ACC 700 MOCK TEST Predetermined Overhead Rate Gurpreet Ltd and Bhuwon Ltd apply manufacturing overhead to work-in-process inventory using a predetermined overhead rate. Gurpreet Ltd applies MOH based on direct labour hours, and Bhuwon Ltd applies MOH based on units of production. The estimated costs and activities are as follows; Gurpreet Ltd 40,000 $150,000 50,000 $200,000 Bhuwon Ltd 20,000 $80,000 60,000 $120,000 Direct labour hours Direct labour cost Units produced MOH cost 1. Calculate the predetermined overhead rate for Gurpreet Ltd: 2. Calculate the predetermined overhead rate for Bhuwon Ltd: 3. During the period, Gurpreet Ltd used 32,000 direct labour hours. Calculate the MOH applied: with the following 4. During the period, Bhuwon Ltd manufactured 61,000 units and incurred MOH of $126,000. Determine whether MOH was under/over-applied by how much for the period: Budgeting Abrar expects to begin the coming year with 2,000 units of a specific product in finished goods inventory. It expects to sell 5,000 units and end the year with 4,000 units in FG inventory. 1. Calculate the number of the products budgeted for production in the coming year ,000. 2. Each unit of production requires 2kgs of Raw Material. The company expects to have 1,000 kg at the beginning of the coming year and wishes to end the year with 3,000 kg in inventory. How many kilograms of Material must the company purchase during the year? 3. Each of production workers can produce two products per hour. How many hours of direct labour must be budgeted to meet production needs? 4. The sales budget for the first three months of the coming year is expected to be $30,000, $50,000 and $70,000 with 50% of each month's sales being on credit. Collections of accounts receivable are scheduled at 40% during the month of sale, 60% is collected in the month following. The total budgeted cash receipts from sales for the second month of the coming year will be: Page 1 of 13

ACE 700 MCCK TEST anplied Buadieting Whar expects to breis the coming year with 2 , 000 anits of a ilpecific prot uer in fimiched grodn 1. Calculate the number of the preducts budeeted far producfinh in the poming yom ke at the becinnint of the coming year and wishesto end the vear with 3,000 bo inh Mnveneory. How mamy kiogramb of Material must the eocruahy purchase barma the vear? 3. Cach of productign workers can produce two products per hour, Hden many hourt ol aticti Isbour meist be budgeted to meet production neted? 4. The sales budaet far the first the ee months of the coming war is expected ts be 530 oudo. 550,000 and $70,003 with 50 of of each month's sales being oe credit. Collecticns ol atcounts feceivable are scheduled at 40 during the month of sale, fohs is bollect med in the month loliowinf The tofal bodegeted cash receigts from sales for the secibid month ok thit coming wear will be