The following information is available pertaining to the Production Division of Clarkson Enterprises:

Assembly Dept. Finishing Dept. Total

Overhead costs $10,000 $30,000 $40,000

Direct labor hours 8,000 2,000 10,000

Machine hours 3,000 5,000 8,000

Production information pertaining to Job 4X5:

Assembly Dept. Finishing Dept. Total

Prime costs $2,380 $-0- $2,380

Direct labor hours 280 -0- 280

Machine hours -0- -0- -0-

Units produced 500 -0- 500

1. Refer to Figure 5-7. What is the plantwide overhead rate based on direct labor hours?

a. $1.00

b. $1.50

c. $3.00

d. $4.00

2. Refer to Figure 5-7. Using the plantwide overhead rate based on direct labor hours what is the cost of Job 4X5?

a. $1,250

b. $2,000

c. $8,750

d. $3,500

3. Refer to Figure 5-7. What is the overhead rate for the Finishing Department based on machine hours?

a. $6.00

b. $4.00

c. $2.25

d. $1.50

4. Refer to Figure 5-7. What are the total overhead costs assigned to Job 4X5, assuming the Assembly and Finishing Departments use direct labor hours and machine hours for their bases, respectively?

a. $62.50

b. $250.00

c. $350.00

d. $2,380.00

Figure 5-4

Lanyard Company uses a job-order costing system to account for product costs. The following information pertains to 2014:

Materials placed into production $170,000

Indirect labor 40,000

Direct labor (10,000 hours) 160,000

Depreciation of factory building 60,000

Other factory overhead 100,000

Increase in work-in-process inventory 20,000

Factory overhead rate is $20 per direct labor hour.

5. Refer to Figure 5-4. What is the total amount credited to Materials Inventory for Lanyard in 2014?

a. $480,000

b. $170,000

c. $140,000

d. $110,000

6. Refer to Figure 5-4. What is the total amount debited to Finished Goods Inventory in 2011?

a. $490,000

b. $510,000

c. $450,000

d. $550,000