Question
For fiscal year 2019, Renren Printers Inc. would incur total overhead costs of ?1,200,000 and work 40,000 machine hours. During January 2019, the company works
For fiscal year 2019, Renren Printers Inc. would incur total overhead costs of ?1,200,000 and work 40,000 machine hours. During January 2019, the company works exclusively on one job, Job #508. It incurred January costs as follows:
Materials usage:
Direct materials?121,000
Indirect materials7,500?128,500
Labor (1,400 hours):
Direct labor30,800
Indirect labor8,00038,800
Other costs incurred:
Rent11,200
Utilities15,200
Insurance32,100
Depreciation40,000
Maintenance10,800109,300
Total Manufacturing Costs?276,600
Machine hours worked in January are 3,400. Depreciation includes delivery truck's depreciation amounting to ?16,300.
1.How much is the total manufacturing overhead cost of Renren Printers Inc. for Job #508?
a. ?92,200
b. ?276,600
c. ?93,000
d. ?108,500
2.How much is the prime cost for Job #508?
a. ?107,500
b. ?167,300
c. ?131,800
d. ?151,800
3.How much is the conversion cost for Job #508?
a. ?167,300
b. ?151,800
c. ?107,500
d. ?131,800
4.Assuming the company uses an actual cost system, how much is the January cost assigned to Job #508?
a. ?253,800
b. ?260,300
c. ?276,600
d. ?251,800
5.Assuming the company uses normal cost system, how much is the January cost assigned to Job #508?
a. ?276,600
b. ?260,300
c. ?251,800
d. ?253,800
The following account balances and other information for XYZ Company pertain to October operations:
Finished Goods Work in Process Direct Materials Accounts Payable Accrued Payroll October 1October 31 P70,000 $60,000 50,000 ? 10,000 25,000 ? 15,000 10,000 20,000 90,000 Accumulated Depreciation - Factory Equipment 80,000
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