Deck 19: Job Order Costing

Question 1

The cost of indirect materials is transferred out of the Manufacturing Overhead account and accumulated in the Raw Materials Inventory account.

Answer 1

False

Question 2

Which of the following would use a process costing system rather than a job order costing system?

A) a health-care provider
B) a music production studio
C) a paint manufacturer
D) a home remodeling contractor

Answer 2

C

Question 3

A job order costing system is used by companies that manufacture batches of unique products or provide specialized services.

Answer 3

True

Question 4

Which of the following is the correct order of the four steps of tracking product costs?

A) Assign → Accumulate → Allocate → Adjust
B) Accumulate → Assign → Allocate → Adjust
C) Adjust → Allocate → Accumulate → Assign
D) Allocate → Adjust → Accumulate → Assign

Question 5

Which of the following companies is most likely to use job order costing?

A) a gold refinery
B) a law firm
C) a surfboard manufacturer
D) a soft drink company

Question 6

Which of the following statements is true?

A) A process costing system would be used by manufacturers of custom-made perfumes.
B) A job order costing system would be used by manufacturers of baking utensils.
C) A construction company would likely use a process costing system.
D) An accounting firm would likely use a job order costing system.

Question 7

When direct materials are received on the production floor, they are recorded on the job cost record.

Question 8

Which of the following is a reason why a job order costing system is appropriate for a custom furniture manufacturer?

A) The cost incurred for each job will differ as per the order specifications.
B) The direct costs incurred for each job are the same, only indirect costs vary.
C) The raw materials used have already been accounted for using process costing.
D) The products are sold to different customers.

Question 9

Accounting firms, building contractors, and healthcare providers use process costing.

Question 10

The journal entry to record direct labor costs actually incurred involves a debit to the:

A) Work-in-Process Inventory account.
B) Wages Payable account.
C) Manufacturing Overhead account.
D) Raw Materials Inventory account.

Question 11

Cost accounting systems are used:

A) to accumulate product cost information.
B) to accumulate and assign period costs to products.
C) by manufacturing companies, not service companies.
D) by stockholders for decision-making purposes.

Question 12

Which of the following accounts would be debited in the journal entry to record the requisition of direct materials?

A) Cost of Goods Sold
B) Work-in-Process Inventory
C) Finished Goods Inventory
D) Raw Materials Inventory

Question 13

The direct labor costs are assigned to individual jobs, and the total direct labor amount is recorded with a debit to Work-in-Process Inventory.

Question 14

The entry to record the purchase of direct materials on account would include a:

A) debit to the Raw Materials Inventory account.
B) debit to the Work-in-Process Inventory account.
C) credit to the Work-in-Process Inventory account.
D) credit to the Raw Materials Inventory account.

Question 15

Work-in-Process Inventory is debited when indirect labor costs are incurred in a job order costing system.

Question 16

Which of the following is true due to the advent of ERP systems?

A) As ERP systems are software based, they have given way to a more service-based economy.
B) As ERP systems track costs more efficiently, the benefit from the cost information outweighs the cost of obtaining the information.
C) As ERP systems track costs more efficiently, large quantities of similar products can be produced at lower costs.
D) As ERP systems have the ability to trace all production costs to individual units, all product costs can now be classified as either direct materials or direct labor.

Question 17

A process costing system is used when a company produces identical units through a series of production steps.

Question 18

When raw materials are requisitioned for a job, the Raw Materials Inventory account is debited.

Question 19

Which of the following businesses is most likely to use a process costing system?

A) a baker producing cakes to order
B) a legal service provider
C) an audit service provider
D) a candy manufacturer

Question 20

Manufacturing Overhead is a temporary account used to accumulate indirect production costs.

Question 21

In a manufacturing operation, depreciation of plant equipment should be debited to the Depreciation Expense account.

