At the beginning of the year, Lola, Inc. estimated that overhead would be $540,000 and direct labor hours would be 180,000. At the end of the year, actual overhead was $616,000 and there were actually 205,200 direct labor hours, ‘What is the overhead varianes $5 40,000 Pok ‘A. $76,000 underapplied \ 1, owe $76,000 overapplied $400 underapplied Ailsa 295,208 D. $400 overapplied 4c 43 btS, 600 Mitchell's Sofiball Gloves Company estimated the following at the beginning of the year Assembly Department ‘Testing Department Total Overhead $570,000, + $130,000 = $700,0 Direct Labor Hours 142,500 + 32,500 = “T75,000 Machine Hours “35000 65,000 “000 — Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department. ‘Actual data for August is as follows: ‘Assombl tment ‘Testing Department Total Overhead $42,000 $12,000 $54,000 Direct Labor Hours 13,500 2,430 15,930 Machine Hours 4,020 11,000 15,020 If Mitchell uses a plantwide overhead rate based on direct labor hours, instead of departmental rates, what is the predetermined overhead rate rounded to the nearest cent? 8 700,000 A. $5 per direct labor hour Poa = * 190 oe B, $7.22 per machine hour 118,000 4 per direct labor hour $2.57 per direct labor hour > F400 [wn E, 52 per direct labor hour . Mitchell decides to continue using departmental overhead rates, What are the predetermined rates for the Assembly and Testing departments respectively? G&> Assembly: $4 per direct labor hour; Testing: $2 per machine hour B, Assembly: $2 per direct labor hour; Testing: $4 per machine hour C. Assembly: $4 per direct labor hour; Testing: $4 per direct labor hour D. Assembly: $7.22 per machine hour; Testing: $7.22 per machine hour Assanbly-Ladev Hrues = eMeckie bows fous 4526122 Ag] ppp TU oa |e 142 Soe 65,084. On February 1, Job 12 had a beginning balance of $200. During February, direct materials of $500 and direct labor of $200 were added to the job. Overhead is applied to production at a rate of 55% of direct labor. There are 5 units in Job 12. Appliid Orwhsed- ¥ 200 - hv Cok What is the unit cost? $202 B. $1010 Ash c. $162 Te $1 a1° Jourits D. $810 = "Ys + 2 i 5. Bryant Company designs and builds fancy dining room tables for individual customers. On July 1, there were two jobs in process: Job 391 with a beginning balance of $21,700 and Job 392 with a beginning balance of $8,790. Ovethead costs are applied by using a rate of 70% of direct labor costs, Both jobs are unfinished on July 31. Data on July costs for both jobs are as follows: Job 391 Job 392 Tel Direct Materials $5,100 $9,200 = 14,300 Direct Labor Cost 2,700 11,000 = ji sz end What is the total of the Work-in-Process Account at July 31? 2 Kp uahenr wip 3S ee We soto ae : 0 368,080 ae D. $37,590 we. 6. Ending Work-in-Process for Lee's Carpeniry'W48 $64,000 for January. Direct labor and direct materials together for the month were $39,000. Direct labor was twice as much as direct materials. ‘The overhead rate is 70% of direct labor. No jobs were finished during the month, What was beginning Work-in-Process? lez G2 s6,800 B. $25,000 = F400 Cc. $4,250 MPL = 34, D. $15,250 mizm= FF 000 gms 31,002 mae 13,008 34,000 Le 26,c007. Schultz Lawnmower Company makes custom lawnmowers for individual customers. On July I, there was one job in process, Job 757, with a cost of $45,650, Jobs 758, 759, and 760 were started during. the month of July. Data on costs added during the month are as follows: Teel Job 757 Job 758 Job 759 Job 760, en Direct Materials $1230 + $6740 + $2520 + $7870 = 27 Direct Labor $5,880 4 $10,280 t $3,760, yp S11360 & 3, 1 Overhead is applied to production at the rate of 85% of direct labor cost. Job 760 was completed on July 26 and the client was billed at cost plus 45%. All other jobs remained in process Calculate the balance in Work-in-Process on July31. WP : who Applied Dnsheod A. $106,570 65. W650 a 43/20 $88,340 $104,262 m 24,68 Gv x. 5520 D. $133,148 L 3,280 q Gpapeat B, $87498 Apletoh 26,548 26/585 i = : 7 8, Whats the price of Job 760? Exh; (Ott Tome A. $28,886 soe a nee i a $28; 28; My Fee 95% BD $41,884.70 wa Xx CBD XUAS Musto [ER Fae D. $74,536 ee Ve 4. Je #5 9. If selling and administrative expense for the month of July equaled $ 6,000, what is operating income for the month of July? Sales Revinwe #1, 854.70 even , G $6,998.70 Lost of Goods Sle £24,886 029 B. $28,886.00 : C. $12,998.70 Gross Bobb ELT D. $41,884.70 Oprredess Expenses LG, 000% Opertnty Tree F880. 