Questions

Q: Bilkins Financial Advisors provides accounting and finance assistance to customers in the retail business. They have 4 professionals on staff, plus an office with 6 clerical staff. Total compensation, including benefits, for the professional staff runs about $576,000 per year, and they normally have about 8,000 billable hours per year. Professional staff keep detailed time sheets distributed by client number. Office and administrative costs total $754,000 a year. Bilkins allocates professional time and administrative costs to clients monthly, using allocation rates based on billable hours. During July, Bilkins' professionals spent 36 hours on their client, Soupy Sales. Bilkins adds a 25% markup on their costs to calculate amount billed to the customer. How much gross profit did Bilkins earn from Soupy Sales in July? A) $1,698.25 B) $648.00 C) $1,870.31 D) $1,496.25

Q: Bilkins Financial Advisors provides accounting and finance assistance to customers in the retail business. They have 4 professionals on staff, plus an office with 6 clerical staff. Total compensation, including benefits, for the professional staff runs about $576,000 per year, and they normally have about 8,000 billable hours per year. Professional staff keep detailed time sheets distributed by client number. Office and administrative costs total $754,000 a year. Bilkins allocates professional time and administrative costs to clients monthly, using allocation rates based on billable hours. During July, Bilkins' professionals spent 36 hours on their client, Soupy Sales. Bilkins adds a 25% markup on their costs to calculate amount billed to the customer. How much did Bilkins bill their customer Soupy Sales for the month of July? A) $6,633.00 B) $6,833.25 C) $7,481.25 D) $5,985.00

Q: Bilkins Financial Advisors provides accounting and finance assistance to customers in the retail business. They have 4 professionals on staff, plus an office with 6 clerical staff. Total compensation, including benefits, for the professional staff runs about $576,000 per year, and they normally have about 8,000 billable hours per year. Professional staff keep detailed time sheets distributed by client number. Office and administrative costs total $754,000 a year. Bilkins allocates professional time and administrative costs to clients monthly, using allocation rates based on billable hours. During July, Bilkins' professionals spent 36 hours on their client, Soupy Sales. What is the total amount of cost that Bilkins will record for the client for the month? A) $3,393 B) $2,592 C) $5,040 D) $5,985

Q: Bilkins Financial Advisors provides accounting and finance assistance to customers in the retail business. They have 4 professionals on staff, plus an office with 6 clerical staff. Total compensation, including benefits, for the professional staff runs about $576,000 per year, and they normally have about 8,000 billable hours per year. Professional staff keep detailed time sheets distributed by client number. Office and administrative costs total $754,000 a year. What is the cost allocation rate that Bilkins will use for office and administrative costs? A) $94.25 per hour B) $36.00 per hour C) $72.00 per hour D) $74.13 per hour

Q: Bilkins Financial Advisors provides accounting and finance assistance to customers in the retail business. They have 4 professionals on staff, plus an office with 6 clerical staff. Total compensation, including benefits, for the professional staff runs about $576,000 per year, and they normally have about 8,000 billable hours per year. Professional staff keep detailed timesheets distributed by client number. Office and administrative costs total $754,000 a year. What is the cost allocation rate that Bilkins will use for direct laborue004i.e. the cost of the professional staff? A) $75 per hour B) $36 per hour C) $72 per hour D) $76 per hour

Q: Abba Accounting expects its accountants to work a total of 24,000 direct labor hours per year. Abba's estimated total indirect costs are $240,000. The direct labor rate is $75 per hour. If Abba does a job requiring 40 hours of direct labor, and bills the client using a standard markup of 40%, what will be the amount that Abba bills the client for? A) $3,700 B) $4,200 C) $3,400 D) $4,760

Q: Abba Accounting expects its accountants to work a total of 24,000 direct labor hours per year. Abba's estimated total indirect costs are $240,000. The direct labor rate is $75 per hour. If Abba does a job requiring 40 hours of direct labor, what is the total job cost? A) $7,000 B) $400 C) $3,400 D) $3,000

Q: Abba Accounting expects its accountants to work a total of 24,000 direct labor hours per year. Abba's estimated total indirect costs are $240,000. What is the indirect cost allocation rate? A) $10 per hour B) $20 per hour C) $100 per hour D) $120 per hour

Q: The engineering firm of Dobbs and Smith uses a job order costing system to accumulate client-related costs. The overhead rate is 60% of direct labor cost. Staff engineer time is charged at a rate of $80 per hour. A recent job for a client involved 30 staff labor hours. How much was the total job cost? A) $1,600 B) $2,400 C) $3,840 D) $360

Q: In a service business that uses a job order costing system, the professional staff would normally keep precise records of time spent on each client. It is equally important that the clerical staff and other indirect labor personnel keep similar records of time spent on each client.

