Management Accounting: Job Order Costing Excercise

Jakes Auto Place is car repair shop. The company uses direct labour cost as a basis for applying manufacturing overhead costs to jobs. The company estimates its annual overhead to be $140,000 and it expects employees to work 20,000 hours at an average wage rate of $12 per hour. During the year, employees actually worked 18,000 hours (at a wage rate of $12.25 per hour) and the actual amount spent on overhead was $150,000.

Required:

Use This Question "Jakes Auto Place" to match the following terms with the correct amounts:

Select from these correct options and apply to above

What is Jake's Actual Manufacturing Overhead for the year? What is the correct opening and closing balance (OB&CB) for the T-Account? What is the Budgeted Manufacturing Overhead for the year? What is the Cost Driver used for applying Manufacturing Overhead? What is the total dollar amount of manufacturing overhead applied to jobs during the year? What is the predetermined overhead rate per cost driver unit for the year? Choose... Choose... Finished Goods Inventory $12.25 per cost driver unit $220,500 Cost of Goods Sold $7.00 per cost driver unit $126,000 Machine Hours (MH) $240,000 Direct Labor Hours (DLH) $140,000 $150,000 $0 $12.00 per cost driver unit