9. 10. 11. 12. A company computes its predetermined overhead rate annually on the basis of direct labor- hours. At the beginning of the year,
9. 10. 11. 12. A company computes its predetermined overhead rate annually on the basis of direct labor- hours. At the beginning of the year, it estimated that its total manufacturing overhead would be $700,000 and that the total direct labor-hours would be 50,000. Its actual total manufacturing overhead for the yearwas $715,000 and its actual total direct labor-hours were 55,000 hours. Compute the company's predetermined overhead rate. Show your calculations. (1 point) Java Corporation uses a predetermined overhead rate of $28.00 per direct labor hour. This predetermined overhead rate was based on estimated total manufacturing overhead of $280,000 and 10,000 estimated direct labor-hours. The company incurred actual total manufacturing overhead costs of $300,000 and actual total direct labor-hours of 10,500 during the period. What would be the amount of manufacturing overhead applied to jobs during the period? Show your calculations. (1 point) A company's predetermined overhead rate is $10 per direct labor-hour, and its direct labor wage rate is $20 per hour. The following information pertains to job Z361: Direct materials = $500 Direct labor = $300 What would be the total manufacturing cost assigned to this job? Show your calculations. (1 point) Write out the journal entry for each of the following transactions of a company that uses job-order costing: (5 points) Transaction Journal Entry Purchased $5,000 of raw materials on account Requisitioned direct materials of $2,500 and issued them into production Incurred actual overhead costs of $8,000; assume these costs were for utilities and other factory costs Incurred $3,000 of direct labor cost and $1,000 of indirect labor cost; the workers have not yet been paid Applied $4,000 of manufacturing overhead to jobs during the production process Page 3 13. A company uses a predetermined overhead rate this year of $5 per direct labor-hour, based on an estimate of 20,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were: Actual manufacturing overhead cost incurred $107,000 Actual direct labor-hours worked 21,000 How much was the overapplied or underapplied manufacturing overhead for the year? Show your calculations. (2 points) 14. A company provides the following data on last month's operations: Direct Materials $40,000 Direct Labor $38,000 Manufacturing Overhead Applied to Work in Process $80,000 Beginning Work in Process Inventory $25,000 Ending Work in Process Inventory $20,000 How much is cost of goods manufactured for the month? Show your calculations. (1 point) Page 4 3. List two examples of typical variable costs for a manufacturing company, and two examples of typical variable costs for a merchandise company. (2 points) Manufacturing company: Merchandise company: 4. List two examples of committed fixed costs. List two examples of discretionary fixed costs. (2 points) Committed fixed costs: Discretiona ry fixed costs: 5. Given the cost formula Y = $12,000 + $9X, compute the total cost at an activity level of 20,000 units. Show your calculations. (1 point) 6. A company manufactures and sells bicycle tire pumps. Shown below are some of the costs incurred by the company last year. What is the total of the product costs in the table below? Show your calculations. (1 point) Cost of metal and plastic used in production 3 95,000 Wages paid to assembly-line workers who $107,000 assemble the tire pumps Wages paid to the Sales Manager's secretary $ 42,000 Cost of advertising $ 25,000 7. A merchandising company reported the following revenues and costs for November: Sales 400,000 Cost of goods sold (all variable) 200,000 Variable selling expense 20,000 Fixed selling expense 10,000 Variable administrative expense 13,000 Fixed administrative expense 9,000 What is the contribution margin for November? Show your calculations. (1 point) 8. Northern Star, Inc. is a merchandising company. Last month the company's merchandise purchases totaled $42,000. The company's beginning merchandise inventory was $15,000 and its ending merchandise inventory was $12,000. What was the company's cost of goods sold for the month? Show your calculations. (1 point) Page 2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance