QUESTION 11

1. The following costs are allocated to job Q. Calculate the product cost of job Q as would be reported externally on the financial statements.

   Direct materials	$425,000
   Direct labor	$1,012,500
   Variable MOH	$80,000
   Fixed MOH	$150,000
   Selling costs	$245,000
   General and administrative costs	$25,000

   		$1,517,500
   		$1,667,500
   		$1,912,500
   		$1,937,500

2. QUESTION 12

3. The following information is available pertaining to Iris Division that uses a traditional (plantwide) overhead rate based on direct labor hours:

   	Total
   Overhead	$210,000
   Direct labor-hours	170,000
   Machine-hours	400,000

   Job 101 used the following resources

   Direct costs	$10,000
   Direct Labor-hours	450
   Machine-hours	300
   Units produced	500

   What are the total overhead costs assigned to Job 101?

   		$556
   		$1.24
   		$466.67
   		$18

4. QUESTION 16

5. Why do we allocate overhead costs across different products?

   		Because external reporting requires it for inventory costing purposes.
   		So that managers can make good decisions.
   		To ensure that resources are used efficiently.
   		All of the other answers