1-3 (9-11)

9. The Silver COmpany uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept A and on machine hours in Dept B. At the beginning of the year the copany made the following estimates: Dept A Dept B Direct labor cost...........................$60,000 $40,000 Manufacturing overhead.............$90,000 $45,000 Direct labor hours ...........................6000 9000 Machine hours ................................2000 15,000 What predetermined overhead rates would be used in Dept A and Dept B resoectively? A. 67% and $3.00 B. 150% and $5.00 C. 150% and $3.00 D. 67% and $5.00

10. The following information relates to Araceli Manufacturing Company: Total estimated manufacturing overhead cost at beginning of year-$864,000, Predetermined overhead rate (based on machine hours)-$7.20 per hour, Total manufacturing overhead cost incurred during the year-$885,000, Total machine hours incurred during the year-118,000 hours. What was Aracelis underapplied and overapplied overhead for last year? A. $35,400 overapplied B. $35,400 underapplied C. $15,000 underapplied D. $21,000 overapplied

11. Wayne Comapnys beginning and ending inventories for the month of June were as follows: June 1 June 30 Work in Process.........$145,000 $171,000 Finished Goods..........$85,000 $78,000 Production data for the month follow: Direct labor cost incurred-$200,000, Direct labor hours-$25,000, Actual manufacturing overhead cost incurred-$132,000, Direct materials-$170,000. Wayne applies manufacturing overhead cost to jobs based on direct labor hours and the predetermined rate is $5.75 per direct labor hour. The company does not close underapplied or overapplied manufacturing overhead to COst of Goods Sold until the end of the year. What is the amount of cost of goods manufactured? A. $508,750 B. $502,000 C. $585,000 D. $487,750