Question :
92.CWN Company uses a job order costing system and last : 1236598
92.CWN Company uses a job order costing system and last period incurred $80,000 of actual overhead and $100,000 of direct labor. CWN estimates that its overhead next period will be $75,000. It also expects to incur $100,000 of direct labor. If CWN bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be:
A.75%.
B.80%.
C.107%.
D.125%.
E.133%.
93.Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Cosi expects to incur $800,000 of overhead during the next period, and expects to use 50,000 labor hours at a cost of $10.00 per hour. What is Cosi Company’s overhead application rate?
A.6.25%.
B.62.5%.
C.160%.
D.1600%.
E.67%.
94.The B&T Company’s production costs for May are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production equipment, $800; heat, lights and power, $1,000; and insurance on plant and equipment, $200. B&T Company’s factory overhead incurred for May is:
A.$2,000.
B.$6,500.
C.$8,500.
D.$21,500.
E.$36,500.
95.Mesa Corp. allocates overhead to production on the basis of direct labor costs. Mesa’s total estimated overhead is $450,000 and estimated direct labor is $180,000. Determine the amount of overhead to be allocated to finished goods inventory if there is $20,000 of total direct labor cost in the jobs in the finished goods inventory.
A.$8,000.
B.$20,000.
C.$70,000.
D.$50,000.
E.$90,000.
96.Dallas Company uses a job order costing system. The company’s executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. At the end of the period, the records show that there had been 180,000 hours of direct labor and $1,200,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate?
A.$6.00 per direct labor hour.
B.$7.50 per direct labor hour.
C.$6.67 per direct labor hour.
D.$8.33 per direct labor hour.
E.$7.08 per direct labor hour.
97.Using the following accounts and an overhead rate of 90% of direct labor cost, determine the amount of applied overhead.
D.M.52,800201,520
D.L.?
A.$79,200.
B.$167,200.
C.$34,320.
D.$88,000.
E.$35,376.
98.If one unit of Product Z2 used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale?
A.$8.00.
B.$5.50.
C.$2.50.
D.$1.60.
E.$0.90.
99.The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was incurred in producing these units?
A.$3,750.
B.$2,000.
C.$4,000.
D.$6,000.
E.$9,000.
100.At the current year-end, Simply Company found that its overhead was underapplied by $2,500, and this amount was not considered material. Based on this information, Simply should
A.Close the $2,500 to Cost of Goods Sold.
B.Close the $2,500 to Finished Goods Inventory.
C.Do nothing about the $2,500, since it is not material, and it is likely that overhead will be overapplied by the same amount next year.
D.Carry the $2,500 to the income statement as “Other Expense”.
E.Carry the $2,500 to the next period.
101.If overhead applied is less than actual overhead incurred, it is:
A.Fully applied.
B.Underapplied.
C.Overapplied.
D.Expected.
E.Normal.