Question 22

The accounts of Delphinia Dreams Inc. showed the following balances at the beginning of October: $$\begin{array} { | l | r | } \hline \text { Account } & \text { Debit } \\\hline \text { Raw Materials Inventory } & \$ 30,000 \\\hline \text { Work-in-Process Inventory } & 40,000 \\\hline \text { Finished Goods Inventory } & 50,000 \\\hline \text { Manufacturing Overhead } & 20,000 \\\hline\end{array}$$ During the month, direct materials amounting to $20,000 and indirect materials amounting to $5,000 was issued to production. What is the ending balance in the Work-in-Process Inventory account for the month of October?

A) $40,000
B) $60,000
C) $20,000
D) $25,000

Question 23

Pandora Manufacturing purchased $95,000 of raw materials on account and $5,000 raw materials for cash. The materials will be used to produce furniture. Provide the journal entry for the purchase of materials.

Question 24

The journal entry to issue indirect materials to production should include a debit to the:

A) Finished Goods Inventory account.
B) Raw Materials Inventory account.
C) Manufacturing Overhead account.
D) Work-in-Process Inventory account.

Question 25

The journal entry to issue $500 of direct materials and $30 of indirect materials to production involves debit(s) to the:

A) Work-in-Process Inventory account for $500 and Finished Goods Inventory account for $30.
B) Manufacturing Overhead account for $530.
C) Work-in-Process Inventory account for $500 and Manufacturing Overhead account for $30.
D) Work-in-Process Inventory account for $530.

Question 26

The journal entry to record indirect labor costs incurred involves a debit to the:

A) Manufacturing Overhead account.
B) Wages Payable account.
C) Finished Goods Inventory account.
D) Work-in-Process Inventory account.

Question 27

The journal entry to record $1,500 of direct labor and $200 of indirect labor incurred will include debit(s) to the:

A) Manufacturing Overhead account for $1,700.
B) Work-in-Process Inventory account for $1,500 and Finished Goods Inventory account for $200.
C) Finished Goods Inventory account for $1,700.
D) Work-in-Process Inventory account for $1,500 and Manufacturing Overhead account for $200.

Question 28

Broxsie Fabrication Company issued $60,000 of direct materials and $15,500 of indirect materials to production. Prepare the journal entry to record the transaction.

Question 29

Manufacturing overhead costs are allocated to the Work-in-Process Inventory account by a debit to the Manufacturing Overhead account.

Question 30

Actual manufacturing overhead costs are credited to the Manufacturing Overhead account.

Question 31

On June 1, 2014, Dalton Productions had beginning balances as shown in the T-accounts below. During June, the following transactions took place:
June 2: Issued $2,400 of direct materials and $200 of indirect materials to production
June 13: Paid $7,500 of direct factory labor cost and $14,100 of indirect factory labor cost
Following these transactions, what was the balance in the Manufacturing Overhead account?

A) $50,900
B) $55,300
C) $44,200
D) $65,200

Question 32

Adelphia Manufacturing issued $80,000 of direct materials and $10,000 of indirect materials for production. Which of the following journal entries would correctly record the transaction?

A) $$\begin{array} { | c | r | r | } \hline \text { Raw Materials Inventory } & 90,000 & \\\hline \text { Finished Goods Inventory } & & 80,000 \\\hline \text { Work-in-Process Inventory (direct materials) } & & 10,000 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Work-in-Process Inventory (direct and indirect materials) } & 90,000 & \\\hline \text { Raw Materials Inventory } & & 90,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Work-in-Process Inventory (direct materials) } & 80,000 & \\\hline \text { Manufacturing Overhead (indirect materials) } & 10,000 & \\\hline \text { Raw Materials Inventory } & & 90,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Manufacturing Overhead (direct and indirect materials) } & 90,000 & \\\hline \text { Raw Materials Inventory } & & 90,000 \\\hline\end{array}$$

Question 33

On June 1, 2014, Dalton Productions had beginning balances as shown in the T-accounts below. During June, the following transactions took place:
June 2: Issued $2,400 of direct materials and $200 of indirect materials to production
Following this transaction, what was the balance in the Manufacturing Overhead account?

