Question : 81.DynaMore applies overhead to each window cleaning job it provides : 1302690

 

81.DynaMore applies overhead to each window cleaning job it provides to customers based on direct labor hours. Information concerning manufacturing overhead and labor for July follows:

 

Estimated direct labor 5,000 hours @ $14.20 = $71,000

Direct labor incurred5,100hours @ $14.50 = $73,950

Estimated manufacturing overhead$269,800

Actual manufacturing overhead $281,400

 

How much is the predetermined overhead rate?

A.$3.80

B.$3.65

C.$53.96

D.$52.90

 

82.RedExShipping determined the rate to apply overhead based on direct labor hours would be $5.40, and based on machine hours would be $4.20. Job 664used $26.00of direct materials, 2.5 machine hours, and 4 hours of direct labor at a cost of $14per hour. How much is the manufacturing cost of job 664if RedExShipping applies overhead based on machine hours?

A.$92.50

B.$10.50

C.$21.60

D.$103.60

 

83.National Production Company applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead and labor for August follows:

 

EstimatedActual

Overhead cost              $174,000              $171,100

Direct laborhours               5,800              5,900

Direct labor cost               $87,000              $89,975

 

How much is the predetermined overhead rate?

A.$2.00

B.$1.90

C.$30.00

D.$1.93

84.A form used to accumulate the cost of producing products is called a(n)

A.jobcost sheet.

B.material requisition.

C.time sheet.

D.purchase order.

 

85.Which of the following is true in a job-order costing system?

A.Cost of goods sold will include the costs of all jobs that have been completed during the accounting period.

B.Work in Process Inventory will include the cost of all jobs that are currently completed and ready to deliver to customers.

C.Finished Goods Inventory will include the cost of all jobs that are completed but not yet shipped and sold.

D.Raw Materials Inventory will include the cost of jobs that have been started but are not yet completed.

 

86.An allocation base is

A.a common activitythat jobs share, which is used to spread the overhead costs among the various jobs.

B.thetotalamount of overhead assigned to a job.

C.used to estimate how many labor hours areneededto complete a job.

D.used to determine the total cost of a job completed during the period.

 

87.Direct labor hours are a good basis for applying overhead when

A.most direct laborers are doing the same type of work and use about the same amount of low-level technology.

B.the process is very capital intensive.

C.labor is a very small part of total cost.

D.some labor is manual and other labor uses very expensive equipment.

 

88.Which of the following accounts is debited, when overhead is applied to jobs?

A.Manufacturing Overhead

B.Finished Goods Inventory

C.Indirect Labor

D.Work in Process Inventory

 

89.When manufacturing overhead is applied to jobs, which of the following accountsis credited?

A.Manufacturing Overhead

B.Work in Process Inventory

C.Accounts Payable

D.Raw Materials Inventory

 

 

90.When a job is sold, it is recorded with a

A.debit to Work in Process Inventory and a credit to Finished Goods Inventory.

B.debit to Finished Goods Inventory and a credit to Work in Process Inventory.

C.debit to Cost of Goods Sold and a credit to Finished Goods Inventory.

D.debit to Work in Process Inventory and a credit to Cost of Goods Sold.