1.K Corporation reported the following data:

Estimated total manufacturing overhead : $58,000

Estimated Machine hours : 10,000

During the most recent month, the company started and completed k. There were no beginning inventories. Data concerning this job follow:

Direct Materials $8,400

Direct labor $6,800

Machine hours usage 5,700

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish prices. The calculated selling price for Job K is closest to:

• $72,561

• $17,817

• $24,187

• $48,374

2.

Coatney Inc. has provided the following data for the month of October. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

Work In Process Finished Goods Cost of Goods Sold Total

Direct materials $3,760 $ 15,870 $ 76,130 $ 95,760

Direct labor 2,400 12,420 59,580 74,400

Manufacturing overhead applied 1,950 6,240 30,810 39,000

Total $8,110 $34,530 $166,520 $209,160

Manufacturing overhead for the month was overapplied by $7,000.

The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts.

The finished goods inventory at the end of October after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

• $35,386

• $33,374

• $33,410

• $35,650

3. What effect will the underapplied overhead have on the cost of goods sold and netoperating income?

• Cost of goods sold increases, Net income increases

• Cost of goods sold decreases, Net income decreases

• Cost of goods sold increases, Net income decreases

• Cost of goods sold decreases, Net income increases

4. Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:

Total direct labor-hours		90,000
Total fixed manufacturing overhead cost	$	279,000
Variable manufacturing overhead per direct labor-hour	$	5.00

Recently, Job P951 was completed with the following characteristics:

Number of units in the job		25
Total direct labor-hours		100
Direct materials	$	700
Direct labor cost	$	9,000

The unit product cost for Job P951 is closest to: (Round your intermediate calculations to 2 decimal places.)

• $202.50

• $420.40

• $320.40

• $105.10