A) $43,600
B) $43,400
C) $41,200
D) $41,000

Question 34

Specialty Wood Products Company had the following manufacturing labor costs last month:
Provide the journal entry to record the labor costs incurred, which will be paid at a later date.

Question 35

Alexandra's Designs, a fashion boutique, incurred the following in the month of September: $$\begin{array} { | l | r | } \hline \text { Salaries paid to designers } & \$ 140,000 \\\hline \text { Wages paid to tailors } & 30,000 \\\hline \text { Indirect wages } & 10,000 \\\hline\end{array}$$ What is the journal entry to record the total labor charges incurred during September?

A) $$\begin{array} { | l | r | r | } \hline \text { Work-in-Process Inventory (direct labor) } & 170,000 & \\\hline \text { Manufacturing Overhead (indirect labor) } & 10,000 & \\\hline \text { Wages payable } & & 180,000 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Work-in-Process Inventory (direct labor) } & 180,000 & \\\hline \text { Wages Payable } & & 180,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Wages Payable } & 180,000 & \\\hline \text { Finished Goods Inventory } & & 150,000 \\\hline \text { Work-in-Process Inventory (direct labor) } & & 30,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Manufacturing Overhead (indirect labor) } & 180,000 & \\\hline \text { Wages Payable } & & 180,000 \\\hline\end{array}$$

Question 36

Manufacturing overhead is allocated by debiting the Finished Goods Inventory account.

Question 37

Uniq Works purchased raw materials amounting to $125,000 on account and $15,000 for cash. The materials will be used to manufacture upholstery for furniture manufacturers on a contract basis. Which of the following journal entries correctly records this transaction?

A) $$\begin{array} { | l | r | r | } \hline \text { Accounts Payable } & 125,000 & \\\hline \text { Cash } & 15,000 & \\\hline \text { Raw Materials Inventory } & & 140,000 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Finished Goods Inventory } & 140,000 & \\\hline \text { Accounts Payable } & & 140,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Work-in-Process Inventory } & 140,000 & \\\hline \text { Accounts Payable } & & 140,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Raw Materials Inventory } & 140,000 & \\\hline \text { Cash } & & 15,000 \\\hline \text { Accounts Payable } & & 125,000 \\\hline\end{array}$$

Question 38

Manufacturing Overhead is a temporary account used to ________ indirect production costs during the accounting period.

A) allocate
B) assign
C) accumulate
D) approximate

Question 39

The accounts of Melissa Manufacturing showed the following balances at the beginning of December: $$\begin{array} { | l | r | } \hline \text { Account } & \text { Debit } \\\hline \text { Raw Materials Inventory } & \$ 50,000 \\\hline \text { Work-in-Process Inventory } & 80,000 \\\hline \text { Finished Goods Inventory } & 30,000 \\\hline \text { Manufacturing Overhead } & 15,000 \\\hline\end{array}$$ The following transactions took place during the month:
December 2: Issued direct materials $25,000 and indirect materials $4,000 to production.
December 15: Paid $6,000 and $3,000 toward factory's direct labor cost and indirect labor cost, respectively.
What should be the balance in the Work-in-Process Inventory account at the end of December?

A) $111,000
B) $86,000
C) $105,000
D) $81,000

Question 40

The amount of taxes and insurance incurred and paid for the plant of a manufacturing company should be debited to the Manufacturing Overhead account.

Question 41

Aaron Company estimates direct labor costs and manufacturing overhead costs for the coming year to be $800,000 and $500,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 16,000 hours and 10,000 hours, respectively. What is the predetermined overhead allocation rate?

A) $80.00 per machine hour
B) $31.25 per labor hour
C) $81.25 per labor hour
D) $50.00 per machine hour

Question 42

Which of the following will be debited to the Manufacturing Overhead account of a watch manufacturer?

A) office telephone expenses
B) salaries paid to accountants
C) factory electricity expense
D) cost of printing brochures

Question 43

Which of the following describes the allocation base for allocating manufacturing overhead costs?

