Question 1

Bierce Corporation has two manufacturing departments--Machining and Finishing. 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 K. There were no beginning inventories. Data concerning those two jobs follow:
  Required:a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate that overhead rate. (Round your answer to 2 decimal places.)b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job B. (Do not round intermediate calculations.)c. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the amount of manufacturing overhead applied to Job K. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)d. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. What is the departmental predetermined overhead rate in the Machining department? (Round your answer to 2 decimal places.)e. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. What is the departmental predetermined overhead rate in the Finishing department? (Round your answer to 2 decimal places.)f. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job B? (Do not round intermediate calculations.)g. Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. How much manufacturing overhead will be applied to Job K? (Do not round intermediate calculations.)

Accepted Answer

a.The first step is to calculate the estimated total overhead costs in the two departments.Machining
  Finishing
  The second step is to combine the estimated manufacturing overhead costs in the two departments (${{[a(20)]:#,###}} + ${{[a(21)]:#,###}} = ${{[a(24)]:#,###}}) to calculate the plantwide predetermined overhead rate as follows:
  b.The overhead applied to Job B is calculated as follows:Overhead applied to a particular job = Predetermined overhead rate × Machine-hours incurred by the job= ${{[a(25)]:#,###.00}} per machine-hour × ({{[a(13)]:#,###}} machine-hours + {{[a(15)]:#,###}} machine-hours)= ${{[a(25)]:#,###.00}} per machine-hour × ({{[a(26)]:#,###}} machine-hours)= ${{[a(27)]:#,###}}c.The overhead applied to Job K is calculated as follows:Overhead applied to a particular job = Predetermined overhead rate × Machine-hours incurred by the job= ${{[a(25)]:#,###.00}} per machine-hour × ({{[a(14)]:#,###}} machine-hours + {{[a(16)]:#,###}} machine-hours)= ${{[a(25)]:#,###.00}} per machine-hour × ({{[a(28)]:#,###}} machine-hours)= ${{[a(29)]:#,###}}d.Machining Department predetermined overhead rate:
  e.Finishing Department predetermined overhead rate:
  f.Manufacturing overhead applied to Job B:
  g.Manufacturing overhead applied to Job K:

Question 2

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:
 The predetermined overhead rate is closest to:

Accepted Answer

A)   $8.80 per machine-hour
B)   $6.50 per machine-hour
C)   $2.30 per machine-hour
D)   $4.20 per machine-hour B

Question 3

Ashe Corporation has two manufacturing departments--Machining and Customizing. 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 K. There were no beginning inventories. Data concerning those two jobs follow:
 Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. The manufacturing overhead applied to Job K is closest to: (Round your intermediate calculations to 2 decimal places.)

Accepted Answer

A)   $11,760
B)   $1,740
C)   $13,716
D)   $13,500 D

Question 4

Kostelnik 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 total fixed manufacturing overhead cost of $237,000, variable manufacturing overhead of $3.90 per machine-hour, and 30,000 machine-hours. The company has provided the following data concerning Job A496 which was recently completed:  The unit product cost for Job A496 is closest to: (Round your intermediate calculations to 2 decimal places.)

Accepted Answer

A)   $133.00
B)   $72.20
C)   $45.05
D)   $180.20

Question 5

Krier Corporation uses a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $738,000 and 30,000 direct labor-hours for the period. The company incurred actual total fixed manufacturing overhead of $792,000 and 31,500 total direct labor-hours during the period.The predetermined overhead rate is closest to:

Accepted Answer

A)   $26.40
B)   $25.14
C)   $23.43
D)   $24.60

Question 6

Thrall 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 K125 was completed and required 160 machine-hours.Required:Calculate the amount of overhead applied to Job K125.

Accepted Answer

The answer of Thrall Corporation uses a job-order costing system...

Question 7

Beans 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 $162,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 60,000 direct labor-hours. Recently, Job K818 was completed with the following characteristics:  The total job cost for Job K818 is closest to: (Round your intermediate calculations to 2 decimal places.)

Accepted Answer

A)   $1,675
B)   $2,595
C)   $1,195
D)   $2,320

Question 8

Stoke 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 A460. The following data were recorded for this job:
 The amount of overhead applied in the Assembly Department to Job A460 is closest to: (Round your intermediate calculations to 2 decimal places.)

Accepted Answer

A)   $415.00
B)   $150.00
C)   $565.00
D)   $79,100.00

Question 9

Temby 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 $88,000, and a variable manufacturing overhead rate of $3.20 per machine-hour. Job K418, which was for 50 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 K418.d. Calculate the total job cost for Job K418.e. Calculate the unit product cost for Job K418.f. Calculate the selling price for Job K418 if the company marks up its unit product costs by 30%.

