1 Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 37,700 machine-hours. The estimated variable manufacturing overhead was $7.33 per machine-hour and the estimated total fixed manufacturing overhead was $1,003,574. The predetermined overhead rate for the recently completed year was closest to:

Multiple Choice $33.95 per machine-hour $32.95 per machine-hour $7.33 per machine-hour $26.62 per machine-hour

2 The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,070. A total of 35 direct labor-hours and 243 machine-hours were worked on the job. The direct labor wage rate is $18 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $22 per machine-hour. The total cost for the job on its job cost sheet would be:

Multiple Choice

$10,191

$5,421

$8,046

$5,002

3

Garza 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 Departments predetermined overhead rate is based on machine-hours and the Customizing Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

	Casting	Customizing
Machine-hours	15,000	21,000
Direct labor-hours	11,000	10,000
Total fixed manufacturing overhead cost	$ 46,500	$ 38,000
Variable manufacturing overhead per machine-hour	$ 1.40
Variable manufacturing overhead per direct labor-hour		$ 4.10

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

Multiple Choice

$91,600

$41,000

$79,000

$38,000