QUESTION 6

Mitchell' s Softball Gloves Company estimated the following at the beginning of the year:

	Assembly Department	Testing Department	Total
Overhead	$570,000	$130,000	$700,000
Direct Labor Hours	142,500	32,500	175,000
Machine Hours	32,000	65,000	97,000

Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department. Actual data for August is as follows:

	Assembly Department	Testing Department	Total
Overhead	$42,000	$12,000	$54,000
Direct Labor Hours	13,500	2,430	15,930
Machine Hours	4,020	11,000	15,020

Mitchell decides to continue using departmental overhead rates. What are the predetermined rates for the Assembly and Testing departments respectively?

		Assembly: $4 per direct labor hour; Testing: $2 per machine hour
		Assembly: $2 per direct labor hour; Testing: $4 per machine hour
		Assembly: $4 per direct labor hour; Testing: $4 per direct labor hour
		Assembly: $7.22 per machine hour; Testing: $7.22 per machine hour
		none of these

3 points

QUESTION 7

Mitchell' s Softball Gloves Company estimated the following at the beginning of the year:

	Assembly Department	Testing Department	Total
Overhead	$570,000	$130,000	$700,000
Direct Labor Hours	142,500	32,500	175,000
Machine Hours	32,000	65,000	97,000

Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department. Actual data for August is as follows:

	Assembly Department	Testing Department	Total
Overhead	$42,000	$12,000	$54,000
Direct Labor Hours	13,500	2,430	15,930
Machine Hours	4,020	11,000	15,020

Mitchell decides to continue using departmental overhead rates. If a job spends 4 hours in assembly and 3 hours in testing, what is the amount of overhead charged to the job?

		$22
		$20
		$28
		$50.54
		none of these

3 points

QUESTION 8

Bryant Company designs and builds fancy dining room tables for individual customers. On July 1, there were two jobs in process: Job 391 with a beginning balance of $21,700 and Job 392 with a beginning balance of $8,790. Overhead costs are applied by using a rate of 70% of direct labor costs. Both jobs are unfinished on July 31. Data on July costs for both jobs are as follows:

	Job 391	Job 392
Direct Materials	$5,100	$ 9,200
Direct Labor Cost	2,700	11,000

What is the total of the Work-in-Process Account at July 31?

		$28,000
		$58,490
		$68,080
		$37,590
		none of these

4 points

QUESTION 9

Wrights Construction builds custom houses for individual buyers. On June 1, it had one job started with a beginning Work-in-Process of $56,000. During June the job was finished and sold. Direct labor for the job in June was $75,000 and direct materials used were $57,000. Overhead is computed at a rate of 65% of direct labor. There is a markup of 35% on all sales. What was the selling price of the house?

		$319,612.50
		$236,750
		$82,862.5
		$272,600
		262,087.5

3 points

QUESTION 10

Laudermilk produces dairy equipment. Most of its jobs have a number of units per job. The company has two different departments through which all jobs pass. Overhead is applied using a plantwide rate of $13 per direct labor hour. Direct Labor wages average $8 an hour. Data for Job #3 for the year is:

Direct Materials		$40,000
Direct Labor Costs
	Dept. A	60,000
	Dept. B	12,000
Machine hours used
	Dept. A	200
	Dept. B	2,400
Units Produced		20,000

Compute the total cost of Job #3.

		$229,000
		$112,000
		$134,600
		$145,800
		$231,600

3 points

QUESTION 11

Laudermilk produces dairy equipment. Most of its jobs have a number of units per job. The company has two different departments through which all jobs pass. Overhead is applied using a plantwide rate of $13 per direct labor hour. Direct Labor wages average $8 an hour. Data for Job #3 for the year is:

Direct Materials		$40,000
Direct Labor Costs
	Dept. A	60,000
	Dept. B	12,000
Machine hours used
	Dept. A	200
	Dept. B	2,400
Units Produced		20,000

Compute the cost per unit.

		$11.45
		$5.60
		$5.73
		$11.58
		none of these