Quiz chaptei S BA 21S

Buiing 0ctobei, Ciusan Coipoiation incuiieu $62,uuu of uiiect laboi costs anu
$4,uuu of inuiiect laboi costs. The jouinal entiy to iecoiu the acciual of these wages
woulu incluue a:
a. ) uebit to Woik in Piocess of $66,uuu
b. ) cieuit to Woik in Piocess of $66,uuu
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u. ) cieuit to Woik in Piocess of $62,uuu

Kelsh Company uses a pieueteimineu oveiheau iate baseu on machine-houis to
apply manufactuiing oveiheau to jobs. The company has pioviueu the following
estimate costs foi next yeai:

Biiect mateiials $1u,uuu
Biiect laboi $Su,uuu
Sales Commissions $4u,uuu
Salaiy of piouuction supeivisoi $2u,uuu
Inuiiect mateiials $4,uuu
Auveitising expense $8,uuu
Rent on factoiy equipment $1u,uuu

Kelsh estimates that S,uuu uiiect laboi-houis anu 1u,uuu machine-houis will be
woikeu uuiing the yeai. The pieueteimineu oveiheau iate pei houi will be:
a. )$6.4u
b. )$6.8u
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u. )$8.2u

The following uata was completeu }ob 674 on its job cost sheet. Biiect mateiials cost
was $2,uS9. A total of S2 uiiect laboi-houis weie woikeu on the job. The uiiect
laboi wage iate is $14 pei laboi-houi. The company applies manufactuiing
oveiheau on the basis of machine-houis. The pieueteimineu oveiheau iate is $1S
pei machine-houi. The total cost foi the job on its job cost sheet woulu be:
a. )$2,u68
b. )$2,487
c. )$S,112
u. )$2,967

Auveitising cost shoulu be chaigeu to the Nanufactuiing 0veiheau account.
a. ) Tiue
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Washtenaw Coipoiation uses a job-oiuei costing system. The following uata aie foi
last yeai:

Estimateu uiiect laboi-houis 12,uuu
Estimateu manufactuiing oveiheau costs $S9,uuu
Actual uiiect laboi-houis 11,uuu
Actual manufactuiing oveiheau costs $S7,uuu

Washtenaw applies oveiheau using a pieueteimineu iate baseu on uiiect laboi-
houis. What pieueteimineu oveiheau iate was useu last yeai.
a. )$S.2S pei uiiect laboi-houi
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c. )$S.SS pei uiiect laboi-houi
u. )$S.S6 pei uiiect laboi-houi

Kelson Company applies oveiheau to jobs on the basis of 6u% of uiiect laboi cost. If
}ob 2u1 shows $27,uuu of manufactuiing oveiheau applieu, the uiiect laboi cost on
the job was:
:" # 24A5666
b. ) $4S,uuu
c. ) $16,2uu
u. )$S7,8uu

Nalcolm Company uses a pieueteimineu oveiheau iate baseu on uiiect laboi-houis
to apply manufactuiing ovei to jobs.

0n Septembei 1, the estimates the month weie:
Nanufactuiing oveiheau $17,uuu
Biiect laboi-houis 1S,6uuu
Buiing Septembei, the actual iesults weie:
Nanufactuiing oveiheau $18,Suu
Biiect laboi-houis 12,uuu

Cost iecoius foi Septembei will show:
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b. ) 0nuei applieu manufactuiing oveiheau $1,Suu
c. ) 0vei applieu manufactuiing oveiheau of $S,Suu
u. ) 0vei applieu manufactuiing oveiheau of $1,Suu


The opeiations of the Keiiy Company iesulteu in unueiapplieu oveiheau of $S,uuu.
The entiy to close out this balance to Cost of uoous Solu anu the effect of the
unueiapplieu oveiheau on Cost of uoous Solu woulu be:
}ouinal Entiy Effect on Cost of uoous Solu
A Nanufactuiing oveiheau S,uuu Beuuct $S,uuu
Cost of uoous Solu S,uuu
B Cost of uoous Solu S,uuu Beuuct $S,uuu
Nanufactuiing oveiheau S,uuu
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B Nanufactuiing oveiheau S,uuu Auu $S,uuu
Cost of uoous Solu S,uuu

Chinks Coipoiation uses uiiect laboi-houis in its pieueteimineu oveiheau iate. At
the beginning of the yeai, the estimateu uiiect laboi-houis weie 11,2uu houis anu
the total estimateu manufactuiing oveiheau was $2S9,84u. At the enu of the yeai,
actual uiiect laboi-houis foi the yeai weie 1u,8uu houis anu the actual
manufactuiing oveiheau foi the yeai was $2S4,84u. 0veiheau at the enu of the yeai
was:
a. ) $4,28u oveiapplieu
b. ) $9,28u oveiapplieu
c. ) $9,28u unueiapplieu
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The actual manufactuiing oveiheau incuiieu at Bogans Coipoiation uuiing Apiil
was $S9,uuu, while the manufactuiing oveiheau applieu to Woik in Piocess was
$74,uuu. The company's Cost of uoous Solu was $69,uuu piioi to closing out its
Nanufactuiing oveiheau account. The company closes out its Nanufactuiing
0veiheau account to Cost of uoous Solu. Which of the following statements is tiue.
a. ) Nanufactuiing oveiheau was unueiapplieu by $1S,uuu; Cost of uoous Solu
aftei closing out the Nanufactuiing 0veiheau account is $Su4,uuu
b. ) Nanufactuiing oveiheau was unueiapplieu by $1S,uuu; Cost of uoous Solu
aftei closing out the Nanufactuiing 0veiheau account is $274,uuu
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u. ) Nanufactuiing oveiheau w as oveiapplieu by $1S,uuu; Cost of uoous Solu aftei
closing out the Nanufactuiing 0veiheau account is $Su4,uuu