Managerial Accounting Chapter 2

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 per machine hour

Mickley Company's plantwide predetermined overhead rate is $14.00 per direct labor-hour and its direct labor wage rate is $17.00 per hour. The following information pertains to Job A-500: Direct Materials: $231 Direct Labor: $153 What is the total manufacturing cost assigned to Job A-500?

$510

What is the predetermined overhead rate for the Packaging Department using direct labor hours as the allocation base? DLH: 62,000 Fixed Manufacturing Overhead: 419,000 Variable manufacturing overhead per DLH: $3.75

$10.51

Mickley Company's plantwide predetermined overhead rate is $14.00 per direct labor-hour and its direct labor wage rate is $17.00 per hour. The following information pertains to Job A-500: Direct Materials: $231 Direct Labor: $153 If Job A-500 consisted of 40 units, what is the unit product cost for this job?

$12.75 per unit

Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as costumes and props. Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars. At the beginning of the year, Yancey made the following estimates: Direct labor-dollars to support all productions: $8,000,000 Fixed overhead cost: $4,800,000 Variable overhead cost per direct labor dollar: $0.05 During the year, Yancey produced a film titled You Can Say That Again that incurred the following costs: Direct materials: $1,259,000 Direct Labor Cost: $2,400,000 Compute the total job cost for this particular film

$5,219,000

Braverman Company has two manufacturing departments—Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $18.00 per direct labor-hour and 110% of direct materials cost, respectively. The company's direct labor wage rate is $16.00 per hour. The following information pertains to Job 700: Direct Materials: Finishing: $410 Fabrication: $60 Direct Labor: Finishing: $128 Fabrication: $48 If Job 700 consists of 15 unites, what is the unit product cost for this job?

$57.07 per unit

What is the estimated total manufacturing overhead in the Assembly Department using machine hours as the allocation base Machine Hours: 68,400 Variable Manufacturing Overhead per MH: $3 Total fixed manufacturing overhead cost: $390,000

$595,200

Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 80,000 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $680,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm's actual overhead cost for the year was $692,000 and its actual total direct labor was 83,000 hours. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job: Direct Materials: $38,000 Direct labor cost: $21,000 DLH worked: 280 What was the total manufacturing cost?

$61,520

What is the term used when a company applies less overhead to production than it actually incurs?

Underapplied

The adjustment for overapplied overhead

decrease COGS and increase net operating income

Compute Harris Fabrics plantwide predetermined overhead rate for the year DLH: 20,000 Estimated Fixed Overhead: $94,000 Variable Manufacturing Overhead per DLH: $2

$6.70 per DLH

Yancey Productions is a film studio that uses a job-order costing system. The company's direct materials consist of items such as costumes and props. Its direct labor includes each film's actors, directors, and extras. The company's overhead costs include items such as utilities, depreciation of equipment, senior management salaries, and wages of maintenance workers. Yancey applies its overhead cost to films based on direct labor-dollars. At the beginning of the year, Yancey made the following estimates: Direct labor-dollars to support all productions: $8,000,000 Fixed overhead cost: $4,800,000 Variable overhead cost per direct labor dollar: $0.05 Compute the predetermined overhead rate

$0.65

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

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $16.00 per direct labor-hour and $12.00 per direct labor-hour, respectively. The company's direct labor wage rate is $20.00 per hour. The following information pertains to Job N-60: Direct Materials (assembly): $340 Direct Materials (testing and packaging): $25 Direct Labor (assembly): $180 Direct Labor (t&p): $40 If Job N-60 consists of 10 units, what is the unit product cost for this job?

$75.30 per unit

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $16.00 per direct labor-hour and $12.00 per direct labor-hour, respectively. The company's direct labor wage rate is $20.00 per hour. The following information pertains to Job N-60: Direct Materials (assembly): $340 Direct Materials (testing and packaging): $25 Direct Labor (assembly): $180 Direct Labor (t&p): $40 What is the total manufacturing cost assigned to Job N-60

$753

Braverman Company has two manufacturing departments—Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $18.00 per direct labor-hour and 110% of direct materials cost, respectively. The company's direct labor wage rate is $16.00 per hour. The following information pertains to Job 700: Direct Materials: Finishing: $410 Fabrication: $60 Direct Labor: Finishing: $128 Fabrication: $48 what is the total manufacturing cost assigned to job 700?

$856

Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 80,000 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $680,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm's actual overhead cost for the year was $692,000 and its actual total direct labor was 83,000 hours. Compute the Predetermined overhead rate

$9 per DLH

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

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

Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period Predetermined Overhead Rate: $23.40 per DLH Estimated total manufacturing overhead: $257,400 Estimated activity level: 11,000 DLH Actual total manufacturing overhead cost: $249,000 Actual total DLH: 10,800

$252,720

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

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