Question 1

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 2

Thach 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 $665,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine-hours.Recently, Job T321 was completed with the following characteristics:  The unit product cost for Job T321 is closest to:

Accepted Answer

A)  $117.00
B)  $58.50
C)  $154.50
D)  $51.50 C

Question 3

Carradine 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 $105,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine-hours.The company recently completed Job P233 which required 60 machine-hours.The amount of overhead applied to Job P233 is closest to:

Accepted Answer

A)  $90
B)  $270
C)  $450
D)  $180 B

Question 4

Generally speaking, when going through the process of computing a predetermined overhead rate, the estimated total manufacturing overhead cost is determined before estimating the amount of the allocation base.

Accepted Answer

A) True 
 B)False

Question 5

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.

Accepted Answer

The answer of Amason Corporation has two production departments, Forming...

Question 6

The total job cost for Job T288 is closest to:

Accepted Answer

A)  $672
B)  $2,088
C)  $2,302
D)  $4,390

Question 7

The estimated total manufacturing overhead for the Assembly Department is closest to:

Accepted Answer

A)  $77,600
B)  $101,600
C)  $56,674
D)  $24,000

Question 8

The estimated total manufacturing overhead for the Casting Department is closest to:

Accepted Answer

A)  $387,260
B)  $134,300
C)  $28,900
D)  $105,400

Question 9

Juanita Corporation uses a job-order costing system and applies overhead on the basis of direct labor cost.At the end of October, Juanita had one job still in process.The job cost sheet for this job contained the following information:  An additional $100 of labor was needed in November to complete this job.For this job, how much should Juanita have transferred to finished goods inventory in November when it was completed?

Accepted Answer

A)  $1,330
B)  $500
C)  $1,230
D)  $1,730

Question 10

Posson 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 20,000 machine-hours, total fixed manufacturing overhead cost of $130,000, and a variable manufacturing overhead rate of $3.00 per machine-hour.Job K789, which was for 10 units of a custom product, was recently completed.The job cost sheet for the job contained the following data:  Required:
a.Calculate the predetermined overhead rate for the year.
b.Calculate the amount of overhead applied to Job K789.
c.Calculate the total job cost for Job K789.
d.Calculate the unit product cost for Job K789.

Accepted Answer

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

Question 11

The predetermined overhead rate for the Customizing Department is closest to:

Accepted Answer

A)  $4.55 per direct labor-hour
B)  $3.90 per direct labor-hour
C)  $10.50 per direct labor-hour
D)  $14.40 per direct labor-hour

Question 12

Longobardi 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 Corporation estimated the labor-hours for the upcoming year at 46,000 labor-hours.The estimated variable manufacturing overhead was $6.25 per labor-hour and the estimated total fixed manufacturing overhead was $1,026,260.The actual labor-hours for the year turned out to be 41,200 labor-hours.The predetermined overhead rate for the recently completed year was closest to:

Accepted Answer

A)  $28.56 per labor-hour
B)  $22.31 per labor-hour
C)  $6.25 per labor-hour
D)  $31.16 per labor-hour

Question 13

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours.The amount of manufacturing overhead applied to Job G is closest to:

Accepted Answer

A)  $14,388
B)  $26,160
C)  $11,772
D)  $18,320

Question 14

In absorption costing, nonmanufacturing costs are assigned to units of product.

Accepted Answer

A) True 
 B)False

Question 15

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.

Accepted Answer

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

Question 16

Camm Corporation has two manufacturing departments--Forming 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:

Accepted Answer

A)  $2.50
B)  $2.30
C)  $4.80
D)  $5.46

Question 17

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 18

The estimated total manufacturing overhead for the Forming Department is closest to:

Accepted Answer

A)  $36,800
B)  $102,400
C)  $309,867
D)  $139,200

Question 19

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 40% on manufacturing cost to establish selling prices.The calculated selling price for Job A is closest to:

Accepted Answer

A)  $51,970
B)  $72,758
C)  $80,034
D)  $20,788

Question 20

The total job cost for Job P505 is closest to:

Accepted Answer

A)  $9,400
B)  $9,940
C)  $7,740
D)  $2,740

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