Q: When job order costing is used in a service business, the allocation of direct labor costs is normally based on direct labor hours, and the allocation of indirect costs is normally based on the indirect labor hours.

Q: In the service industry, the use of job order costing is made much more effective if a company uses computerized time records.

Q: When job order costing is used in the service industry, the allocation of indirect costs is normally based on direct labor hours.

Q: Job order costing is used primarily in the manufacturing and industrial sectors, but is not well suited for the service industry.

Q: Darrius Travel Services provided the following information: Cost allocation rate for direct labor: $40 per hour Cost allocation rate for indirect costs: $22 per hour Darrius is negotiating a job with a new client. The job will require 10 hours of direct labor. If Darrius wishes to make at least 15% gross profit on the deal, they need to receive $713 of revenues.

Q: Darrius Travel Services provided the following information: Cost allocation rate for direct labor: $40 per hour Cost allocation rate for indirect costs: $22 per hour If Darrius receives $350 for a job requiring 5 hours of direct labor, they will make a profit of $40.

Q: Darrius Travel Services provided the following information: Cost allocation rate for direct labor: $40 per hour Cost allocation rate for indirect costs: $22 per hour If Darrius receives $700 for a job requiring 12 hours of direct labor, they will make a profit of $44.

Q: At January 1, 2012, Feldstein Manufacturing Company had a beginning balance in Work in process of $80,000 and a beginning balance in Finished goods of $20,000. During the year, Feldstein incurred manufacturing costs of $350,000. During the year, the following transactions occurred: Job A-12, was completed for a total cost of $120,000, and was sold for $125,000. Job A-13, was completed for a total cost of $200,000, and was sold for $210,000. Job A-15, was completed for a total cost $60,000, but was not sold as of year-end. The Manufacturing overhead account had a preliminary credit balance of $12,000, and was cleared to zero at year-end. What was the amount of gross profit reported by Feldstein at the end of the year? A) $2,000 B) $27,000 C) $3,000 D) $15,000

Q: At January 1, 2012, Feldstein Manufacturing Company had a beginning balance in Work in process of $80,000 and a beginning balance in Finished goods of $20,000. During the year, Feldstein incurred manufacturing costs of $350,000. During the year, the following transactions occurred: Job A-12, was completed for a total cost of $120,000, and was sold for $125,000. Job A-13, was completed for a total cost of $200,000, and was sold for $210,000. Job A-15, was completed for a total cost $60,000, but was not sold as of year-end. The Manufacturing overhead account had a preliminary credit balance of $12,000, and was cleared to zero at year-end. What was the final balance in the Cost of goods sold account? A) $308,000 debit balance B) $332,000 debit balance C) $320,000 debit balance D) $12,000 credit balance

Q: At January 1, 2012, Feldstein Manufacturing Company had a beginning balance in Work in process of $80,000 and a beginning balance in Finished goods of $20,000. During the year, Feldstein incurred manufacturing costs of $350,000. During the year, the following transactions occurred: Job A-12, was completed for a total cost of $120,000 and was sold for $125,000. Job A-13, was completed for a total cost of $200,000 and was sold for $210,000. Job A-15, was completed for a total cost $60,000, but was not sold as of year-end. At the end of the year, what was the balance in Finished goods? A) $60,000 debit balance B) $40,000 credit balance C) $80,000 debit balance D) $30,000 debit balance

Q: On June 30, Coraline Company finished job number 750, with total job costs of $4,600, and transferred the costs to Finished goods. On July 6, they completed the sale of the goods to a customer for $5,100 cash. In order to record the sale, two entries are necessary, one to record revenue, and one to record cost of goods sold. Which of the following is the correct entry needed to record the cost of goods sold? A) Debit Finished goods inventory $4,600, credit Cost of goods sold $4,600 B) Debit Cost of goods sold $4,600, credit Work in process inventory $4,600 C) Debit Work in process inventory $4,600, credit Cost of goods sold $4,600 D) Debit Cost of goods sold $4,600, credit Finished goods inventory $4,600

