Managerial Accounting

Sargent Corporation applies overhead cost to jobs on the basis of 50% of direct labor cost. If Job 210 shows $10,450 of manufacturing overhead cost applied, how much was the direct labor cost on the job?

$20,900= 10450 x 2

Property taxes are an example of a cost that would be considered to be:

Facility-level.

Precision Corporation used a predetermined overhead rate last year of $3 per direct labor-hour, based on an estimate of 24,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were: Actual manufacturing overhead cost incurred$84,000Actual direct labor-hours worked 27,000 The overapplied or underapplied manufacturing overhead for the year was:

$3,000 underapplied; 24,000 x 3 = 72,000 -84000 =

Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: EstimatedExpected ActivityActivity Cost PoolsActivity MeasuresOverhead CostProduct Z9Product N0TotalLabor-relatedDLHs$329,0186,9003,50010,400Product testingtests 48,2476507501,400Order sizeMHs 473,6084,5004,8009,300 $850,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to: rev: 03_25_2018_QC_CS-119201

$31.64 per DLH

The following costs were incurred in May: Direct materials$41,400 Direct labor$29,800 Manufacturing overhead$24,300 Selling expenses$19,700 Administrative expenses$34,500 Conversion costs during the month totaled:

$54,100, DL + MO = 29800 + 24300

Dake Corporation's relevant range of activity is 4,500 units to 8,500 units. When it produces and sells 6,500 units, its average costs per unit are as follows: Average Cost per UnitDirect materials$6.40Direct labor$3.50Variable manufacturing overhead$2.00Fixed manufacturing overhead$2.20Fixed selling expense$0.90Fixed administrative expense$0.60Sales commissions$0.70Variable administrative expense$0.60 If 5,500 units are produced, the total amount of direct manufacturing cost incurred is closest to:

$54,450 = (6.40 + 3.50) x 5500

Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below: Estimated machine-hours 72,800 Estimated variable manufacturing overhead$3.00per machine-hourEstimated total fixed manufacturing overhead$838,730 The predetermined overhead rate for the recently completed year was closest to:

$14.52 per machine-hour= (72800*3.3) + 838730 / 72800

In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the "Total raw materials available" is computed by adding together the "Beginning raw materials inventory" and:

Purchases of raw materials

The term that refers to costs incurred in the past that are not relevant to a decision is:

sunk cost.

Tirri Corporation has provided the following information: Cost per UnitCost per PeriodDirect materials$6.85 Direct labor$3.80 Variable manufacturing overhead$1.35 Fixed manufacturing overhead $23,100 Sales commissions$1.30 Variable administrative expense$0.65 Fixed selling and administrative expense $7,500 If the selling price is $26.80 per unit, the contribution margin per unit sold is closest to:

$12.85= 26.80 - 6.85 - 3.80 - 1.35 - 1.30 - .65

Shane Corporation has provided the following data concerning last month's operations. Direct materials$23,000Direct labor$58,000Manufacturing overhead applied to Work in Process$92,000 BeginningEndingWork in process inventory$56,000 $69,000 Finished goods inventory$33,000 $36,000 How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold? Multiple Choice

$157,000; 23,000 + 58000 + 92000+ 56000 - 69000= 160000; 160,000 + 33000 -36,000= 157,000

Bolka Corporation, a merchandising company, reported the following results for October: Sales$464,000Cost of goods sold (all variable)$173,500Total variable selling expense$24,600Total fixed selling expense$23,000Total variable administrative expense$8,900Total fixed administrative expense$38,200 The contribution margin for October is:

$257,000= sales - variable costs

Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: Estimates made at the beginning of the year: Estimated machine-hours 34,200 Estimated variable manufacturing overhead$6.21per machine-hourEstimated total fixed manufacturing overhead$1,006,164 Actual machine-hours for the year 32,000 The predetermined overhead rate for the recently completed year was closest to:

$35.63 per machine-hour = (34200 x 6.21) + 1006164/ 34200

Job 910 was recently completed. The following data have been recorded on its job cost sheet: Direct materials$2,414 Direct labor-hours 74labor-hoursDirect labor wage rate$17per labor-hourMachine-hours 137machine-hours The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $18 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be:

$6,138

The following costs were incurred in May: Direct materials$47,300 Direct labor$31,400 Manufacturing overhead$25,400 Selling expenses$15,200 Administrative expenses$35,600 Prime costs during the month totaled:

$78,700 = DM + DL = 31400 + 47300

Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $69,200. The company's beginning merchandise inventory was $15,600 and its ending merchandise inventory was $28,800. What was the total amount of the company's merchandise purchases for the month?

$82,400= 69200 - 15600 + 28800

Molzahn Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Estimated total manufacturing overhead at the beginning of the year $481,250 Estimated direct labor-hours at the beginning of the year 35,000direct labor-hours Results of operations: Actual direct labor-hours 40,000direct labor-hoursManufacturing overhead: Indirect labor cost$179,000 Other manufacturing overhead costs incurred$465,000

$94,000 Underapplied

Molzahn Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Estimated total manufacturing overhead at the beginning of the year $481,250 Estimated direct labor-hours at the beginning of the year 35,000direct labor-hours Results of operations: Actual direct labor-hours 40,000direct labor-hoursManufacturing overhead: Indirect labor cost$179,000 Other manufacturing overhead costs incurred$465,000

$94,000 Underapplied =481250/35000 =13.75 *40000= 550000 -644000 =94000 underapplied

Which of the following would usually be found on a job cost sheet under a normal cost system? Actual direct material costActual manufacturing overhead costA)YesYesB)YesNoC)NoYesD)NoNo

Choice B

n the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the cost of goods manufactured is computed according to which of the following equations?

Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory - Ending work in process inventory

Ruddick Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Cost of goods manufactured$1,486,000Cost of goods sold (unadjusted)$1,337,000 The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:

Finished Goods1,486,000 Work in Process 1,486,000

In a job-order costing system, indirect labor cost is usually recorded as a debit to:

Manufacturing Overhead.

Refer to the T-account below: Manufacturing Overhead(2)9,000(12)167,000(3)15,000 (4)80,000 (5)30,000 (6)25,000 159,000 167,000 Bal.8,000 The ending balance of $8,000 represents which of the following?

Overapplied overhead.

In a job-order costing system that is based on machine-hours, which of the following formulas is correct?

Predetermined overhead rate = Estimated manufacturing overhead ÷ Estimated machine-hours

Contribution margin is:

Sales less variable production, variable selling, and variable administrative expenses.

Firebaugh Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Raw materials purchased on account$520,000Raw materials (all direct) requisitioned for use in production$467,000 What is the journal entry to record raw materials used in production?

Work In Process467,000 Raw Materials 467,000

In a job-order costing system, manufacturing overhead applied is recorded as a debit to:

Work in Process inventory.

Farrel Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Direct labor cost$574,000Manufacturing overhead: Indirect labor cost$163,000Other manufacturing overhead costs incurred$584,000 What is the journal entry to record the direct and indirect labor costs incurred during the year?

Work in Process574,000 Manufacturing Overhead163,000 Wages Payable 737,000

The salary paid to the president of a company would be classified on the income statement as a(n):

administrative expense.

Manufacturing overhead includes:

all manufacturing costs except direct labor and direct materials.

Direct costs:

can be easily traced to a particular cost object.

Fixed costs expressed on a per unit basis:

decrease with increases in activity.

In activity-based costing, the total activity in an activity cost pool can be computed by:

dividing the total overhead cost in the activity cost pool by the activity cost pool's activity rate.