Accepted Answer

The answer of Temby Corporation uses a job-order costing system...

Question 10

Lueckenhoff 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 $497,000, variable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor-hours. The company has provided the following data concerning Job T498 which was recently completed:  The unit product cost for Job T498 is closest to: (Round your intermediate calculations to 2 decimal places.)

Accepted Answer

A)   $55.38
B)   $42.75
C)   $91.75
D)   $110.75

Question 11

The management of Wrights Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity rather than on the estimated amount of activity for the year. The company's controller has provided an example to illustrate how this new system would work.
  Required:a. Determine the predetermined overhead rate if the predetermined overhead rate is based on the estimated activity for the upcoming year.b. Determine the cost of unused capacity for the year if the predetermined overhead rate is based on activity at capacity.

Accepted Answer

The answer of The management of Wrights Corporation would like...

Question 12

The costs attached to products that have not been sold are included in ending inventory on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 13

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: (Round your intermediate calculations to 2 decimal places.)

Accepted Answer

A)   $688.00
B)   $116,960.00
C)   $816.00
D)   $344.00

Question 14

Dietzen Corporation has two manufacturing departments--Casting and Finishing. 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 D and Job J. There were no beginning inventories. Data concerning those two jobs follow:
  Required:a. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the total manufacturing cost assigned to Job D.b. Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Calculate the total manufacturing cost assigned to Job J.

Accepted Answer

The answer of Dietzen Corporation has two manufacturing departments--Casting and...

Question 15

Which of the following is the correct formula to compute the predetermined overhead rate?

Accepted Answer

A)   Predetermined overhead rate = Estimated total units in the allocation base ÷ Estimated total manufacturing overhead costs
B)   Predetermined overhead rate = Estimated total manufacturing overhead costs ÷ Estimated total units in the allocation base
C)   Predetermined overhead rate = Actual total manufacturing overhead costs ÷ Estimated total units in the allocation base
D)   Predetermined overhead rate = Estimated total manufacturing overhead costs ÷ Actual total units in the allocation base.

Question 16

Heroux Corporation has two manufacturing departments--Forming and Customizing. 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 A and Job H. There were no beginning inventories. Data concerning those two jobs follow:
 Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. The manufacturing overhead applied to Job A is closest to: (Round your intermediate calculations to 2 decimal places.)

Accepted Answer

A)   $14,400
B)   $15,120
C)   $28,512
D)   $29,520

Question 17

The management of Buelow Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity rather than on the estimated amount of activity for the year. The company's controller has provided an example to illustrate how this new system would work.
  Job Q58A, which required 130 machine-hours, is one of the jobs worked on during the year.Required:a. Determine the predetermined overhead rate if the predetermined overhead rate is based on the estimated activity for the upcoming year.b. Determine how much overhead would be applied to Job Q58A if the predetermined overhead rate is based on estimated activity for the upcoming year.c. Determine the predetermined overhead rate if the predetermined overhead rate is based on the activity at capacity.d. Determine how much overhead would be applied to Job Q58A if the predetermined overhead rate is based on activity at capacity.e. Determine the cost of unused capacity for the year if the predetermined overhead rate is based on activity at capacity. Garrison 16e Rechecks 2019-01-30

Accepted Answer

The answer of The management of Buelow Corporation would like...

Question 18

The management of Featheringham Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 62,000 machine-hours. Capacity is 75,000 machine-hours and the actual level of activity for the year is assumed to be 59,000 machine-hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $2,836,500 per year. It is assumed that a number of jobs were worked on during the year, one of which was Job Z77W which required 410 machine-hours.If the company bases its predetermined overhead rate on capacity, what would be the cost of unused capacity reported on the income statement prepared for internal management purposes?

Accepted Answer

A)   $137,250
B)   $605,120
C)   $491,660
D)   $467,870

Question 19

Session 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 K913 was completed with the following characteristics:
 The total job cost for Job K913 is closest to: (Round your intermediate calculations to 2 decimal places.)

Accepted Answer

A)   $6,060
B)   $2,115
C)   $6,765
D)   $5,355

Question 20

Vanliere Corporation has two production departments, Machining and Finishing. 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 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 A803. The following data were recorded for this job:
 The predetermined overhead rate for the Finishing Department is closest to:

Accepted Answer

A)   $8.80 per direct labor-hour
B)   $3.98 per direct labor-hour
C)   $12.60 per direct labor-hour
D)   $3.80 per direct labor-hour

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

The costs attached to products that have not been sold are included in ending inventory on the balance sheet.

Which of the following is the correct formula to compute the predetermined overhead rate?