Question
Pinnacle Corp. budgeted $258,700 of overhead cost for the current year. Actual overhead costs for the year were $240,730. Pinnacle's plantwide allocation base, machine hours,
Pinnacle Corp. budgeted $258,700 of overhead cost for the current year. Actual overhead costs for the year were $240,730. Pinnacle's plantwide allocation base, machine hours, was budgeted at 54,860 hours. Actual machine hours were 55,670.
A total of 108,360 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is:
a. $4.39 per machine hour b. $4.72 per machine hour c. $2.39 per machine hour d. $2.22 per machine hour
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Selected accounts with a credit amount omitted are as follows
Work in Process | |||||
Apr. 1 | Balance | 6,500 | Apr. 30 | Goods finished | X |
30 | Direct materials | 55,700 | |||
30 | Direct labor | 190,500 | |||
30 | Factory overhead | 57,150 |
Finished Goods | |||||
Apr. 1 | Balance | 12,000 | |||
30 | Goods finished | 309,600 |
What was the balance of Work in Process as of April 30?
a. $250
b. $309,600
c. $12,000
d. $57,150
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When Job 117 was completed, direct materials totaled $28,160; direct labor, $33,958; and factory overhead, $20,707. A total of 3,313 units were produced at a per-unit cost of
a. $82,825
b. $3,313
c. $25
d. $62,118
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Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.
Activity Cost | Activity Base | ||
Procurement | $344,000 | Number of purchase orders | |
Scheduling | 245,500 | Number of production orders | |
Materials handling | 429,500 | Number of moves | |
Product development | 727,000 | Number of engineering changes | |
Production | 1,445,000 | Machine hours |
Number of Purchase Orders | Number of Production Orders | Number of Moves | Number of Engineering Changes | Machine Hours | Number of Units | |
Disk drives | 4,060 | 390 | 1,230 | 11 | 2,200 | 2,000 |
Tape drives | 1,500 | 135 | 530 | 5 | 8,300 | 4,500 |
Wire drives | 12,400 | 910 | 3,500 | 28 | 11,600 | 2,300 |
The activity rate for the procurement activity cost pool is
a. $65.38 per purchase order
b. $239.72 per purchase order
c. $171.08 per purchase order
d. $19.15 per purchase order
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Selected accounts with amounts omitted are as follows
Work in Process | |||||
Aug. 1 | Balance | 277,750 | Aug. 31 | Goods finished | 153,780 |
31 | Direct materials | X | |||
31 | Direct labor | 35,400 | |||
31 | Factory overhead | X |
Factory Overhead | |||||
Aug. 1 31 | Costs incurred | 96,990 | Aug. 1 | Balance | 15,200 |
31 | Applied | ||||
(30% of direct labor cost) | X |
If the balance of Work in Process on August 31 is $194,620, what was the amount debited to Work in Process for direct materials in August?
a. $353,990
b. $507,770
c. $118,530
d. $24,630
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