21 gardner machine shop estimates manufacturing overhead costs for the coming year a 4306514

21 gardner machine shop estimates manufacturing overhead costs for the coming year a 4306514

21) 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, Gardner 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

22) Midtown Inc. uses a predetermined overhead allocation rate of $63.20 per direct labor hour. In January, the company 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 and credit Manufacturing Overhead $948

B) debit Manufacturing Overhead $63.20 and credit Work-in-Process Inventory $63.20

C) debit Work-in-Process Inventory $948 and credit Manufacturing Overhead $948

D) debit Cost of Goods Sold $63.20 and credit Finished Goods Inventory $63.20

23) Halcyon Inc. completed Job 10B last month. The cost details of Job 10B are shown below.

Direct labor cost

$2,040

Direct materials cost

$90

Machine hours used

5

Direct labor hours

75

Predetermined overhead allocation rate per direct labor hour

$34

Calculate the total job cost for Job 10B.

A) $2,640

B) $4,680

C) $2,550

D) $4,590

24) Haddows Inc. completed Job GH6 last month. The cost details of GH6 are shown below.

Direct labor cost

$2,040

Direct materials cost

$90

Direct labor hours

75

Predetermined overhead allocation rate per direct labor hour

$34

Number of units of finished product

200

Calculate the cost per unit of finished product of Job GH6.

A) $26.40

B) $46.80

C) $25.50

D) $23.40

25) Jezebel Inc. completed Job 12 and several other jobs in the last week. The cost details of Job 12 are shown below.

Direct labor cost

$840

Direct materials cost

$1,100

Machine hours

7 hours

Direct labor hours

22 hours

Predetermined overhead allocation rate per machine hour

$90

Number of units of finished product

25 units

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

26) Arabica Manufacturing uses a predetermined overhead allocation rate based on the number of machine hours. At the beginning of 2015, it 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

27) 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. The details of Job 511 are shown below.

Direct materials cost

$27,500

Direct labor cost

$13,000

Direct labor hours

400 hours

Units of product produced

200

What is the amount of manufacturing overhead costs allocated to Job 511?

A) $16,250

B) $10,400

C) $5,000

D) $34,375

28) 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. The details of Job 511 are shown below.

Direct materials cost

$27,500

Direct labor cost

$13,000

Direct labor hours

400 hours

Units of product produced

200

How much was the total job cost of Job 511?

A) $40,500

B) $56,750

C) $50,900

D) $74,875

29) Irene Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost. At the beginning of 2014, the company estimated total manufacturing overhead costs at $1,050,000 and total direct labor costs at $840,000. In June, 2014, Job 711 was completed. The details of Job 711 are shown below.

Direct materials cost

$27,500

Direct labor cost

$13,000

Direct labor hours

400 hours

Units of product produced

200

How much was the cost per unit of finished product?

A) $374.38

B) $202.50

C) $254.50

D) $283.75

30) Venus Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost. At the beginning of the year, it fixed the manufacturing overhead rate at 20% of the direct labor cost. In the month of June, Venus completed Job 13C and its details are as follows:

Direct materials cost

$6,220

Direct labor cost

$900

Direct labor hours

32 hours

Units of product produced

250 units

What is the total cost incurred for Job 13C?

A) $8,364

B) $6,400

C) $7,120

D) $7,300

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