managerial accounting chapter 2

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

Manufacturing overhead applied

252,720

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

Predetermined overhead rate

6.70 per DLH

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

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 Packing Department?

$10.51 per DLH

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

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