78 10. When purchasing raw materials on account, what type of accounts would increase? AL Assets B. Liabilities Assets and Liabilities EquityFrid Gus Jobs 177, and 179 are sold during February. Stutz sells its product at cost plus 40%, 11, Which of the following is true? ‘A. The adjusted cost of goods sold is equal to normal cost of goods sold plus or minus the overhead variance. B. Ifthe overhead variance shows overapplied overhead, then that amount would be subtracted from normal cost of goods sotd. C, Variances in overhead are expected every month, Mlof these are tue, 12. Stutz, Inc. de ns and builds basketball gymnasiums. Each gymnasium is custom-built to individual customer's specifications. Stutz uses job-order costing to keep track of its costs, In February it worked on three jobs. Data for these jobs are as follows: Job 175 Job 178, Job 179 Balance 2/1 $13,790 $0 30 Direct Materials 16,200 8,500 30,500 Direct Labor Cost 23,300 7,600 48,000 Machine Hours 400 300 2,000 Overhead is applied to jobs at the rate of $25 per machine hour. By February 28, Job 178 is the only one.unfinished. The balance of Finished Goods on February 1 is $94,000 (consisting of Job 177), wiP Calculate the balance of Finished Goods at February 28 1/4 a gos TT is Gp ne Tob ng 34 Bite] coe 7 64s be aes 2 om 85,071 18%, ii V , .1B)14 = BES. Brel ys TC. $63,690 4 ae $500 + 5o,%ee o peat ee AD. $53,290 Ie, ‘200 00 alt bY Yan : 2,800 $3 Toe F108 wh OF LE ee f108g gt OK 1, 620 4g 4 $0,002" ae Z yrs 13: Atthe beginning ofthe year, Wison Co Bie imaied he fling: | 12S, 1 alte a Overhead $360,000 et #340 +00 é Direct labor hours 60,000 Tors eos 2 #6/He q Wilson used normal costing and applies overhead on the basis of direct labor hours. For the month of ‘September, direct labor hours equaled 9,350 and actual overhead equaled $46,750, Calculate the overhead applied to production in September. $56,100 9 380 Mar tidy, Ouches B. $30,000 “ C. $46,750 xb D. $5 per direct labor hour —_— SZ, 100 Applica Ow epphid14, When overhead is debited to Overhead Control, what is the credit? Various payable accounts Raw materials, C. Supplies D. Equity 15. The Childers Company manufactures golf clubs. During the fiscal year just ended, the company incurred prime costs of $1.5 million and conversion costs of $1.8 million. Overhead is applied at the rate of 200% of direct labor costs, How much of the above costs represent direct materials cost? S : ovo A. $1,500,000 Prime Lost > Molortals p Labaw ML 180% B, $300,000 2 _ Ye CH vet 7, Fou, 8° $o00.000 Envi bot labev +2 se h $600,000 Drwhead is applisa at the ay tte Cr2L= 1, B00, 7° . Boe every b1 ot labor © 206%o BLE J, Tee, do 16. The following budget data are available for Happy Company: £= M00, 000 3d direct lab 000 mt bo0,s09 = 15 Estimated direct labor hoyrs, 12, iy Estimated diectGollars 20°” 590,000 M+ G08,00 Estimated factory overhead costs 179.0 Actual direct labor hours STS Actual direet dollars $92,000 ‘Actual factory overhead costs $180,000 If factory overhead is to be applied based on direct labor dollars, the predetermined overhead rate is $174,200 Lene —— -Mh C. 196%. 