Q: On June 30, Coraline Company finished job number 750, with total job costs of $4,600, and transferred the costs to Finished goods. On July 6, they completed the sale of the goods to a customer for $5,100 cash. In order to record the sale, two entries are necessary, one to record revenue, and one to record cost of goods sold. Which of the following is the correct entry needed to record the revenues? A) Debit Finished goods inventory $4,600, credit Sales revenue $4,600 B) Debit cash $5,100, credit Sales revenue $5,100 C) Debit Sales revenue $5,100, credit Cash $5,100 D) Debit Cost of goods sold $4,600, credit Sales revenue $4,600

Q: At the end of the year, Martin Company has a preliminary credit balance in the Manufacturing overhead account of $95. Which of the following is the year-end adjusting entry needed to clear the balance to zero? A) Debit Cost of goods sold $95, credit Finished goods inventory $95 B) Debit Manufacturing overhead $95, credit Finished goods inventory $95 C) Debit Manufacturing overhead $95, credit Cost of goods sold $95 D) Debit Cost of goods sold $95, credit Manufacturing overhead $95

Q: At the end of the year, Deltona Company has a preliminary debit balance in the Manufacturing overhead account of $3,950. Which of the following is the year-end adjusting entry needed to clear the balance to zero? A) Debit Cost of goods sold $3,950, credit Manufacturing overhead $3,950 B) Debit Manufacturing overhead $3,950, credit Cost of goods sold C) Debit Work in process $3,950, credit Manufacturing overhead $3,950 D) Debit Gross profit $3,950, credit Cost of goods sold $3,950

Q: Altina Company just finished job A40. It included $400 of direct materials, and $3,600 of direct labor. Altina uses a predetermined manufacturing overhead rate based on a percentage of direct labor costs. That rate is 40%. The entry to record the completion of the job should be a: A) debit to Finished goods $5,440, and a credit to Materials inventory $5,440. B) debit to Cost of goods sold $5,440, and a credit to Finished goods $5,440. C) debit to Finished goods $5,440, and a credit to Work in process $5,440. D) debit to Work in process $5,440, and a credit to Finished goods $5,440.

Q: Lakeside Company estimated manufacturing overhead costs for 2012 at $378,000, based on 180,000 estimated direct labor hours. Actual direct labor hours for 2012 totaled 195,000. The manufacturing overhead account contains debit entries totaling $391,500. The manufacturing overhead for 2012 was: A) $31,500 underallocated. B) $31,500 overallocated. C) $18,000 underallocated. D) $18,000 overallocated.

Q: Underallocated manufacturing overhead costs are always the result of which of the following situations? A) Allocated overhead costs are less than actual overhead costs. B) Actual overhead costs are less than allocated overhead costs. C) Actual overhead costs are greater than estimated overhead costs. D) Estimated overhead costs are greater than actual overhead costs.

Q: Underallocation of manufacturing overhead would require which of the following year-end adjustments? A) A credit to Finished goods inventory B) A credit to Manufacturing overhead C) A debit to Work-in process inventory D) A credit to Cost of goods sold

Q: Overallocation of manufacturing overhead would require which of the following year-end adjustments? A) A credit to Finished goods inventory B) A credit to Manufacturing overhead C) A debit to Work-in process inventory D) A credit to Cost of goods sold

Q: On January 1, 2012, Jackson Company's work in process inventory account had a balance of $65,000. During 2012, materials requisitioned for use in production amounted to $70,000, of which $66,000 represented direct materials. Factory wages for the period were $209,000, of which $186,400 were for direct labor. Manufacturing overhead is allocated on the basis of 60% of direct labor cost. Actual overhead was $116,440. Jobs costing $353,240 were completed during 2012. The December 31, 2012, balance in work in process inventory is: A) $80,000. B) $72,800. C) $107,200. D) $76,000.

Q: On January 1, 2012, Matthew Company's work in process inventory account had a balance of $30,000. During 2012, $58,000 of direct materials was placed into production. Manufacturing wages incurred amounted to $84,000, of which $66,000 were for direct labor. Manufacturing overhead is allocated on the basis of 120% of direct labor cost. Actual manufacturing overhead was $90,000. Jobs costing $220,400 were completed during 2009. What is the December 31, 2012 balance in work in process inventory? A) $16,800 B) $34,800 C) $6,000 D) $12,800

Q: During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $506,000 of manufacturing overhead costs. Overhead costs have been underallocated.