A) the primary cost driver of indirect manufacturing costs
B) the estimated base amount of manufacturing overhead costs in a year
C) the percentage used to allocate direct labor to Work in Process
D) the main element that causes direct costs

Question 44

Hermione Company completed Job GH6 last month. The cost details of GH6 are shown below: $$\begin{array} { | l | r | } \hline \text { Direct labor cost } & \$ 2,040 \\\hline \text { Direct materials cost } & \$ 90 \\\hline \text { Direct labor hours } & 75 \\\hline \text { Predetermined overhead allocation rate per direct labor hour } & \$ 34 \\\hline \text { Number of units of finished product } & 200 \\\hline\end{array}$$ Calculate the cost per unit of finished product of Job GH6.

A) $26.40
B) $46.80
C) $25.50
D) $23.40

Question 45

Gia Machine Shop uses a predetermined overhead allocation rate of $63.20 per direct labor hour. In January, Gia completed Job A23 which utilized 15 direct labor hours. Which of the following correctly describes the journal entry to allocate overhead to the job?

A) Debit Finished Goods Inventory $948, credit Manufacturing Overhead $948
B) Debit Manufacturing Overhead $63.20, credit Work-in-Process Inventory $63.20
C) Debit Work-in-Process Inventory $948, credit Manufacturing Overhead $948
D) Debit Cost of Goods Sold $63.20, credit Finished Goods Inventory $63.20

Question 46

The predetermined overhead allocation rate is calculated by dividing:

A) the total estimated overhead costs by total number of days in a year.
B) the estimated amount of cost driver by actual total overhead costs.
C) the actual overhead costs by actual amount of the cost driver or allocation base.
D) the estimated overhead costs by total estimated quantity of the overhead allocation base

Question 47

Iglesias Company completed Job 12 on November 30. The details of Job 12 are given below: $$\begin{array} { | l | r | } \hline \text { Direct labor cost } & \$ 840 \\\hline \text { Direct materials cost } & \$ 1,100 \\\hline \text { Machine hours } & 7\\\hline \text { Direct labor hours } &22 \\\hline \text { Predetermined overhead allocation rate } &\$ 90 \text { per machine hour } \\\hline\end{array}$$ What is the total cost of Job 12?

A) $2,570
B) $1,940
C) $1,947
D) $3,920

Question 48

The predetermined overhead allocation rate for a given production year is calculated:

A) at the end of the production year.
B) before the production year begins.
C) after completion of each job.
D) after the preparation of financial statements for the year.

Question 49

Halcyon Company completed Job 10B last month. The cost details of Job 10B are shown below: $$\begin{array} { | l | r | } \hline \text { Direct labor cost } & \$ 2,040 \\\hline \text { Direct materials cost } & \$ 90 \\\hline \text { Machine hours used } & 5 \\\hline \text { Direct labor hours } & 75 \\\hline \text { Predetermined overhead allocation rate per direct labor hour } & \$ 34 \\\hline\end{array}$$ Calculate the total job cost for Job 10B.

A) $2,640
B) $4,680
C) $2,550
D) $4,590

Question 50

Jezebel Company completed Job 12 and several other jobs in the last week. The cost details of Job 12 are shown below: $$\begin{array} { | l | r | } \hline \text { Direct labor cost } & \$ 840 \\\hline \text { Direct materials cost } & \$ 1,100 \\\hline \text { Machine hours } & 7 \text { hours } \\\hline \text { Direct labor hours } & 22 \text { hours } \\\hline \text { Predetermined overhead allocation rate per machine hour } & \$ 90 \\\hline\end{array}$$ What is the cost per unit of finished product produced under Job 12?

A) $77.88
B) $102.80
C) $12.40
D) $156.80

Question 51

Manufacturing overhead is allocated by debiting the Work-in-Process Inventory account and crediting the Manufacturing Overhead account.

Question 52

Zephyros Corporation had estimated manufacturing overhead costs for the coming year to be $316,000. The total estimated direct labor hours and machine hours for the coming year are 6,000 and 10,000, respectively. Manufacturing overhead costs are allocated based on direct labor hours. What is the predetermined overhead allocation rate?