9 Go, 000 D. $1492 17. Why are annual overhead application rates used? A. To budget overhead B. To smooth seasonal v CC. To smooth seasonal vi To smooth seasonal v: ility of overhead costs ility of output levels ility of overhead costs and output levels.18, During the current accounting period, a manufacturing company purchased $70,000 of raw materials, of which $50,000 of direct materials and $5,000 of indirect materials were used in production. The company also incurred $45,000 of total labor costs and $20,000 of other factory overhead costs. An analysis of the work-in-process control account revealed $40,000 of direct labor costs. Based upon the above information, what is the total amount accumulated in the factory overhead control account? A. $25,000 elucl LFS ro wdinet tcberale $30,000 ae C. $45,000 Oushedk Fees peau: D. $50,000 2 40,000 vey Orrick A 3e, 000 19. Schnieder, Inc, had the Following information relating to Year | Budgeted factory overhead $74,800 —_ a“ Actual factory overhead $78,300 Applied factory overhead $76,500 Estimated direct labor hours 44,000 oe ae If Schneider decides to use the actual results from Year 1 to determine the Year 2 overhead rate, what is the Year 2 overhead rate? Yeav 1 av & CC A. $1.70 4 8, 300% B. $1,738 $74,500 = 1e Poe 478, $1,740 Fbo00 shee HES 45,9 31.780 7 He ; 44¢,500/] 1-1 = £5,000 Aelvel Hovas fy. 74 Po 20, The difference between variable costs and fixed costs is ‘A. Unit variable costs fluctuate, and unit fixed costs remain constant. Unit variable costs are fixed and unit fixed costs are variable. C. Total variable costs are variable and are fixed in the long term, while fixed costs never change. D. Unit variable costs change in varying increments, while unit fixed costs change in equal increments,21. The following budget data are available for Happy Company: Estimated direct labor hours 12,000 Estimated direct dollars $90,000 Estimated factory overhead costs $180,000 Actual dit 00, Actual 000 Actual factory overhead costs $181,000 If factory overhead is to be applied based on direct labor hours as the cost allocation base for the predetermined overhead rate, the amount of overhead applied into production is 11,800 fetrel thurs = Fs /ke KS 7 tine 14 A, $181,000 $184,000 Esinsm $180,000 22. Scooby Company has applied $567,988 of overhead into production on Jobs in the Work in Process account. Actual overhead at the end of the year is $575,000. What is the adjustment for over or underapplied overhead? AB. Diodeood $7,012 Overapplied, decrease Cost of Goods Sold $7,012 Underapplied, increase Cost of Goods Sold C. $7,012 Overapplied, increase Cost of Goods Sold D. $7,012 Underapplied, decrease Cost of Goods Sold Jolt : if unde apphed 23. Acitelli Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead.......... $357,000 ‘Esiimated machine-hours 8,500 Actual manufacturing overhead..... $358,000 Actual machine-hOus......cnnrmnnenrne 8,560 ‘The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company’s predetermined overhead rate for the year. —____ ‘The applied manufacturing overhead for the year is closest to: A. $357,979 > 59 200 Mls, echo B, $360,547 FET er8 CE $359,520 OF Se D. $362,088 pe 8, See ff 24 faahine24, Carley Products has no work-in-process or finished goods inventories at year end. The balances of Carley’s accounts include the following: aoe 204,000 : Cost of goods sold $2,040,000 + 41? % FUN Ady olt Appl General selling and administrative expenses 900,000 Ache Se Sales 3,600,000 S 74q00ef FO Factory overhead control 700,000 os ot Factory overhead applied 648,000 Fy nal Carley’s operating income forthe year is oe ‘ > G@ $608,000 Geb of Guvds Fold 22,082,000 B. $660,000 oe CC. $712,000 Greer Poke hy Som a D. $1,508,000 peed Expres 400 000 dparetiny Lreme B08, 9° Zt 25. Under Pick Co.’s job-order costing system, manufacturing overhead is applied to Work-in-process using a predetermined annual overhead rate. During January, Pick’s transactions included the following: Direct Materials issued to production $90,000 Indirect materials issued to production 8,000 Manufacturing overhead incurred 125,000 Manufacturing overhead applied 113,000 Direct labor costs 107,000 Pick had neither beginning nor ending work-in process inventory. What was the pst of jobs completed in January? wiP. A. $302,000 2 Goa Coath $310,000 $322,000 + H3,o8 