Manufacturing cost data for Olsen Company, which uses a job order cost system, are presented below. Direct materials used Direct labor Manufacturing overhead applied Total manufacturing costs Work in process 1/1/14 Total cost of work in process Work in process 12/31/14 Cost of goods manufactured Case A (a) 50,000 37,500 135,650 (b) 213,300 $ 193,200 Case B $ 78,000 120,000 (d) (e) 15,500 (f) 11,800 Case C $ 72,600 (h) (i) 212,600 25,050 (j) (k) 222,000 Instructions Indicate the missing amount for each letter. Assume that in all cases manufacturing over- head is applied on the basis of direct labor cost and the rate is the same. Pronto Kopy Company applies operating overhead to photocopying jobs on the basis of machine hours used. Overhead costs are expected to total $320,000 for the year, and machine usage is estimated at 125,000 hours. For the year, $308,000 of overhead costs are incurred and 130,000 hours are used. Instructions (a) Compute the service overhead rate for the year. (b) What is the amount of under- or overapplied overhead at December 31? (c) Assuming the under- or overapplied overhead for the year is not allocated to inventory accounts, prepare the adjusting entry to assign the amount to cost of jobs finished. Alvarez Company manufactures pizza sauce through two production depart- ments: Cooking and Canning. In each process, materials and conversion costs are in- curred evenly throughout the process. For the month of April, the work in process accounts show the following debits. Beginning work in process Materials Labor Overhead Costs transferred in Instructions Journalize the April transactions. Cooking $-0- 27,000 9,000 31,000 Canning $4,000 10,000 7,000 27,000 56,000 Das Manufacturing Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,200, Work in Process-Cutting $2,900, Work in Process-Assembly $10,600, and Finished Goods $31,000. During July, the fol- lowing transactions occurred. 1. Purchased $64,300 of raw materials on account. 2. Incurred $48,500 of factory labor. (Credit Wages Payable.) 3. Incurred $73,000 of manufacturing overhead; $40,000 was paid and the remainder is unpaid. 4. Requisitioned materials for Cutting $16,400 and Assembly $9,900. 5. Used factory labor for Cutting $27,000 and Assembly $21,500. 6. Applied overhead at the rate of $22 per machine hour. Machine hours were Cutting 1,680 and Assembly 1,720. 7. Transferred goods costing $68,300 from the Cutting Department to the Assembly Department. 8. Transferred goods costing $136,000 from Assembly to Finished Goods. 9. Sold goods costing $154,000 for $205,000 on account. Instructions Journalize the transactions. (Omit explanations.) Celia Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Pre- sented below is information related to the company's operations. Direct labor costs Machine hours Setup hours Standard $60,000 1,500 100 Custom $120,000 1,500 500 Total estimated overhead costs are $342,000. Overhead cost allocated to the machining activity cost pool is $222,000, and $120,000 is allocated to the machine setup activity cost pool. Instructions (a) Compute the overhead rate using the traditional (plantwide) approach. (b) Compute the overhead rates using the activity-based costing approach. (c) Determine the difference in allocation between the two approaches.