Question
Question 1 Stoke Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in
Question 1
Stoke Corporation has two production departments, Forming and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Departments predetermined overhead rate is based on machine-hours and the Assembly Departments predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
| Forming | Assembly | |||||
| Machine-hours | 20,000 | 15,000 | ||||
| Direct labor-hours | 2,000 | 7,000 | ||||
| Total fixed manufacturing overhead cost | $ | 138,000 | $ | 58,100 | ||
| Variable manufacturing overhead per machine-hour | $ | 2.30 | ||||
| Variable manufacturing overhead per direct labor-hour | $ | 3.00 | ||||
During the current month the company started and finished Job A460. The following data were recorded for this job:
| Job A460: | Forming | Assembly | ||||
| Machine-hours | 80 | 10 | ||||
| Direct labor-hours | 30 | 50 | ||||
The amount of overhead applied in the Assembly Department to Job A460 is closest to: (Round your intermediate calculations to 2 decimal places.)
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$565.00
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$79,100.00
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$150.00
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$415.00
Question 2
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling 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:
| Milling | Customizing | |||||
| Machine-hours | 18,000 | 13,000 | ||||
| Direct labor-hours | 4,000 | 7,000 | ||||
| Total fixed manufacturing overhead cost | $ | 113,400 | $ | 64,400 | ||
| Variable manufacturing overhead per machine-hour | $ | 1.60 | ||||
| Variable manufacturing overhead per direct labor-hour | $ | 3.90 | ||||
During the current month the company started and finished Job A319. The following data were recorded for this job:
| Job A319: | Milling | Customizing | ||||
| Machine-hours | 60 | 10 | ||||
| Direct labor-hours | 20 | 60 | ||||
| Direct materials | $ | 655 | $ | 305 | ||
| Direct labor cost | $ | 400 | $ | 1,200 | ||
The amount of overhead applied in the Customizing Department to Job A319 is closest to: (Round your intermediate calculations to 2 decimal places.)
Multiple Choice
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$234.00
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$786.00
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$91,700.00
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$552.00
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Study Guide For Use With Managerial Accounting
Authors: Ronald M. Copeland, Paul E. Dascher, Jerry R. Strawser, Robert H. Strawser
1st Edition
0873937651, 978-0873937658
