Hi,

Can somebody help me to solve the questions.

Use the following information to answer the next three questions.

Estimated manufacturing overhead for the year

$240,000

Actual manufacturing overhead for the year

$210,000

Estimated direct labour hours for the year

6,000

Actual direct labour hours for the year

5,000

The following information pertains to the month of October:

Job No. 73

Job No. 77

Job No. 79

Direct materials

$2,000

$2,500

$3,000

Direct labour

$3,500

$4,000

$7,500

Direct labour hours

160

200

300

1.The predetermined overhead rate per direct labour hour would be:

A.$35

B.$40

C.$42

D.$48

E.None of the above

2.Assume the predetermined overhead rate is $30 per direct labour hour. Overhead applied to Job No. 73 would be:

A.$4,800

B.$6,400

C.$10,500

D.$15,000

E.None of the above

3.Assume the predetermined overhead rate is $30 per direct labour hour. Overhead applied during the month would be:

A.$15,000

B.$19,800

C.$12,500

D.$42,300

E.None of the above

Use the following information to answer the next three questions.

Job No. 1

Job No. 2

Job. No. 3

Direct materials

$25,000

$18,000

$32,000

Direct labour

$40,000

$53,000

$64,000

Machine hours

1,000

800

1,200

A predetermined overhead rate of $20 per machine hour is used to apply overhead.

All three jobs were started during September. Job No. 2 and Job No. 3 were completed during the month and Job No. 3 was sold on September 20. There were no beginning inventory balances.

4.Ending work in process inventory for September would be:

A.$0

B.$65,000

C.$85,000

D.$172,000

E.None of the above

5.Ending finished goods inventory for September would be:

A.$71,000

B.$87,000

C.$167,000

D.$207,000

E.None of the above

6.Cost of goods sold for September would be:

A.$0

B.$88,000

C.$96,000

D.$120,000

E.None of the above

7.

9.Canberra Company uses a predetermined overhead rate to assign overhead to jobs. Because Canberra Company's production is machine dominated, overhead is applied on the basis of machine hours. The expected overhead for the year was $2.5 million, and the practical level of activity is 50,000 machine hours.

During the year, Canberra Company used 48,000 machine hours and incurred actual overhead costs of $2 million. Canberra Company also had the following balances of applied overhead in its accounts:

$

Work in Progress

460,000

Cost of Goods Sold

1,440,000

Finished Goods

500,000

The predetermined overhead rate for Canberra Company is:

A.$50.00 per machine hour

B.$52.08 per machine hour

C.$41.67 per machine hour

D.$52.00 per machine hour

E.None of the above

10.Broome Ltd Industries uses a job costing system. The following data are available for 2018:

Budgeted:

Overhead

$675,000

Machine hours

25,000

Direct labour hours

75,000

Actual:

Overhead

$681,000

Machine hours

25,050

Direct labour hours

75,700

Number of units

400,000

Overhead is applied on the basis of direct labour hours.

Was overhead over or underapplied and by how much?

A.$300 underapplied

B.$300 overapplied

C.$6,000 underapplied

D.$6,000 overapplied

E.None of the above

Use the following information pertaining to Hobart Ltd to answer the next two questions.

Hobart Limited maintains a job costing system. Manufacturing overhead is applied to jobs at a uniform, predetermined rate of $0.40 per direct labour dollar. The following information is provided.

Work in progress at 1 January:

Job No

Material

Labour

Overhead

104

$2,000

$3,000

$1,200

Transactions for the month of January were as follows:

i.

Expenses incurred:

$

Factory salaries - indirect

5,000

Plant depreciation

2,000

Maintenance of machines

2,000

ii.

Labour charges to jobs:

$

Job No. 104

14,000

Job No. 105

8,000

iii.

Raw materials issued:

$

Job No. 104

14,000

Job No. 105

14,000

iv.

Job No. 104 was the only one completed during the month of January.

11.What is the total cost of Job No. 104?

A.$28,000

B.$33,600

C.$39,800

D.$30,000

E.None of the above

12.What is the total cost of Job No. 105?

A.$22,000

B.$25,200

C.$31,000

D.None of the above

Use the following information to answer the next three questions.

Estimated manufacturing overhead for the year

$240,000

Actual manufacturing overhead for the year

$210,000

Estimated direct labour hours for the year

60,000

Actual direct labour hours for the year

50,000

The following information pertains to the month of October:

Job No. 73

Job No. 77

Job No. 79

Direct materials

$2,000

$2,500

$3,000

Direct labour

$3,500

$4,000

$7,500

Direct labour hours

160

200

300

Jobs 73 and 77 were completed during the year.

13.Overhead applied to Job No. 73 would be:

A.$672

B.$640

C.$560

D.None of the above

14.Cost of Job No. 77 is:

A.$7,300

B.$6,500

C.$6,000

D.None of the above

15.Closing Work In Process was:

A.$11,700

B.$10,500

C.$11,550

D.None of the above

16.

Job No. 1

Job No. 2

Job. No. 3

Direct materials

$25,000

$18,000

$32,000

Direct labour

$40,000

$53,000

$64,000

Machine hours

1,000

800

1,200

A predetermined overhead rate of $20 per machine hour is used to apply overhead.

All three jobs were started during September. Job No. 2 and Job No. 3 were completed during the month and Job No. 3 was sold on September 20. There were no beginning inventory balances.

16.Cost of goods sold for September would be:

A.$156,000

B.$97,200

C.$120,000

D.None of the above

Use the following information pertaining to Perth Ltd to answer the next three questions.

Perth Ltd has identified the following overhead costs and cost drivers for next year.

