Question : 86.              Henson Company applies overhead the basis of 120% of : 1311613

86.              Henson Company applies overhead on the basis of 120% of direct labor cost. Job No. 190 is charged with $120,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 190 is

a.$300,000.

b.$516,000.

c.$324,000.

d.$450,000.

87.              Norman Company manufactures customized desks. The following pertains to Job No. 953:

Direct materials used$18,800

Direct labor hours worked600

Direct labor rate per hour$16.00

Machine hours used400

Applied factory overhead rate per machine hour$30.00

What is the total manufacturing cost for Job No. 953?

a.$37,200

b.$40,400

c.$43,200

d.$46,400

88.              Minton Company provided the following information from its accounting records for 2013:

Expected production60,000 labor hours

Actual production56,000 labor hours

Budgeted overhead$1,500,000

Actual overhead$1,450,000

How much is the overhead application rate if Minton Company bases it on direct labor hours?

a.$25.00 per hour

b.$26.79 per hour

c.$25.89 per hour

d.$24.17 per hour

89.              The labor costs that have been identified as indirect labor should be charged to

a.manufacturing overhead.

b.direct labor.

c.the individual jobs worked on.

d.salary expense.

90.              Manufacturing overhead is applied to each job

a.at the time when the overhead cost is incurred.

b.by means of a predetermined overhead rate.

c.at the end of the year when actual costs are known.

d.only if the overhead costs can be directly traced to that job.

91.              The predetermined overhead rate is based on the relationship between

a.estimated annual costs and actual activity.

b.estimated annual costs and expected annual activity.

c.actual monthly costs and actual annual activity.

d.estimated monthly costs and actual monthly activity.

92.              The predetermined overhead rate is

a.determined on a moving average basis throughout the year.

b.not calculated until actual overhead costs are incurred.

c.determined at the beginning of the year.

d.determined at the end of the current year.

93.              In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base related to

a.direct labor hours.

b.indirect labor dollars.

c.machine hours.

d.raw materials dollars.

94.              If annual overhead costs are expected to be $800,000 and direct labor costs are expected to be $1,000,000, then if the activity base is direct labor costs:

a.$1.25 is the predetermined overhead rate.

b.for every dollar of manufacturing overhead, 80 cents of direct labor will be assigned.

c.for every dollar of direct labor, 80 cents of manufacturing overhead will be assigned.

d.a predetermined overhead rate cannot be determined.

95.              Overhead application is recorded with a

a.credit to Work in Process Inventory.

b.credit to Manufacturing Overhead.

c.debit to Manufacturing Overhead.

d.credit to job cost sheets.