chapter 2

Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year:

Direct materials	$	6,000
Direct labor	$	20,000
Rent on factory building	$	15,000
Sales salaries	$	25,000
Depreciation on factory equipment	$	8,000
Indirect labor	$	12,000
Production supervisor's salary	$	15,000

Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be:

The predetermined overhead rate per machine-hour would be closest to:

The predetermined overhead rate for the recently completed year was closest to:

Multiple Choice

$29.39 per machine-hour

$32.40 per machine-hour

$32.81 per machine-hour

$3.01 per machine-hour

Valvano 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 total fixed manufacturing overhead cost of $440,000, variable manufacturing overhead of $2.20 per machine-hour, and 50,000 machine-hours.The estimated total manufacturing overhead is closest to:

Multiple Choice

$440,000

$110,000

$440,002

$550,000

Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below:

Estimates made at the beginning of the year:
Estimated machine-hours		39,000
Estimated variable manufacturing overhead	$	6.76	per machine-hour
Estimated total fixed manufacturing overhead	$	794,430
Actual machine-hours for the year		42,700

The predetermined overhead rate for the recently completed year was closest to:

Multiple Choice

$25.37 per machine-hour

$27.13 per machine-hour

$6.76 per machine-hour

$20.37 per machine-hour

Steele Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. Steele Corporation has provided the following estimated costs for next year:

Direct materials	$	20,000
Direct labor	$	60,000
Sales commissions	$	80,000
Salary of production supervisor	$	40,000
Indirect materials	$	8,000
Advertising expense	$	16,000
Rent on factory equipment	$	20,000

Steele estimates that 10,000 direct labor-hours and 16,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be:

Multiple Choice

$4.25

$8.00

$9.00

$10.25

Laflame 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		70,000
Total fixed manufacturing overhead cost	$	357,000
Variable manufacturing overhead per machine-hour	$	3.90

The estimated total manufacturing overhead is closest to:

Multiple Choice

$273,000

$630,000

$357,004

$357,000

Almaraz Corporation has two manufacturing departments--Forming and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

	Forming		Finishing		Total
Estimated total machine-hours (MHs)		7,000		3,000		10,000
Estimated total fixed manufacturing overhead cost	$	40,600	$	8,100	$	48,700
Estimated variable manufacturing overhead cost per MH	$	1.30	$	2.80

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. That predetermined manufacturing overhead rate is closest to:

Multiple Choice

$6.62

$4.87

$4.10

$7.10

Mundorf Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

	Forming		Assembly		Total
Estimated total machine-hours (MHs)		9,000		1,000		10,000
Estimated total fixed manufacturing overhead cost	$	52,200	$	2,400	$	54,600
Estimated variable manufacturing overhead cost per MH	$	2.00	$	2.10

During the most recent month, the company started and completed two jobs--Job B and Job H. There were no beginning inventories. Data concerning those two jobs follow:

	Job B		Job H
Forming machine-hours		6,100		2,900
Assembly machine-hours		400		600

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The amount of manufacturing overhead applied to Job B is closest to:

Multiple Choice

$48,555

$35,490

$2,988

$45,567

Parido Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

	Casting		Assembly		Total
Estimated total machine-hours (MHs)		8,000		2,000		10,000
Estimated total fixed manufacturing overhead cost	$	44,000	$	4,200	$	48,200
Estimated variable manufacturing overhead cost per MH	$	1.90	$	3.00

During the most recent month, the company started and completed two jobs--Job A and Job H. There were no beginning inventories. Data concerning those two jobs follow:

	Job A		Job H
Casting machine-hours		5,400		2,600
Assembly machine-hours		800		1,200

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The amount of manufacturing overhead applied to Job H is closest to: (Round your intermediate calculations to 2 decimal places.)

Garrison 16e Rechecks 2017-06-28

Multiple Choice

$8,328

$26,372

$18,316

$18,044