ACCT 241 Week 2 Quiz

ACCT 241 Week 2 Quiz | Chapter 2 Quiz | Assignment Help | American University 

1.

Juanita Corporation uses a job-order costing system and applies overhead on the basis of direct labor cost. At the end of October, Juanita had one job still in process. The job cost sheet for this job contained the following information:

Direct materials                               $480

Direct labor                                       $150

Manufacturing overhead applied         $600

An additional $100 of labor was needed in November to complete this job. For this job, how much should Juanita have transferred to finished goods inventory in November when it was completed?

Multiple Choice

 $1,230

 $1,330

 $500

 $1,730

2.

Sutter Corporation uses a job-order costing system with a single plant wide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:

Total machine-hours                                             10,000

Total fixed manufacturing overhead cost                           $    35,000

Variable manufacturing overhead per machine-hour     $   2.20

Recently, Job T369 was completed with the following characteristics:

Number of units in the job 10

Total machine-hours   40

Direct materials                  $750

Direct labor cost                 $1,560

If the company marks up its unit product costs by 20% then the selling price for a unit in Job T369 is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

 $324.56

 $304.56

 Correct

 $277.20

 $50.76

3.

Sargent Corporation applies overhead cost to jobs on the basis of 80% of direct labor cost. If Job 210 shows $10,000 of manufacturing overhead cost applied, how much was the direct labor cost on the job?

Multiple Choice

 $10,000

 $12,500

 Correct

 $11,000

 $8,000

4.

Mundorf Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

                                                                       Forming                 Assembly             Total

Estimated total machine-hours (MHs)                   9,000               1,000    10,000

Estimated total fixed manufacturing overhead cost          $52,200           $2,400          $54,600

Estimated variable manufacturing overhead cost per MH  $2.00            $2.10  

During the most recent month, the company started and completed two jobs--Job B and Job H. There were no beginning inventories. Data concerning those two jobs follow:

                                            Job B         Job H

Forming machine-hours 6,100 2,900

Assembly machine-hours 400         600

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The amount of manufacturing overhead applied to Job B is closest to:

Multiple Choice

 $48,555

 $35,490

 $2,988

 $45,567

5.

Sivret Corporation uses a job-order costing system with a single plant wide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:

Total machine-hours                                         80,000

Total fixed manufacturing overhead cost                        $624,000

Variable manufacturing overhead per machine-hour        $3.10

Recently, Job M598 was completed with the following characteristics:

Number of units in the job        60

Total machine-hours           300

Direct materials                  $645

Direct labor cost                $9,000

If the company marks up its unit product costs by 40% then the selling price for a unit in Job M598 is closest to: (Round your intermediate calculations to 2 decimal places.)

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Multiple Choice

 $301.35

 $225.05

 $86.10

 $321.35

6.

Thach Corporation uses a job-order costing system with a single plant wide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $665,000, variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine-hours. Recently, Job T321 was completed with the following characteristics:

Number of units in the job       30

Total machine-hours                  90

Direct materials                        $630

Direct labor cost                 $2,880

The unit product cost for Job T321 is closest to:

Multiple Choice

 $117.00

 $58.50

 $154.50

 Correct

 $51.50    

7.

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                        36,000  

Estimated variable manufacturing overhead   $ 3.01 per machine-hour

Estimated total fixed manufacturing overhead $1,058,040  

The predetermined overhead rate for the recently completed year was closest to:

Multiple Choice  

 $29.39 per machine-hour

 $32.40 per machine-hour

 $3.01 per machine-hour

 $32.81 per machine-hour

8.

Assigning manufacturing overhead to a specific job is complicated by all of the below except:

Multiple Choice

 The average cost of actual fixed manufacturing overhead expenses will vary depending on how many units are produced in a period.

 Manufacturing overhead is incurred only to support some jobs.

 Manufacturing overhead consists of both variable and fixed costs.

 Manufacturing overhead is an indirect cost that is either impossible or difficult to trace to a particular job.

9.

Which of the following statements about using a plant wide overhead rate based on direct labor is correct?

Multiple Choice

 Using a plant wide overhead rate based on direct labor costs will ensure that direct labor costs will be correctly traced to jobs.

 The labor theory of value ensures that using a plant wide overhead rate based on direct labor will do a reasonably good job of assigning                    overhead costs to jobs.

 It is often overly simplistic and incorrect to assume that direct labor-hours is a company’s only manufacturing overhead cost driver.

 Using a plantwide overhead rate based on direct labor-hours will ensure that direct labor costs are correctly traced to jobs.

10.

Ashe Corporation has two manufacturing departments--Machining and Customizing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

                                                                 Machining                   Customizing             Total  

Estimated total machine-hours (MHs)               1,000                     4,000                    5,000

Estimated total fixed manufacturing overhead cost       $4,700             $9,200                   $13,900

Estimated variable manufacturing overhead cost per MH $1.10                $2.60  

During the most recent month, the company started and completed two jobs--Job B and Job K. There were no beginning inventories. Data concerning those two jobs follow:

                                                            Job K                 Job B

Machining machine-hours             700         300

Customizing machine-hours           1,600                 2,400

Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. The manufacturing overhead applied to Job K is closest to: (Round your intermediate calculations to 2 decimal places.)

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Multiple Choice

 $13,500

 $13,716

 $11,760

 $1,740