QUESTION 7

Highland, Inc., an engineering firm, uses a job order costing system to accumulate client-related costs. The predetermined overhead allocation rate is 40% of staff labor cost. The work by engineers is charged to jobs at a rate of $32 per staff labor hour. A recent job for a client used 70 staff labor hours. How much was the total jobcost?

		$3136
		$896
		$28
		$2240

QUESTION 8

Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $750,000 and $550,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 18,000 hours and 7000 hours, respectively. What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.) 4) _______

		$107.14 per machine hour
		$78.57 per machine hour
		$1.36 per labor hour
		$30.56 per labor hour

QUESTION 9

The Assembly Department of ByteSize, Inc., manufacturer of computers, incurred $280,000 in direct material costs and $70,000 in conversion costs. The equivalent units of production for direct materials and conversion costs are 1500 and 600, respectively. The weighted-average method is used. The cost per equivalent unit of production (EUP) for conversion costs is ________. (Round your answer to the nearestcent.)

		$466.67 per EUP
		$186.67 per EUP
		$116.67 per EUP
		$46.67 per EUP

QUESTION 10

The accounts of Delphinia Dreams, Inc. showed the following balances at the beginning of October:

Account	Debit
Raw Materials Inventory	$31,000
Work-in-Process Inventory	44,000
Finished Goods Inventory	54,000
Manufacturing Overhead	20,000

During the month, direct materials amounting to $21,000 and indirect materials amounting to $6000 were issued to production. What is the ending balance in the Work-in-Process Inventory account following these twotransactions?

		$65,000
		$26,000
		$44,000
		$10,000

QUESTION 11

Which of the following will be categorized as a manufacturing overhead cost?

		wages paid to assembly line workers
		depreciation on factory plant and equipment
		cost of direct materials used
		administration charges of showroom

QUESTION 12

Which one of the following companies is most likely to use job order costing?

		a soft drink company
		a law firm
		a surfboard manufacturer
		a gold refinery