ACC 202 - Chapter 2 Prep Video
The management of Blue Ocean Company estimates that 50,000 machine-hours will be required to support the production planned for the year. It also estimates $300,000 of total fixed manufacturing overhead cost for the coming year and $4 of variable manufacturing overhead cost per machine-hour. What is the predetermined overhead rate?
$10.00 per machine hour.
What is the predetermined overhead rate for the Packaging Department?
$10.51 per DLH
Wilson Products uses a plantwide predetermined overhead rate of $10 per direct labor-hour. Direct material and direct labor associated with Job X23 are $4,000 and $1,200, respectively. If Job X23 used 100 direct labor-hours to produce 50 audio controllers, what is this job's unit product cost (per audio controller)?
$124
Spartan Corporation estimates that it will incur $200,000 of total manufacturing overhead cost at an estimated activity level of 10,000 direct labor-hours. What is the amount of manufacturing overhead that would be applied to a job that required 200 direct labor-hours?
$4,000
What is the estimated total manufacturing overhead in the Assembly Department?
$595,200
Wilson Products uses a plantwide predetermined overhead rate of $10 per direct labor-hour. Direct material and direct labor associated with Job X23 are $4,000 and $1,200, respectively. If Job X23 used 100 direct labor-hours, what is the total cost assigned to this job?
$6,200
What is the term used when a company applies less overhead to production than it actually incurs?
Underapplied
The direct materials required to manufacture each unit of product are listed on a ________.
bill of materials
A normal cost system applies overhead to jobs ________.
by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job
The adjustment for overapplied overhead ________.
decreases cost of goods sold and increases net operating income
Companies can improve job cost accuracy by using ________.
multiple predetermined overhead rates
When all of a company's job cost sheets are viewed collectively they form what is known as a ________.
subsidiary ledger
In the cost formula (Y = a + bX) that is used to estimate the total manufacturing overhead cost for a given period, the letter "a" refers to the estimated ________.
total fixed manufacturing overhead cost