:

Fee The first step is to calculate the estimated total overhead costs in the two departments. Machining Customizing The second step is to combine the estimated manufacturing overhead costs in the two departments ($44,400 + $21,200 = $65,600) to calculate the plantwide predetermined overhead rate as follow: The overhead applied to Job C is calculated as follows: Overhead applied to a particular job = Predetermined overhead rate x Machine-hours incurred by the job = $6.56 per MH x (4,100 MHs + 1,600 MHs) = $6.56 per MH x (5,700 MHs) = $37,392 Job C's manufacturing cost: Reference: CH02-Ref24 Prather Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Recently, Job P513 was completed with the following characteristics: -The total job cost for Job P513 is closest to:

Morataya Corporation has two manufacturing departments--Machining and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: During the most recent month, the company started and completed two jobs--Job B and Job G. There were no beginning inventories. Data concerning those two jobs follow: -Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.That predetermined manufacturing overhead rate is closest to:

Mcewan Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours.The company based its predetermined overhead rate for the current year on 20,000 direct labor-hours,total fixed manufacturing overhead cost of $182,000,and a variable manufacturing overhead rate of $2.50 per direct labor-hour.Job X941,which was for 50 units of a custom product,was recently completed.The job cost sheet for the job contained the following data: Required: Calculate the selling price for Job X941 if the company marks up its unit product costs by 20%.

Dejarnette Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: -The estimated total manufacturing overhead is closest to:

Mahon Corporation has two production departments,Casting and Customizing.The company uses a job-order costing system and computes a predetermined overhead rate in each production department.The Casting Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours.At the beginning of the current year,the company had made the following estimates: During the current month the company started and finished Job T138.The following data were recorded for this job: The amount of overhead applied in the Customizing Department to Job T138 is closest to:

The amount of overhead applied to a particular job equals the actual amount of overhead caused by the job.

A job cost sheet is used to record how much a customer pays for the job once the job is completed.

Sivret Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Recently, Job M598 was completed with the following characteristics: -The total job cost for Job M598 is closest to:

Kubes Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $90,000, variable manufacturing overhead of $3.50 per direct labor-hour, and 30,000 direct labor-hours. The company has provided the following data concerning Job A477 which was recently completed: -The total amount of overhead applied in both departments to Job T288 is closest to:

Amason Corporation has two production departments,Forming and Assembly.The company uses a job-order costing system and computes a predetermined overhead rate in each production department.The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours.At the beginning of the current year,the company had made the following estimates: During the current month the company started and finished Job A950.The following data were recorded for this job: Required: Calculate the selling price for Job A950 if the company marks up its unit product costs by 30% to determine selling prices.

Saxon Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours.The company based its predetermined overhead rate for the current year on 10,000 machine-hours,total fixed manufacturing overhead cost of $91,000,and a variable manufacturing overhead rate of $2.40 per machine-hour.Job K373,which was for 60 units of a custom product,was recently completed.The job cost sheet for the job contained the following data: Required: a.Calculate the estimated total manufacturing overhead for the year. b.Calculate the predetermined overhead rate for the year. c.Calculate the amount of overhead applied to Job K373. d.Calculate the total job cost for Job K373. e.Calculate the unit product cost for Job K373.

Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.The Corporation has provided the following estimated costs for next year: Reamer estimates that 500 direct labor-hours and 1,000 machine-hours will be worked during the year.The predetermined overhead rate per hour will be:

-Kavin Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year.The company has provided the following data for the most recent year. The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to:

Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: During the current month the company started and finished Job A319. The following data were recorded for this job: -If the company marks up its manufacturing costs by 20% then the selling price for Job A319 would be closest to:

Braegelmann Corporation has two production departments,Casting and Assembly.The company uses a job-order costing system and computes a predetermined overhead rate in each production department.The Casting Department's predetermined overhead rate is based on machine-hours and the Assembly Department's predetermined overhead rate is based on direct labor-hours.At the beginning of the current year,the company had made the following estimates: During the current month the company started and finished Job K246.The following data were recorded for this job: Required: a.Calculate the estimated total manufacturing overhead for the Casting Department. b.Calculate the estimated total manufacturing overhead for the Assembly Department. c.Calculate the predetermined overhead rate for the Casting Department. d.Calculate the predetermined overhead rate for the Assembly Department. e.Calculate the amount of overhead applied in the Casting Department to Job K246. f.Calculate the amount of overhead applied in the Assembly Department to Job K246. g.Calculate the total job cost for Job K246. h.Calculate the selling price for Job K246 if the company marks up its unit product costs by 40% to determine selling prices.

Claybrooks Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: -Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.The departmental predetermined overhead rate in the Assembly Department is closest to:

Collini Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: During the current month the company started and finished Job T268. The following data were recorded for this job: -The total job cost for Job T268 is closest to:

Hickingbottom Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: During the current month the company started and finished Job M381. The following data were recorded for this job: -The predetermined overhead rate for the Finishing Department is closest to:

Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Recently, Job P951 was completed with the following characteristics: -The total job cost for Job P951 is closest to: