Smorgasbord Inc. estimated the following for 2012:

	Cutting	Finishing
	Dept.	Dept.
Indirect materials	$ 66,000	$ 80,000
Indirect labor	34,000	40,000
Rent	150,000	115,000
Depreciation	70,000	60,000
Insurance	40,000	25,000
Machine hours	90,000	80,000
Labor hours	60,000	60,000

The overhead rate for the cutting department is determined on the basis of machine hours. Using the data above, what is the predetermined overhead rate for the cutting department?

$4.50

$2.40

$4.00

$6.00

Work-in-Process Inventory for Wendall Productions has a balance of $2,600 at the end of the accounting period. The cost summaries for the uncompleted jobs showed direct materials of $1,200 and direct labor of $800. Wendall applies manufacturing overhead on the basis of direct labor cost. The company's predetermined overhead rate is:

$1.00 per direct labor dollar

$0.65 per direct labor dollar

$0.50 per direct labor dollar

$0.75 per direct labor dollar

Assuming that actual manufacturing overhead costs for Colorado Iron Company are $10,000 for cutting; $14,000 for shaping; and $6,000 for finishing; and applied manufacturing overhead is $11,400 for cutting; $11,000 for shaping; and $6,600 for finishing, what is the amount of over- or underapplied overhead?

$1,000 underapplied

$400 underapplied

$400 overapplied

$1,000 overapplied

Conversion costs consist of:

Direct labor and overhead

Direct materials and direct labor

Direct materials, direct labor, and overhead

Direct materials and overhead

Berry Corporation began making scented body lotion in March of the current year. There is only one process in the manufacture of this product, and in March the costs of production were $24,600 for materials and $35,730 for processing. During the month, 12,300 pints of materials were placed in production. At the end of March, 1,250 pints of materials were still being processed and were 70% complete. Assume that all materials were added at the beginning of the production process. Given this information, the number of equivalent units for the conversion costs is:

875

11,050

12,300

11,925

During January, the Farnell Furniture Company produced 30,000 high-quality furniture sets: 7,500 from the January 1 work-in-process inventory and 22,500 from units started during the month. The January 30 work-in-process inventory consisted of 7,000 units 50% complete as to direct materials and 40% finished as to conversion costs. The January 1 inventory of work-in-process was 50% finished as to direct materials and conversion costs. The number of units started in production during January was:

22,000

29,500

30,000

22,500

In production, 100 units in a process that are 30% complete are referred to as:

70 equivalent units of production

100 equivalent units of production

130 equivalent units of production

30 equivalent units of production

A department adds all raw materials at the very beginning of the process and incurs conversion costs evenly throughout the process. For the month of March, there were no units in the beginning work-in-process inventory; 5,000 units were started in March, and there were 1,500 units that were 60% complete in the ending work-in-process inventory at the end of March. What were the equivalent units of production for conversion costs for the month of March?

3,500 equivalent units

4,100 equivalent units

4,400 equivalent units

5,000 equivalent units

Hopple Company uses a FIFO process costing system. Costs in beginning inventory include $9,600 for materials and $8,000 for conversion costs. The following costs were incurred in January for the Dyeing Department:

Direct materials	$48,000
Direct labor	60,000
Factory overhead	44,000

Material is added at the beginning of the process and conversion costs are incurred evenly throughout the process. If equivalent units are 3,200 for materials and 2,800 for conversion, what is the total product cost per unit for a unit completed during January?

$18

$37

$52

$30

Exhibit 16-4

Timothy Company uses FIFO process costing. Material is added initially while conversion is added evenly throughout the process. The following information is available for the month just ended:

Beginning work-in-process	7,000 units, 40% complete
Started into process	86,000 units
Ending work-in-process	6,000 units, 50% complete

Refer to Exhibit 16-4. How many equivalent units of conversion will be used in calculating product cost per unit?

88,800

85,800

87,200

86,000