A) $31.60 per machine hour
B) $19.75 per direct labor hour
C) $52.67 per direct labor hour
D) $39.50 per machine hour

Question 53

Sybil Inc. uses a predetermined overhead allocation rate to allocate manufacturing overhead costs to jobs. The company recently completed Job 300X. This job used 12 machine hours and 3 direct labor hours. The predetermined overhead allocation rate is calculated to be $45 per machine hour. What is the amount of manufacturing overhead allocated to Job 300X using machine hours as the allocation base?

A) $540
B) $135
C) $675
D) $405

Question 54

Which of the following will be categorized as a manufacturing overhead cost?

A) depreciation on factory plant and equipment
B) salaries paid to assembly line workers
C) administration charges of showroom
D) cost of direct materials used

Question 55

The predetermined overhead allocation rate is the rate:

A) used to assign direct material costs to jobs.
B) used to allocate actual manufacturing overhead costs incurred during a period.
C) used to allocate estimated manufacturing overhead costs to jobs.
D) used to trace manufacturing and non-manufacturing costs to jobs.

Question 56

Which of the following correctly describes the term cost driver?

A) the inflation rate that causes costs to rise
B) the average inventory costs incurred at any point of time
C) the primary factor that causes a cost to be incurred
D) the total material, labor, and overhead cost of a completed job

Question 57

Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $316,000. The manufacturing overhead costs will be allocated based on direct labor hours. Gardner estimates 5,000 direct labor hours for the coming year. In January, Gardener completed Job A33, which used 60 machine hours and 15 direct labor hours. What was the amount of manufacturing overhead allocated to job A33? (Round your intermediate calculations to one decimal place)

A) $948
B) $4,740
C) $3,792
D) $990

Question 58

The journal entry to record allocation of manufacturing overhead to a particular job includes a:

A) debit to the Finished Goods Inventory account and credit to the Manufacturing Overhead account.
B) debit to the Work-in-Process Inventory account and credit to the Cash account.
C) debit to the Manufacturing Overhead account and credit to the Finished Goods Inventory account.
D) debit to the Work-in-Process Inventory account and credit to the Manufacturing Overhead account.

Question 59

Jeremy Corporation estimated manufacturing overhead costs for the year to be $500,000. Jeremy also estimated 8,000 machine hours and 2,000 direct labor hours for the year. It bases the predetermined overhead allocation rate on machine hours. On January 31, Job 25 was completed. It required 6 machine hours and 1 direct labor hour. What is the amount of manufacturing overhead allocated to the completed job? (Round your intermediate calculations to one decimal place)

A) $1,500.00
B) $437.50
C) $375.00
D) $350.00

Question 60

The total amount of manufacturing overhead costs incurred and paid during the period is recorded on the credit side of the Manufacturing Overhead account.

Question 61

Melinda Machine Shop estimates manufacturing overhead costs for the coming year at $225,000 which will be allocated based on direct labor hours. Melinda estimates 9,000 direct labor hours for the coming year. In January, Job A33 was completed which required 8 direct labor hours and 34 machine hours. Provide the journal entry to allocate manufacturing overhead to the job.

Question 62

The Quadrangle Fabrication Plant suffered a fire incident at the beginning of the year which resulted in loss of property including the accounting records. Some data for the year were retrieved and extracts from it are shown below: $\begin{array}{c}\begin{array}{|l|}\hline \text {Total manufacturing overhead estimated at the beginning of the year}\\\hline \text {Total direct labor costs estimated at the beginning of the year }\\\hline \text {Total direct labor hours estimated at the beginning of the year }\\\hline \text {Total machine hours estimated at the beginning of the year}\\\hline \text {Actual manufacturing overhead costs for the year}\\\hline \text {Actual direct labor costs for the year}\\\hline \text {Actual direct labor hours for the year}\\\hline \text {Actual machine hours for the year}\\\hline \end{array}\begin{array}{r|}\hline\$ 105,840 \\\hline \$ 186,000 \\\hline 3,600 \text { direct labor hours } \\\hline 9,000 \text { machine hours } \\\hline \$ 99,760 \\\hline \$ 142,000 \\\hline 2,950 \text { direct labor hours } \\\hline 10,000 \text { machine hours }\\\hline\end{array}\end{array}$
The company bases its manufacturing overhead allocation on number of machine hours. What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year? (Round your intermediate calculations to two decimal places)

