1. Riverview Company's budget for the coming year includes $7,200,000 for manufacturing overhead, 50,000 hours of direct...
Question:
1. Riverview Company's budget for the coming year includes $7,200,000 for manufacturing overhead, 50,000 hours of direct labor, and 250,000 hours of machine time.
If Riverview applies overhead using a predetermined rate based on machine-hours, what amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.30 labor hours to complete?
Multiple Choice
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$144.00
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$43.00
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$28.80
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$14.40
2. Riverview Company's budget for the coming year includes $7,400,000 for manufacturing overhead, 50,000 hours of direct labor, and 200,000 hours of machine time.
If Riverview applies overhead using a predetermined rate based on labor-hours, what amount of overhead will be assigned to a unit of output which requires 0.6 machine hours and 0.60 labor hours to complete?
Multiple Choice
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$88.80
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$4.00
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$37.00
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$59.00
3. Capri Boat Corporation uses a job order cost system and applies overhead based on a percentage of direct labor cost. Cost flows through the Work in Process Inventory account during March are given below:
Work in Process | ||||
---|---|---|---|---|
Debit | Credit | |||
Beginning Balance | 0 | Transferred Out | 175,400 | |
Direct Materials | 44,000 | |||
Direct Labor | 83,000 | |||
Overhead | 166,000 | |||
Ending Balance | 117,600 |
Only Job #007 was still in process at the end of March and this job had been charged with $33,000 in direct materials cost.
The amount of direct materials cost charged to completed jobs during March was:
Multiple Choice
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$16,500.
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$117,600.
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$11,000.
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$41,500.
4. Starbright manufactures child car seats, strollers, and baby swings. Starbright's manufacturing costs are budgeted as follows:
Factory utilities: $95,000
Factory foremen salaries: $92,000
Machinery setup costs: $36,000
Total manufacturing overhead: $223,000
The company uses activity-based costing to allocate its manufacturing overhead costs to products based on the following schedule:
Overhead Cost | Allocation Base | Estimated Activity Level |
---|---|---|
Factory Utilities | Direct labor-hours | 14,980 |
Factory foremen salaries | Machine hours | 18,950 |
Setup costs | Number of production runs | 171 |
During the current month, the following levels of activities were incurred:
Car Seats | Strollers | Baby Swings | Total | |
---|---|---|---|---|
Direct Labor Costs | $ 70,060 | $ 120,900 | $ 41,230 | $ 232,190 |
Direct Labor Hours | 4,520 | 7,800 | 2,660 | 14,980 |
Machine Hours | 5,750 | 9,200 | 4,000 | 18,950 |
Production Runs | 45 | 74 | 52 | 171 |
Units Produced | 1,700 | 3,600 | 1,090 | 6,390 |
What are the factory foremen salaries allocated to Car Seats during the current month? (Do not round intermediate calculations. Round your answer to the nearest dollar.)
Multiple Choice
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$92,000
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$44,665
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$27,916
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$19,419