PART 1

Kostelnik Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $422,100, variable manufacturing overhead of $2.60 per machine-hour, and 67,000 machine-hours. The company has provided the following data concerning Job A496 which was recently completed:

Number of units in the job		10
Total machine-hours		80
Direct materials	$	800
Direct labor cost	$	1,600

The unit product cost for Job A496 is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

PART 2

During March, Pendergraph Corporation incurred $76,000 of actual Manufacturing Overhead costs. During the same period, the Manufacturing Overhead applied to Work in Process was $78,000.

The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

Multiple Choice

• credit to Work in Process of $76,000

• credit to Manufacturing Overhead of $78,000

• debit to Manufacturing Overhead of $78,000

• debit to Work in Process of $76,000

PART 3

Bulla Corporation has two production departments, Machining and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Departments predetermined overhead rate is based on machine-hours and the Customizing Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

	Machining		Customizing
Machine-hours		21,000		14,000
Direct labor-hours		4,000		2,000
Total fixed manufacturing overhead cost	$	100,800	$	64,400
Variable manufacturing overhead per machine-hour	$	1.00
Variable manufacturing overhead per direct labor-hour			$	2.00

During the current month the company started and finished Job K369. The following data were recorded for this job:

Job K369:	Machining		Customizing
Machine-hours	90		10
Direct labor-hours	10		60

Required:

Calculate the total amount of overhead applied to Job K369 in both departments. (Do not round intermediate calculations.)

PART 4

Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

	Expected Production	Direct Labor-Hours Per Unit	Total Direct Labor-Hours
Product E1	800	4.0	3,200
Product A7	500	2.0	1,000
Total direct labor-hours			4,200

The direct labor rate is $20.80 per DLH. The direct materials cost per unit for each product is given below:

	Direct Materials Cost per Unit
Product E1	$276.00
Product A7	$280.00

The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

		Estimated		Expected Activity
Activity Cost Pools	Activity Measures	Overhead Cost		Product E1	Product A7	Total
Labor-related	DLHs	$	137,100	3,200	1,000	4,200
Machine setups	setups		64,650	900	500	1,400
Order size	MHs		1,011,170	2,500	3,100	5,600
		$	1,212,920

The activity rate for the Order Size activity cost pool under activity-based costing is closest to:

rev: 03_25_2018_QC_CS-119201

Multiple Choice

• $137.10 per MH

• $180.57 per MH

• $288.79 per MH

• $96.07 per MH