Question
4A. Harootunian Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate
Harootunian Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:
Total machine-hours | 80,000 | |
Total fixed manufacturing overhead cost | $ | 312,000 |
Variable manufacturing overhead per machine-hour | $ | 2.10 |
|
Recently, Job T629 was completed with the following characteristics:
Number of units in the job | 50 | |
Total machine-hours | 200 | |
|
The predetermined overhead rate is closest to:
Multiple Choice
- $8.10 per machine-hour
- $2.10 per machine-hour
- $3.90 per machine-hour
- $6.00 per machine-hour
4B.
Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:
Total machine-hours | 30,000 | |
Total fixed manufacturing overhead cost | $ | 252,000 |
Variable manufacturing overhead per machine-hour | $ | 2.10 |
|
Recently, Job T687 was completed with the following characteristics:
Number of units in the job | 10 | |
Total machine-hours | 30 | |
Direct materials | $ | 675 |
Direct labor cost | $ | 1,050 |
|
The estimated total manufacturing overhead is closest to:
Multiple Choice
- $315,000
- $252,000
- $252,002
-
$63,000
4C.
Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated | Expected Activity | |||||
Activity Cost Pools | Activity Measures | Overhead Cost | Product N6 | Product N7 | Total | |
Labor-related | DLHs | $ | 345,060 | 2,100 | 5,000 | 7,100 |
Machine setups | setups | 128,534 | 600 | 800 | 1,400 | |
Order size | MHs | 107,598 | 4,100 | 3,800 | 7,900 | |
$ | 581,192 | |||||
|
The activity rate for the Machine Setups activity cost pool is closest to:
rev: 03_25_2018_QC_CS-119201
Multiple Choice
- $73.57 per setup
- $91.81 per setup
- $26.24 per setup
- $28.32 per setup
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