Heading 2 Heading Paragraph Styles 9) Claybrooks 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) 3, 000 2, 000 5, 000 Estimated total fixed manufacturing $ 17, 700 $ 5, 800 $ 23, 500 overhead cost Estimated variable manufacturing $ 1. 50 $ 2. 20 overhead cost per MH Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. The departmental predetermined overhead rate in the Assembly Department is closest to: A) $2.90 B) $6.48 C) $5.10 D) $2.20 10) Janicki Corporation has two manufacturing departments--Machining and Customizing The company used the following data at the beginning of the year to calculate predetermined overhead rates; Q 99+ w O PStyles Machining Customizing Total Estimated total machine-hours (MHS) 1, 000 9, 000 10,000 Estimated total fixed manufacturing $ 4, 800 $ 23, 400 $ 28,200 overhead cost Estimated variable manufacturing $ 1. 10 $ 2.50 overhead cost per MH During the most recent month, the company started and completed two jobs--Job A and Job J. There were no beginning inventories. Data concerning those two jobs follow: Job A Job J Direct materials $ 12, 000 $ 7, 700 Direct labor cost $ 20, 700 $ 6, 400 Machining machine-hours 700 300 Customizing machine-hours 3, 600 5, 400 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours and uses a markup of 50% on manufacturing cost to establish selling prices. The calculated selling price for Job J is closest to: (Round your intermediate calculations to 2 decimal places.) A) $71,983 B) $65,439 C) $43,626 D) $21,813 Q 99+ O 9 P W11) Which of the following statements is true? 1. When raw materials are purchased, they are recorded as an asset. 2. The absorption cost approach provides for the absorption of all manufacturing costs, fixed and variable, into units of product. A) Only statement I is true. B) Only statement II is true. C) Both statements I and II are true. D) Neither statement is true. 12) Which of the following statements is true? 1. A credit balance in the Manufacturing Overhead account at the end of the year means that manufacturing overhead was overapplied. 2. If the actual manufacturing overhead cost for a period exceeds the manufacturing overhead cost applied, then manufacturing overhead would be considered to be overapplied. 3. The entire difference between the actual manufacturing overhead cost for a period and the applied manufacturing overhead cost is typically closed to the Work In Process account. A) Only statement I is true. B) Only statement II is true. C) Only statement III is true. D) None of the statements are true. Q 99 O PParagraph Styles 13) Held Incorporated has provided the following data for the month of June. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Work In Finished Cost of Total Process Goods Goods Sold Direct materials $ 5, 890 $14, 070 $ 95, 760 $115, 720 Direct labor 9 , 680 20, 100 136, 800 166, 580 Manufacturing overhead 5 , 880 10, 080 68 , 040 84, 000 applied Total $21, 450 $44, 250 $300, 600 $366, 300 Manufacturing overhead for the month was overapplied by $1,000. The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for June would include the following: A) credit to Work in Process of $21,450 B) credit to Work in Process of $70 C) debit to Work in Process of $21,450 D) debit to Work in Process of $70 Chavez Corporation reported the following data for the month of July: Inventories: Beginning Ending Raw materials $27, 000 $30, 000 Work in process $16, 000 $17.000 Finished goods $32, 000 $47,000 Q 99 OAdditional information: Raw materials purchases $66, 000 Direct labor cost $91, 000 Manufacturing overhead cost incurred $59, 000 Indirect materials included in manufacturing overhead cost $ 8,000 incurred Manufacturing overhead cost applied to Work in Process $58,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The direct materials cost for July is: A) $55,000 B) $69,000 C) $63,000 D) $66,000 ESSAY. Write your answer in the space provided or on a separate sheet of paper. 15) Learned Corporation has provided the following information: Cost per Cost per Unit Period $ 5.20 Direct materials $ 3.85 Direct labor 991 Q Oaragraph Styles Variable manufacturing overhead $ 1.35 Fixed manufacturing overhead $ 27,000 Sales commissions $ 0. 50 Variable administrative expense $ 0 . 40 Fixed selling and administrative expense $ 9, 000 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units? c. If the selling price is $22.40 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.) d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 7,000 units are produced, what is the total amount of indirect manufacturing costs incurred? Q O 9 PParagraph Styles 16) Dacosta Corporation had only one job in process on May 1. The job had been charged with $1,800 of direct materials, $6,966 of direct labor, and $9,936 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $18.40 per direct labor-hour. During May, the following activity was recorded: Raw materials (all direct materials) : Beginning balance $ 8, 500 Purchased during the month $38, 000 Used in production $39, 300 Labor: Direct labor-hours worked during the month 1 , 900 Direct labor cost incurred $24, 510 Actual manufacturing overhead costs incurred $33, 300 Inventories: Raw materials, May 30 ? Work in process, May 30 $16, 937 Work in process inventory on May 30 contains $3,741 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. The balance in the raw materials inventory account on May 30 was: A) $7,200 B) $1,300 C) $29,500 D) $30,800 9 Q O P