A) $86,730
B) $60,977
C) $152,417
D) $117,600

Question 63

Archangel Manufacturing calculated a predetermined overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. The production details for the year are given below: $\begin{array}{c}\begin{array}{|l|}\hline \text {Total manufacturing overhead estimated at the beginning of the year}\\\hline \text {Total direct labor costs estimated at the beginning of the year }\\\hline \text {Total direct labor hours estimated at the beginning of the year }\\\hline \text {Actual manufacturing overhead costs for the year}\\\hline \text {Actual direct labor costs for the year}\\\hline \text {Actual direct labor hours for the year}\\\hline\end{array}\begin{array}{r|}\hline\$140,000\\\hline\$350,000\\\hline12,400 \text { direct labor hours }\\\hline\$159,000\\\hline\$362,000\\\hline12,400 \text { direct labor hours }\\\hline\end{array}\end{array}$
Calculate the allocation rate for the year based on the above data.

A) 40%
B) 44%
C) 250%
D) 228%

Question 64

Irene Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost. At the beginning of 2014, Irene estimated total manufacturing overhead costs at $1,050,000 and total direct labor costs at $840,000. In June, 2014, Job 711 was completed. Job stats are as follows: $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 27,500 \\\hline \text { Direct labor cost } & \$ 13,000 \\\hline \text { Direct labor hours } & 400 \text { hours } \\\hline \text { Units of product produced } & 200 \\\hline\end{array}$$ How much was the cost per unit of finished product?

A) $374.38
B) $202.50
C) $254.50
D) $283.75

Question 65

Q-dot Manufacturing uses a predetermined overhead allocation rate based on direct labor hours. It has provided the following information for the year 2014: $$\begin{array} { | l | r | } \hline \text { Manufacturing overhead costs allocated to production } & \$ 189,000 \\\hline \text { Actual direct materials cost } & \$ 560,000 \\\hline \text { Actual direct labor cost } & \$ 250,000 \\\hline \text { Actual direct labor hours } & 9,450 \text { direct labor hours } \\\hline \text { Estimated machine hours } & 180,000 \text { machine hours } \\\hline\end{array}$$ Based on the above information, calculate Q-dot's predetermined overhead allocation rate.

A) $5.43 per machine hour
B) 76% of direct labor cost
C) 34% of direct materials cost
D) $20 per direct labor hour

Question 66

Equinox Fabrication Plant suffered a fire incident in August due to which most of the records for the year were destroyed. The following accounting data for the year that were recovered: $\begin{array}{c}\begin{array}{|l|}\hline\text {Total manufacturing overhead estimated at the beginning of}\\\text {the year}\\\hline\text {Total direct labor costs estimated at the beginning of the year}\\\hline\text {Total direct labor hours estimated at the beginning of the year}\\\hline\text {Actual manufacturing overhead costs for the year}\\\hline\text {Actual direct labor costs for the year}\\\hline\text {Actual direct labor hours for the year}\\\hline\end{array}\begin{array}{r|}\hline\\ \$ 105,840 \\\hline \$ 186,000 \\\hline 3,600 \text { direct labor hours } \\\hline \$ 99,760 \\\hline \$ 142,000\\\hline \text { 2,950 direct labor hours }\\\hline \end{array}\end{array}$

The company bases its manufacturing overhead allocation on direct labor hours. What was the predetermined overhead allocation rate for the year?