Q: Cost of goods sold needs to be debited at year-end when the manufacturing overhead is overallocated in order to clear the overhead account to zero.

Q: Overallocated manufacturing overhead occurs when the manufacturing overhead allocated to work in process inventory is less than the amount actually incurred.

Q: When jobs are completed, the total cost of the job is recorded as a debit to Finished goods and a credit to Work in process.

Q: The cost of goods manufactured is recorded as a debit to the Finished goods account.

Q: During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $460,000 of manufacturing overhead costs. At year-end, the adjustment entry needed to clear the overhead balance to zero will include a debit to Cost of goods sold.

Q: During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $506,000 of manufacturing overhead costs. At year-end, the adjustment entry needed to clear the overhead balance to zero will include a debit to Cost of goods sold.

Q: During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $492,000 of manufacturing overhead costs. Overhead costs have been underallocated.

Q: The cost of goods manufactured is recorded as a debit to the Work in process account.

Q: The records at Smith and Jones Company show Job. No. 110 charged with $11,000 of direct materials and $12,500 of direct labor. Smith and Jones Company allocates manufacturing overhead at 85% of direct labor cost. What is the total cost of Job No. 110? A) $20,625 B) $34,125 C) $22,500 D) $21,625

Q: Felton Quality Productions Company has provided the following information for the year 2012: Actual manufacturing overhead costs incurred $89,770 Manufacturing overhead costs allocated to production $95,200 Actual direct materials cost $224,000 Actual direct labor cost $93,750 Actual direct labor hours 18,500 direct labor hours Actual machine hours 56,000 machine hours Based on the above information, what was Felton's allocation rate? (Hint: for this type of problem, the "trial and error" method may be used.) A) $1.70 per machine hour B) 52% of direct labor cost C) 180% of direct materials cost D) $24.80 per direct labor hour

Q: Q-dot Manufacturing Company has provided the following information for the year 2012: Actual manufacturing overhead costs incurred $199,900 Manufacturing overhead costs allocated to production $189,000 Actual direct materials cost $560,000 Actual direct labor cost $333,000 Actual direct labor hours 9,450 direct labor hours Actual machine hours 180,000 machine hours Based on the above information, what was Q-dot's allocation rate? (Hint: for this type of problem, the "trial and error" method may be used.) A) $7.60 per machine hour B) 132% of direct labor cost C) 80% of direct materials cost D) $20 per direct labor hour

Q: Petraeus Fabrication Company has provided the following information for the year 2012: Actual manufacturing overhead costs incurred $268,000 Manufacturing overhead costs allocated to production $259,200 Actual direct materials cost $800,000 Actual direct labor cost $144,000 Actual direct labor hours 3,200 direct labor hours Actual machine hours 10,900 machine hours Based on the above information, what was Petraeus's allocation rate? (Hint: for this type of problem, the "trial and error" method may be used.) A) $95 per direct labor hour B) 180% of direct labor cost C) $8.50 per machine hour D) 12% of direct materials cost

Q: Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data: Total manufacturing overhead estimated at the beginning of the year: $140,000 Total direct labor costs estimated at the beginning of the year: $350,000 Total direct labor hours estimated at the beginning of the year: 12,000 direct labor hours Actual manufacturing overhead costs for the year: $159,000 Actual direct labor costs for the year: $362,000 Actual direct labor hours for the year: 12,400 direct labor hours Based on the data above, what was the preliminary ending balance in the manufacturing overhead account, prior to the year-end adjustment to clear the balance to zero? (Please round to nearest whole dollar.) A) $19,000 credit balance B) $19,000 debit balance C) $14,200 credit balance D) $14,200 debit balance

Q: Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data: Total manufacturing overhead estimated at the beginning of the year: $140,000 Total direct labor costs estimated at the beginning of the year: $350,000 Total direct labor hours estimated at the beginning of the year: 12,000 direct labor hours Actual manufacturing overhead costs for the year: $159,000 Actual direct labor costs for the year: $362,000 Actual direct labor hours for the year: 12,400 direct labor hours Based on the data above, how much manufacturing overhead was allocated to production? (Please round to nearest whole dollar.) A) $825,360 B) $905,000 C) $144,800 D) $159,280

