H N M PS. Sample Test Question- Eldorado Manufacturing Company is in the process of developing a plant-wide overhead rate for the assignment of factory overhead costs to jobs Eldorado has two options for cost drivers - direct labor hours (DLH) and machine hours (MIT). Eldorado has compiled data for the past several years that are on the Excel file sheet named "Cost Accounting" On the Excel sheet, answer the following questions in the space provided and highlighted in yellow. Show all of your computations on the Excel a) What is the appropriate cost drive for developing the overhead rate? WHY? b) Company estimates 800 hours of direct labor and $2,000 hours of machine for the next year. Based on the regression results for your chosen cost driver in part compute estimated tobal overhead cost for next year Based on your answers in and "B" develop a plant wide overhead rate for the assignment of overhead cost to jobs. d) The following information pertains to Job 202 which was among the jobs completed in the next year. Direct materials cost $5,000, Direct lab cost $1,000 hours of direct laber wed 200, hours of machine used 350 hours Compute the total cost of manufacturing Job 202 7 8 9 DLH Answers a. What is the best Cost Driver for the application of factory overhead costs to jobs and WHY? FOH $892.296 866.052 971,028 813,564 839,808 708,588 1.049,700 761,076 787,320 944,784 10 11 12 13 14 15 16 17 TA 126,480 102,240 123.600 101,160 113,700 75.960 107.230 83.520 91,080 103 200 MH 71,012 77,467 103,290 68429 69,721 71,012 109,745 69,721 20.366 33.923 5. What is estimated total factory overhead costs for the next year? What is OH rate for the assignment of factory overhead costs to jobs d. What is total cost of Job 2027 2 capta Budgeting FOR PS. FOH PS Sample Test Question Eldorado Manufacturing Company is in the process of developing a plant-wide overhead rate for the set of factory overhead costs to jobs Eldorado has two options for cost drivers - direct labor hours (DLH) and machine heurs (M) Eldorado has compiled data for the past several years that are on the Excele sheet med "Cost Accounting On the Excel sheet, answer the following questions in the space provided and highlighted in yellow Show all of your computations on the Excel a) What is the appropriate cost drive for developing the overhead rate? WHY? b) Company estimates 800 hours of direct bbor and $2,000 hours of machine for the next year. Based on the regression results for your chosen cost driver is part compute estimated total 4 overhead cost for next year 5 c) Based on your answers to and develop a plane wide ovethead rate for the assignment of overhead cost to jobs d) The following information pertains to Job 202 which was among the jobs completed in the next year. Direct materials cost $5.000. Direct Lab cost 54.000 hours of direct laboruset. 200 6 hours of machine used 350 hours. Compute the total cost of manufacturing Job 202 2 FOH DLH MH Answers $892 296 126,480 71,012 a. What is the best Cost Driver for the application of 10 360052 102,240 77.467 factory overhead costs to jobs and WHY? 11 971,028 123.000 T03,290 12 813 564 101 100 68,429 b. What is estimated total factory overhead costs for the 13 839,808 113,700 69,721 next year? 14 108,388 35.960 71,012 15 1,019,760 107.280 109,745 What is OH rate for the assignment of factory overhead 16 361,076 83.520 69,721 costs to jobs? 17 787.320 91,080 70,366 944,784 103,200 83.923 d. What is total cost of Job 2027 tida P. Cast of capital P2 Cantal Captal budget COM PS, FOH H N M PS. Sample Test Question- Eldorado Manufacturing Company is in the process of developing a plant-wide overhead rate for the assignment of factory overhead costs to jobs Eldorado has two options for cost drivers - direct labor hours (DLH) and machine hours (MIT). Eldorado has compiled data for the past several years that are on the Excel file sheet named "Cost Accounting" On the Excel sheet, answer the following questions in the space provided and highlighted in yellow. Show all of your computations on the Excel a) What is the appropriate cost drive for developing the overhead rate? WHY? b) Company estimates 800 hours of direct labor and $2,000 hours of machine for the next year. Based on the regression results for your chosen cost driver in part compute estimated tobal overhead cost for next year Based on your answers in and "B" develop a plant wide overhead rate for the assignment of overhead cost to jobs. d) The following information pertains to Job 202 which was among the jobs completed in the next year. Direct materials cost $5,000, Direct lab cost $1,000 hours of direct laber wed 200, hours of machine used 350 hours Compute the total cost of manufacturing Job 202 7 8 9 DLH Answers a. What is the best Cost Driver for the application of factory overhead costs to jobs and WHY? FOH $892.296 866.052 971,028 813,564 839,808 708,588 1.049,700 761,076 787,320 944,784 10 11 12 13 14 15 16 17 TA 126,480 102,240 123.600 101,160 113,700 75.960 107.230 83.520 91,080 103 200 MH 71,012 77,467 103,290 68429 69,721 71,012 109,745 69,721 20.366 33.923 5. What is estimated total factory overhead costs for the next year? What is OH rate for the assignment of factory overhead costs to jobs d. What is total cost of Job 2027 2 capta Budgeting FOR PS. FOH PS Sample Test Question Eldorado Manufacturing Company is in the process of developing a plant-wide overhead rate for the set of factory overhead costs to jobs Eldorado has two options for cost drivers - direct labor hours (DLH) and machine heurs (M) Eldorado has compiled data for the past several years that are on the Excele sheet med "Cost Accounting On the Excel sheet, answer the following questions in the space provided and highlighted in yellow Show all of your computations on the Excel a) What is the appropriate cost drive for developing the overhead rate? WHY? b) Company estimates 800 hours of direct bbor and $2,000 hours of machine for the next year. Based on the regression results for your chosen cost driver is part compute estimated total 4 overhead cost for next year 5 c) Based on your answers to and develop a plane wide ovethead rate for the assignment of overhead cost to jobs d) The following information pertains to Job 202 which was among the jobs completed in the next year. Direct materials cost $5.000. Direct Lab cost 54.000 hours of direct laboruset. 200 6 hours of machine used 350 hours. Compute the total cost of manufacturing Job 202 2 FOH DLH MH Answers $892 296 126,480 71,012 a. What is the best Cost Driver for the application of 10 360052 102,240 77.467 factory overhead costs to jobs and WHY? 11 971,028 123.000 T03,290 12 813 564 101 100 68,429 b. What is estimated total factory overhead costs for the 13 839,808 113,700 69,721 next year? 14 108,388 35.960 71,012 15 1,019,760 107.280 109,745 What is OH rate for the assignment of factory overhead 16 361,076 83.520 69,721 costs to jobs? 17 787.320 91,080 70,366 944,784 103,200 83.923 d. What is total cost of Job 2027 tida P. Cast of capital P2 Cantal Captal budget COM PS, FOH