8

Assume a company had no jobs in progress at the beginning of July and no beginning inventories. It started and completed only two jobs during JulyJob Y and Job Z. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and for Jobs Y and Z:

Estimated total fixed manufacturing overhead	$	14,000
Estimated variable manufacturing overhead per direct labor-hour	$	1.00
Estimated total direct labor hours to be worked		2,000
Total actual manufacturing overhead costs incurred	$	12,800

	Job Y			Job Z
Direct materials	$	13,000		$	8,000
Direct labor cost	$	21,000		$	7,500
Actual direct labor hours worked		1,400			500

What is the plantwide predetermined overhead rate?

Multiple Choice

• $9.00

• $7.00

• $8.00

• $6.00

9

COTB MC Qu. 2-115 (Static) Assume a company reported the following...

Assume a company reported the following information for this year:

Budgeted (estimated) production		80,000		units
Budgeted sales		80,000		units
Production capacity		100,000		units
Selling price	$	25		per unit
Variable manufacturing cost	$	12		per unit
Estimated total manufacturing overhead cost (all fixed)	$	700,000
Selling and administrative expenses (all fixed)	$	250,000
Beginning inventories	$	0

The company expects Customer H to purchase 5 units. Using a predetermined overhead rate based on capacity with units produced as the allocation base, the budgeted manufacturing overhead cost applied to Customer H would be closest to:

rev: 04_16_2020_QC_CS-208650, 06_15_2020_QC_CS-208650

Multiple Choice

• $37.00

• $35.00

• $47.50

• $43.75

If a company recorded the following transactionraw materials used in production, $80,000 (of which $68,000 was direct and $12,000 was indirect)then which of the following statements is true?

Multiple Choice

• The Manufacturing Overhead account would decrease by $68,000.

• The Manufacturing Overhead account would increase by $68,000.

• The Work in Process account would decrease $68,000.

• The Work in Process account would increase by $68,000.