100. The total cost of Job No. 175 was $1,200. Direct materials amounted to $30. Overhead is allocated at the rate of 30% of direct labour cost. The direct labour cost on this job was. a) $923.08 b) $900.00 c) $853.32 d) $692.31 Answer: b Difficulty: Medium Learning Objective: Explain product costs and cost flows through the manufacturing process. Learning Objective: Describe how costs are assigned to customized goods and services. CPA: Management Accounting 101, The total cost of Job No. 195 was $1,500. Direct materials for this job amounted to $660. Overhead is allocated at the rate of 40% of direct labour cost. The overhead cost on this job was: a) $600 b) $840 c) $470 d) $240 Answer: d Difficulty: Medium Learning Objective: Explain product costs and cost flows through the manufacturing process. Learning Objective: Describe how costs are assigned to customized goods and services. CPA: Management Accounting 102. Star Company's accountants estimate total overhead for each month will be $64,000. They will allocate overhead on the basis of direct labour cost. During the current month, three obs were worked on: Job 745 Job 746 $36,000 $56,000 $24,000 Job 747 Direct material Direct labour S56,000 $72,000 $40,000 Job 745 was completed and sold, Job 746 was completed and Job 747 is still in process. Budgeted direct labour cost for the month was $160,000 and actual overhead was $65,800. The amount of over- or underapplied overhead for the month 102. Star Company's accountants estimate total overhead for each month will be $64,000. They will allocate overhead on the basis of direct labour cost. During the current month, three jobs were worked on: Job 745 Job 746 $36,000 $56,000 $24,000 Job 747 Direct material Direct labour $56,000 $72,000 $40,000 Job 745 was completed and sold, Job 746 was completed and Job 747 is still in process. Budgeted direct labour cost for the month was $160,000 and actual overhead was $65,800. The amount of over-or underapplied overhead for the month was a) $1.400 overapplied b) $1,800 underapplied c) $4,848 overapplied d) $8,000 underapplied Answer: a Difficulty: Medium Learning Objective: Allocate overhead costs to individual jobs. 103. Star Company's accountants estimate total overhead for each month will be $64,000. They will allocate overhead on the basis of direct labour cost. During the current month, three jobs were worked on: Job 745 Jo746 Job 747 Direct material Direct labour $36,000 $56,000 $24,000 $56,000 $72,000 $40,000 Job 745 was completed and sold, Job 746 was completed and ob 747 is still in process. Budgeted direct labour cost for the month was $160,000 and actual overhead was $65,800. Assuming overhead was $2,000 underapplied and that this amount is considered material, the balance of work in process after allocation of the underapplied overhead based on overhead charged to the accounts during the period is: a) $115,073 b) $80,456 c) $113,727 d) $79,544 Answer: b Difficulty: Medium