Q: Archangel Manufacturing has just finished the year 2012. They created a predetermined manufacturing overhead allocation rate at the beginning of the year based on a percentage of direct labor costs. Below are various data: Total manufacturing overhead estimated at the beginning of the year: $140,000 Total direct labor costs estimated at the beginning of the year: $350,000 Total direct labor hours estimated at the beginning of the year: 12,000 direct labor hours Actual manufacturing overhead costs for the year: $159,000 Actual direct labor costs for the year: $362,000 Actual direct labor hours for the year: 12,400 direct labor hours Based on the data above, what was the allocation rate for 2012? (Please round to nearest whole percent.) A) 40% B) 44% C) 250% D) 228%

Q: The Quadrangle Fabrication Plant had a fire at the beginning of 2013 and most of the records for the year 2012 were lost. Some data for the year 2012 were located by the accountants and are shown below. Total manufacturing overhead estimated at the beginning of the year: $105,840 Total direct labor costs estimated at the beginning of the year: $186,000 Total direct labor hours estimated at the beginning of the year: 3,600 direct labor hours Actual manufacturing overhead costs for the year: $99,760 Actual direct labor costs for the year: $142,000 Actual direct labor hours for the year: 2,950 direct labor hours The company bases its manufacturing overhead allocation on direct labor hours. What was the preliminary ending balance in the manufacturing overhead account prior to the year-end adjustment to clear the balance to zero? (Please round to the nearest whole dollar.) A) $6,080 credit balance B) $4,982 debit balance C) $13,030 credit balance D) $13,030 debit balance

Q: The Quadrangle Fabrication Plant had a fire at the beginning of 2013 and most of the records for the year 2012 were lost. Some data for the year 2012 were located by the accountants and are shown below. Total manufacturing overhead estimated at the beginning of the year: $105,840 Total direct labor costs estimated at the beginning of the year: $186,000 Total direct labor hours estimated at the beginning of the year: 3,600 direct labor hours Actual manufacturing overhead costs for the year: $99,760 Actual direct labor costs for the year: $142,000 Actual direct labor hours for the year: 2,950 direct labor hours The company bases its manufacturing overhead allocation on direct labor hours. How much manufacturing overhead was allocated to production in 2012? (Please round to the nearest whole dollar.) A) $105,816 B) $86,730 C) $99,769 D) $81,745

Q: The Quadrangle Fabrication Plant had a fire at the beginning of 2013 and most of the records for the year 2012 were lost. Some data for the year 2012 were located by the accountants and are shown below. Total manufacturing overhead estimated at the beginning of the year: $105,840 Total direct labor costs estimated at the beginning of the year: $186,000 Total direct labor hours estimated at the beginning of the year: 3,600 direct labor hours Actual manufacturing overhead costs for the year: $99,760 Actual direct labor costs for the year: $142,000 Actual direct labor hours for the year: 2,950 direct labor hours The company bases its manufacturing overhead allocation on direct labor hours. What was the predetermined manufacturing overhead allocation rate for 2012? (Please round to the nearest cent.) A) $35.87 B) $33.82 C) $29.40 D) $27.71

Q: In 2012, the Doric Agricultural Products Company used a predetermined manufacturing overhead rate of 150% times direct labor cost. Information for the year is as follows: Actual direct materials cost $812,500 Actual direct labor cost $180,000 Actual overhead costs incurred: $264,000 Total direct labor hours 5,520 What was the preliminary ending balance in the manufacturing overhead account, before the year-end adjustment to clear the balance to zero? A) Credit of $6,000 B) Debit of $6,000 C) Credit of $5,900 D) Debit of $4,300

Q: In 2012, the Cameratta Company used a predetermined manufacturing overhead rate of $4.75 per machine hour. Information for the year is as follows: Actual overhead costs incurred: Indirect materials $5,200 Indirect labor $3,750 Plant depreciation $4,800 Plant utilities and insurance $9,530 Other plant overhead costs $12,700 Total machine hours used during the year 7,520 What was the preliminary ending balance in the manufacturing overhead account before the year-end adjustment to clear the balance to zero? A) Credit of $260 B) Debit of $550 C) Credit of $330 D) Debit of $260