eee D. $330,000 4 et, 00e 26. Which of the following is the correct formula to compute the predetermined overhead rate? ‘A. Estimated total units in the allocation base divided by estimated total manufacturing overhead costs. Estimated total manufacturing overhead costs divided by estimated total units in the allocation base C. Actual total manufacturing overhead costs divided by estimated total units in the allocation base. D, Estimated total manufacturing overhead costs divided by actual total units in the allocation base.27. What document is used to determine the actual amount of direct labor to record on a job cost sheet? ime ticket payroll register C. production order 1D, wages payable account, 28. Qverapplied manufacturing overhead occurs when: applied overhead exceeds actual overhead. ‘B, applied overhead exceeds estimated overhead. C. actual overhead exceeds estimated overhead, D, budgeted overhead exceeds actual overhead. 29. Crinks Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the rear, the estimated direct labor-hours were 11,200 hours and the total estimated manufacturing overhead was $259,840. At the end of the year, sual diet abacus for the year were 10,800 hours and the actual manufacturing overhead for the year was $254,840, Ovethead at the end of the . Ovhiod Je, feo HAS year was AS4280ovenmled ap. #259 to Ads 954,840 Actual B. $9,280 overapplied cas 1) 250, 5 $9,280 underapplied 7,200 SAB 2570 xa3.te (xan uunderapplied 2 $25.20 sor Aon R550 500 dee applied = Applne 30. Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on @ machine-hours basis in Department B. At the beginning oP The Tox recently Completed year, the company made the following estimates? Dept.A Dept. B Direct labor cost....... $56,000 $33,000 Manufacturing overhead $67,200 $45,000 Direct labor-hours. 8,000 9,000 Machine-hours 4,000 15,000 What predetermined overhead rate would be used in Department A and Department B, respectively? A. 83% and $5 Sore om and $3 Jot A Dot & erie 120% and $3 85% and $4 4 44,200 Faye gy pe ieee Fe /ue HS, 008 15,202 poe = J207e31. The following data have been recorded for recently completed Job 674 on its job cost sheet. Direct materials cost was $2,039. A total of 32 direct labor-hours and 175 machine-hours were worked on the job. The direct labor wage rate is $14 per labor-hour. The cofmpany applies manufacturing, overhead on the basis of machine-houfS. The predetermmed overhead rate is $15 per machine-hour The total Gost for the job on its job cost sheet would be: com ASE 967 Labor overheod B. $2,487 ie = $2,068 089 IA Hewws 175 Hones Gsm nh rhe xhs 7 Gatetee aoe ApyfsO- 4 2,625 445 SNL 32. Ajax Corporation transferred $72,000 of raw materials to its production department in February and. incurred $37,000 of conversion costs ($22,000 of direct labor and $15,000 of overhead). At the beginning of the period, $14,000 of inventory (direct materials and conversion costs) was in process, At the end of the period, $18,000 of inventory was in process. What was the cost of goods manufactured? =o ey brody 105,000 wiP fash $109,000 . have ~ ©. $123,000 i, sale Ce > oe D. $141,000 i ’ toa = baw LroH 37,408 18)40° 33, If the cost of goods sold forthe Cole Manufacturing Co is $108,000 and finished goods inventory decreased by $9,000 during the year, what was the year-end cost of goods manafactured? $9,000 \s 96,000 wih fui Gul $105,000 Coun D. $114,000 iu9 [Cos,000_~> Gost b Gods Selb must Anve Sold 2 Eaniy ? ews Completed aot) de pre bees 7 34, The work-in process account of Parrott Corporation increased $11,500 from the beginning to the end of November. Costs incurred during November included $12,000 for direct materials, $63,000 for direct labor, and $21,000 for overhead. What was the cost of goods manufactured during November? $75,000 $84,500 $96,000. D. $107,500 He the padente trerensed darcy Ye pesied, Hew all ol the uss added Burns Ye snrvenk pork toold pt have heen franstevced ont be beam é