Overhead Item

Expected Cost

$

Cost Driver

Expected Quantity

Setup costs

50,000

Number of setups

250

Ordering costs

20,000

Number of orders

1,600

Maintenance

100,000

Machine hours

2,000

Power

10,000

Kilowatt hours

40,000

180,000

The following are two of the jobs completed during the year.

Job 1000

Job 1001

Direct materials

$750

$1,000

Direct labour

$700

$1,200

Units completed

100

160

Direct labour hours

50

80

Number of setups

1

4

Number of orders

4

5

Machines hours

20

25

Kilowatt hours

30

50

The company's normal activity is 2,000 direct labour hours.

17.If direct labour hours are used to assign overhead, the total cost of Job 1000 would be:

A.$5,200

B.$5,250

C.$5,700

D.$5,950

E.None of the above

18.If the number of setups is used to assign setup costs, the amount of setup costs assigned to Job 1000 would be:

A.$200

B.$250

C.$400

D.$420

E.None of the above

19.If the four activity-based cost drivers are used to allocate overhead costs, total overhead allocated to Job 1000 would be:

A.$1,207.50

B.$1,257.50

C.$1,383.25

D.$1,407.50

E.None of the above

Use the following information pertains to Brisbane Manufacturing Ltd to answer the next three questions.

Brisbane Manufacturing Ltd uses an activity-based cost system. The company produces Model A and Model D. Information relating to the two products is given below.

Model A

Model D

Units produced

10,000

20,000

Machine hours

4,000

5,000

Direct labour hours

7,000

8,000

Engineering labour (hours)

500

700

Setups

20

30

The following costs are reported:

$

Engineering

24,000

Setups

50,000

Machine-related overhead

72,000

20.The pool rate for engineering is:

A.$20

B.$25

C.$28.50

D.$34.29

E.None of the above

21.Setup costs assigned to Model A are:

A.$18,000

B.$20,000

C.$25,000

D.$30,000

E.None of the above

22.Machine-related overhead costs assigned to Model D are:

A.$40,000

B.$54,400

C.$56,000

D.$59,200

E.None of the above

Use the following information pertains to Melbourne Manufacturing Ltd to answer the next four questions.

Melbourne Manufacturing Ltd has four categories of overhead. The four categories and expected overhead costs for each category for next year are listed below.

$

Maintenance

30,000

Materials Handling

4,500

Setups

4,000

Inspection

15,000

53,500

Currently, overhead is applied using a predetermined overhead rate based upon budgeted direct labour hours. 10,000 direct labour hours are budgeted for next year.

The company has been asked to submit a bid for a proposed job. The plant manager feels that obtaining this job would result in new business in future years. Usually bids are based upon full manufacturing cost plus 15%.

Estimates for the proposed job are as follows:

Direct materials

$500

Direct labour (300 hours)

$1,500

Number of materials moves

2

Number of inspections

3

Number of setups

4

Number of machine hours

40

In the past, full manufacturing cost has been calculated by allocating overhead using a volume-based cost driver, direct labour hours. The plant manager has heard of a new way of applying overhead that uses cost pools and cost drivers.

Expected activity for the four activity-based cost drivers that would be used are:

Machine hours

2,500

Material moves

300

Setups

100

Quality inspections

500

23.If direct labour hours are used as the cost driver, the amount of overhead allocated to the proposed job would be:

A.$1,275

B.$1,350

C.$1,605

D.$1,800

E.None of the above

24.If direct labour hours are used as the cost driver, the total cost of the proposed job would be:

A.$3,800

B.$3,605

C.$2,850

D.$2,775

E.None of the above

25.If material moves are used to assign material handling costs, the amount of material handling costs allocated to the proposed job would be:

A.$10.00

B.$24.50

C.$28.25

D.$30.00

E.None of the above

26.If the number of inspections is used to assign inspection costs, the amount of inspection costs allocated to the proposed job would be:

A.$90

B.$150

C.$165

D.$450

E.None of the above

27.If the activity-based cost drivers are used to assign overhead, the total cost of the proposed job would be:

A.$2,160

B.$2,200

C.$2,760

D.$3,036

E.None of the above

28.Hobart Kitchens Ltd have decided to develop an activity-based costing system. Shown below is each activity, its cost and the activity driver used to assign these costs to products.

Expected

Cost

Expected Quantity

Activity

Cost

Driver

Process orders

$37 800

No. orders

1 500 orders

Make patterns

$140 000

No. items made

8 000 items

Carving

$248 000

No. hours taken

4 000 hours

Finishing

$186 200

No. items made

8 000 items

Under an activity-based costing system, what is the activity cost per unit of activity driver for making patterns?

A. $4.73

B. $10.00

C. $17.50

D. $21.50

E.None of the above

Use the following information pertains to Adelaide Ltd to answer the next four questions.

Adelaide Ltd is a manufacturer of a range of natural confectionary products. The following is a list of activities, costs and quantities of activity drivers for a number of activities that occur in the factory.

Activity

Expected

cost

Cost

driver

Expected Quantity

Measure ingredients

$7 000

batches

500 batches

Load machines

$9 200

No. batches

500 batches

Supervise mixing

$36 000

No. machine hours

4 500 MH

Pack into containers

$24 000

No. litres

600 000 litres

Load into freezers

$10 500

No. cartons

350 000 cartons

29.Under an activity-based costing system, what is the activity cost per unit of activity driver for measuring ingredients?

A. $12.90

B. $15.00

C. $13.80

D. $14.00

E.None of the above

30.Under an activity-based system, what is the activity cost per unit of activity division for packing into containers?

A. $0.06

B. $0.05

C. $0.02

D. $0.04

E. None of the above