Q: Barbicon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they formulated a rate of 20% times the direct labor cost. In June, 2012, Barbicon completed job number 13C. Job stats are as follows: Direct materials cost $6,220 Direct labor cost $900 Direct labor hours 32 hours Units of product produced: 250 kilos How much was the cost per unit (cost per kilo) of finished product? (Please round to the nearest cent.) A) $29.20 B) $33.46 C) $28.48 D) $36.70

Q: Barbicon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they formulated a rate of 20% times the direct labor cost. In June, 2012, Barbicon completed job number 13C. Job stats are as follows: Direct materials cost $6,220 Direct labor cost $900 Direct labor hours 32 hours Units of product produced: 250 kilos How much was the total job cost? A) $8,364 B) $180 C) $7,120 D) $7,300

Q: Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. In June, 2012, Arabica completed job number 511. Job stats are as follows: Direct materials cost $27,500 Direct labor cost $13,000 Direct labor hours 400 hours Units of product produced: 200 crates How much was the cost per unit (cost per crate) of finished product? (Please round to the nearest cent.) A) $374.38 B) $202.50 C) $254.50 D) $283.75

Q: Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. In June, 2012, Arabica completed job number 511. Job stats are as follows: Direct materials cost $27,500 Direct labor cost $13,000 Direct labor hours 400 hours Units of product produced: 200 crates How much was the total job cost? A) $40,500 B) $56,750 C) $50,900 D) $74,875

Q: Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. In June, 2012, Arabica completed job number 511. Job stats are as follows: Direct materials cost $27,500 Direct labor cost $13,000 Direct labor hours 400 hours Units of product produced: 200 crates How much manufacturing overhead was allocated to the job? A) $16,250 B) $10,400 C) $5,000 D) $34,375

Q: Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. What was the predetermined manufacturing overhead rate? A) 80% of direct labor cost B) $1.25 per direct labor hour C) 125% of direct labor cost D) $35.00 per direct labor hour

Q: Inglesias Company just completed job number 12. See details below. Direct labor cost: $840 Direct materials cost: $1,100 Machine hours for milling machinery: 7 Direct labor hours: 22 Predetermined manufacturing overhead allocation rate: $90 per machine hour Number of units of finished product: 25 units What was cost per unit of finished product? (Please round to nearest cent.) A) $77.88 B) $102.80 C) $12.40 D) $156.80

Q: Halcyon Company just completed job number 10-B. See details below. Direct labor cost: $2,040 Direct materials cost: $90 Direct labor hours: 75 Predetermined manufacturing overhead allocation rate: $34.00 per direct labor hour Number of units of finished product: 200 units What was cost per unit of finished product? (Please round to nearest cent.) A) $26.40 B) $46.80 C) $25.50 D) $23.40

Q: Halcyon Company just completed job number 10B. See details below. Direct labor cost: $2,040 Direct materials cost: $90 Machine hours for milling machinery: 5 Direct labor hours: 75 Predetermined manufacturing overhead allocation rate: $34.00 per direct labor hour What was the total job cost? A) $2,640 B) $4,680 C) $2,550 D) $4,590

Q: Gardner Machine Shop uses a predetermined manufacturing overhead rate of $63.20 per direct labor hour. In January, Gardener completed job number A33, which included 15 direct labor hours. Which of the following correctly describes the journal entry needed to allocate overhead to the job? A) Debit Finished goods for $948, credit Manufacturing overhead for $948 B) Debit Manufacturing overhead for $948, credit Work in process for $948 C) Debit Work in process for $948, credit Manufacturing overhead for $948 D) Debit Cost of goods sold for $948, credit Finished goods for $948

Q: Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $316,000. They will allocate based on direct labor hours. Gardner estimates 5,000 direct labor hours for the coming year. In January, Gardener completed job number A33, which included 15 direct labor hours. How much overhead was allocated to the job? A) $948 B) $632 C) $1,204 D) $990

Q: Inglesias Company just completed job number 12. See details below. Direct labor cost: $840 Direct materials cost: $1,100 Machine hours for milling machinery: 7 Direct labor hours: 22 Predetermined manufacturing overhead allocation rate: $90 per machine hour What was the total job cost? A) $2,570 B) $1,940 C) $1,947 D) $3.920

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