A) $35.87
B) $33.82
C) $29.40
D) $27.71

Question 67

The Quadrangle Fabrication Plant suffered a fire incident at the beginning of the year which resulted in loss of property including the accounting records. Some data for the year were retrieved and extracts from it are shown below: $\begin{array}{c}\begin{array}{|l|}\hline \text {Total manufacturing overhead estimated at the beginning of the year}\\\hline \text {Total direct labor costs estimated at the beginning of the year }\\\hline \text {Total direct labor hours estimated at the beginning of the year }\\\hline \text {Actual manufacturing overhead costs for the year}\\\hline \text {Actual direct labor costs for the year}\\\hline \text {Actual direct labor hours for the year}\\\hline \end{array}\begin{array}{lll}\hline\$105,840\\\hline\$186,00\\\hline3,600 \text { direct labor hours }\\\hline\$99,760\\\hline\$142,000\\\hline2,950 \text { direct labor hours }\\\hline \end{array}\end{array}$
The company bases its manufacturing overhead allocation on direct labor hours. How much manufacturing overhead was allocated to production during the year? (Round your intermediate calculations to one decimal place)

A) $105,840
B) $86,730
C) $152,417
D) $186,000

Question 68

Davie Company used estimated direct labor hours of 250,000 and estimated manufacturing overhead costs of $1,000,000 in establishing its 2015 predetermined overhead allocation rate. Actual results showed: $$\begin{array} { | l | l | } \hline \text { Actual manufacturing overhead } & \$ 900,000 \\\hline \text { Allocated manufacturing overhead } & \$ 875,000 \\\hline\end{array}$$ What was the number of direct labor hours worked during 2015?

A) 225,000 hours
B) 243,056 hours
C) 250,000 hours
D) 218,750 hours

Question 69

Haverhill Products completed Job 440 and several other jobs in the year 2014. In addition to direct labor and direct materials cost, Haverhill allocated $450 of manufacturing overhead to the job. It also incurred $300 and $75 on account of selling overhead and administration overhead. Provide the journal entry for the allocation of manufacturing overhead.

Question 70

Forsyth Company uses estimated direct labor hours of 175,000 and estimated manufacturing overhead costs of $350,000 in establishing its 2014 predetermined overhead allocation rate. Actual results showed: $$\begin{array} { | l | l | } \hline \text { Actual manufacturing overhead } & \$ 346,500 \\\hline \text { Allocated manufacturing overhead } & \$ 320,000 \\\hline\end{array}$$ The number of direct labor hours worked during the period was:

A) 175,000 hours.
B) 160,000 hours.
C) 173,250 hours.
D) 191,406 hours.

Question 71

Doric Agricultural Products uses a predetermined overhead allocation rate based on direct labor cost. The predetermined overhead allocated during the year is $270,000. The details of production and costs incurred during the year are as follows:
What is the predetermined overhead allocation rate applied by Doric?

A) 50%
B) 67%
C) 150%
D) 33%

Question 72

Venus Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost. At the beginning of the year, they fixed the manufacturing overhead rate at 20% times the direct labor cost. In the month of June, Venus completed Job 13C the costs of which are as follows: $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 6,220 \\\hline \text { Direct labor cost } & \$ 900 \\\hline \text { Direct labor hours } & 32 \text { hours } \\\hline \text { Units of product produced } & 250 \text { units } \\\hline\end{array}$$ What is the cost per unit of finished product of Job 13C?

A) $29.20
B) $33.46
C) $28.48
D) $36.70

Question 73

Felton Quality Productions uses a predetermined overhead allocation rate based on machine hours. It has provided the following information for the year 2014: $$\begin{array} { | l | r | } \hline \text { Actual manufacturing overhead costs incurred } & \$ 90,000 \\\hline \text { Manufacturing overhead costs allocated to production } & \$ 42,500 \\\hline \text { Actual direct materials cost } & \$ 220,000 \\\hline \text { Actual direct labor cost } & \$ 46,000 \\\hline \text { Actual direct labor hours } & 2,000 \\\hline \text { Actual machine hours } & 30,000 \\\hline\end{array}$$ Based on the above information, calculate the manufacturing overhead rate applied by Felton.

