Question number 3:

Cooper's Company manufactures custom engines for use in the lawn and garden equipment industry. The company applies manufacturing overhead based on machine hours. Selected data for costs incurred for Job 798 are as follows:

Direct materials used.$4,200

Direct labor hours worked. 280

Machine hours used 425

Direct rate per hour $18

Predetermined overhead rates based on machine hours $20

What is the total manufacturing cost of Job 798?

1. $17,740
2. $ 5,040
3. $ 8,500
4. $ 4,905

Question number 4:

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on direct labor hours to apply manufacturing overhead to jobs. Selected data about the company's operations follows:

By how much was manufacturing overhead overapplied or underapplied for the year?

1. $50,000 underapplied
2. $160,000 overapplied
3. $100,000 underapplied
4. $ 50,000 overapplied

Actual manufacturing overhead cost Estimated manufacturing overhead cost Estimated directlabor cost Estimated direct labor hours Actual direct labor hours Estimated machine hours Actual machine hours $500,000 $550,000 $175,000 50,000 60,000 40,000 35,000