1. Manufacturing overhead (MOH) is applied to jobs using normal costing (used in chapter 2 & 3) by taking the predetermined overhead rate (POHR) and multiplying it by the estimated (budgeted) allocation base (ideally the cost driver).

Group of answer choices:

a) True

b) False

2. Which type of overhead rate is overly-simplistic?

Group of answer choices:

a) Division

b) Departmental

c) Plantwide

3. Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication. It started, completed, and sold only two jobs during MarchJob P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

	Molding			Fabrication			Total
Estimated total machine-hours used		2,500			1,500			4,000
Estimated total fixed manufacturing overhead	$	10,000		$	15,000		$	25,000
Estimated variable manufacturing overhead per machine-hour	$	1.40		$	2.20

	Job P			Job Q
Direct materials	$	13,000		$	8,000
Direct labor cost	$	21,000		$	7,500
Actual machine-hours used:
Molding		1,700			800
Fabrication		600			900
Total		2,300			1,700

Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

What was the companys departmental predetermined overhead rate in the Molding Department? (Round your answer to 2 decimal places.)

Group of answer choices:

a) $12.20 per DLH

b) $5.40 per DLH

c) $5.40 per MH

d) $12.20 per MH

4.

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication. It started, completed, and sold only two jobs during MarchJob P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

	Molding			Fabrication			Total
Estimated total machine-hours used		2,500			1,500			4,000
Estimated total fixed manufacturing overhead	$	10,000		$	15,000		$	25,000
Estimated variable manufacturing overhead per machine-hour	$	1.40		$	2.20

	Job P			Job Q
Direct materials	$	13,000		$	8,000
Direct labor cost	$	21,000		$	7,500
Actual machine-hours used:
Molding		1,700			800
Fabrication		600			900
Total		2,300			1,700

Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

If the company uses the departmental manufacturing overhead rates, how much manufacturing overhead was applied from the Fabrication Department to Job P? (Do not round intermediate calculations.)

Group of answer choices:

a) $4,320

b) $9,180

c) $7,320

d) $10,980