A) $1.42 per machine hour
B) $1.53 per machine hour
C) $7.33 per machine hour
D) $3.00 per machine hour

Question 74

Happy Clicks Inc. uses a predetermined overhead allocation rate of $4.75 per machine hour. Actual overhead costs incurred during the year are as follows: $$\begin{array} { | l | r | } \hline \text { Indirect materials } & \$ 5,200 \\\hline \text { Indirect labor } & \$ 3,750 \\\hline \text { Plant depreciation } & \$ 4,800 \\\hline \text { Plant utilities and insurance } & \$ 9,530 \\\hline \text { ther plant overhead costs } & \$ 12,700 \\\hline \text { Total machine hours used during the year } & 7,520 \text { hours } \\\hline\end{array}$$ What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year?

A) $35,980
B) $8,950
C) $27,030
D) $35,720

Question 75

Archangel Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor costs. The following are the details of production during the year: $\begin{array}{c}\begin{array}{|l|}\hline \text {Total manufacturing overhead estimated at the beginning of the year}\\\hline \text {Total direct labor costs estimated at the beginning of the year }\\\hline \text {Total direct labor hours estimated at the beginning of the year }\\\hline \text {Actual manufacturing overhead costs for the year}\\\hline \text {Actual direct labor costs for the year}\\\hline \text {Actual direct labor hours for the year}\\\hline\end{array}\begin{array}{r|}\hline\$140,000\\\hline\$350,000\\\hline12,400 \text { direct labor hours }\\\hline\$159,000\\\hline\$362,000\\\hline12,400 \text { direct labor hours }\\\hline\end{array}\end{array}$
Calculate the amount of manufacturing overhead costs allocated to production.

A) $140,000
B) $164,452
C) $144,800
D) $159,280

Question 76

The records at Smith and Jones Company show that Job 110 is charged with $11,000 of direct materials and $12,500 of direct labor. Smith and Jones Company allocate manufacturing overhead at 85% of direct labor cost. What is the total cost of Job No. 110?

A) $20,625
B) $34,125
C) $22,500
D) $21,625

Question 77

Arabica Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost. At the beginning of 2015, Arabica estimated total manufacturing overhead costs at $1,050,000 and total direct labor costs at $840,000. In June, 2015, Arabica completed Job 511. Job stats are as follows: $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 27,500 \\\hline \text { Direct labor cost } & \$ 13,000 \\\hline \text { Direct labor hours } & 400 \text { hours } \\\hline \text { Units of product produced } & 200 \\\hline\end{array}$$ How much was the total job cost of Job 511?

A) $40,500
B) $56,750
C) $50,900
D) $74,875

Question 78

Arabica Manufacturing uses a predetermined overhead allocation rate based on the number of machine hours. At the beginning of 2015, they estimated total manufacturing overhead costs to be $1,050,000, total number of direct labor hours to be 5,000, and total number of machine hours to be 25,000 hours. What was the predetermined overhead allocation rate?

A) $35 per machine hour
B) $210 per direct labor hour
C) $42 per machine hour
D) $35 per direct labor hour

Question 79

Venus Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost. At the beginning of the year, they fixed the manufacturing overhead rate at 20% of the direct labor cost. In the month of June, Venus completed Job 13C the costs of which are as follows: $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 6,220 \\\hline \text { Direct labor cost } & \$ 900 \\\hline \text { Direct labor hours } & 32 \text { hours } \\\hline \text { Units of product produced } & 250 \text { units } \\\hline\end{array}$$ What is the total cost incurred for Job 13C?

A) $8,364
B) $6,400
C) $7,120
D) $7,300

Question 80

Olympia Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost. At the beginning of 2014, Olympia estimated total manufacturing overhead costs at $1,050,000 and total direct labor costs at $840,000. In June, 2014, Job 511 was completed. Job stats are as follows: $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 27,500 \\\hline \text { Direct labor cost } & \$ 13,000 \\\hline \text { Direct labor hours } & 400 \text { hours } \\\hline \text { Units of product produced } & 200 \\\hline\end{array}$$ What is the amount of manufacturing overhead costs allocated to Job 511?

A) $16,250
B) $10,400
C) $5,000
D) $34,375