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omey Corporation has two production departments, Forming and Finishing. The company uses a2 job- order costing system and computes a predetermined overhead rate in each

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omey Corporation has two production departments, Forming and Finishing. The company uses a2 job- order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Forming Finishing Machinehours Direct laborhours Total fixed manufacturing overhead cost Variable manufacturing overhead per machiheur Variable manufacturing overhead per direct lakbour 18,000 14,000 2,000 8,000 99,000 70,400 S 2.10 $ 3.70 During the current month the company started and finished Job T617. The following data were recorded for this job: Job Forming Finishing Machine hours Direct labor-hours Direct materials Direct labor cost 20 60 $ 940 350 $ 960 1,920 90 30 The total job cost for Job T617 is closest to: (Round your intermediate calculations to 2 decimal places.) A) $3.020 B) $5,604 C) $684 D) $2,584 13) Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply 13) manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year Direct materials Direct labor Rent on factory building Sales salaries Depreciation on factory equipment Indirect labor Production supervisor's salary S 6,000 S 20,000 $ 15,000 $ 25,000 $ 8,000 $ 12,000 $ 15,000 Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be A) $2.79 per direct labor-hour C) $2.50 per direct labor-hour B) $4.00 per direct labor-hour D) $3.00 per direct labor-hour 14) In a job-order costing system that is based on machine-hours, which of the following formulas is14) correct? A) Predetermined overhead rate Actual manufacturing overhead+ Estimated machine-hours B) Predetermined overhead rate Actual manufacturing overhead+ Actual machine-hours C) Predetermined overhead rate Estimated manufacturing overhead Estimated machine-hours D) Predetermined overhead rate Estimated manufacturing overhead Actual machine-hour

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