Question :
101.Walsam Tools applies manufacturing overhead based direct labor hours. Information : 1302692
101.Walsam Tools applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for August follows:
EstimatedActual
Overhead cost $160,000 $161,000
Direct labor hours 8,000 8,200
Direct labor cost $120,000 $115,800
How much is the predetermined overhead rate?
A.$1.33
B.$20.00
C.$1.03
D.$19.63
102.If Duffy Company budgets total overhead costs for the next year of $40,000 and anticipates using machine hours as the overhead allocation base, which of the following statements is true?
A.If DuffyCompany expects to use 60,000 machine hours, the predetermined overhead rate is $1.50 per machine hour.
B.If Duffy Company expects to use 160,000 machine hours, the predetermined overhead rate is $4.00 per machine hour.
C.If Duffy Company expects to use 80,000 machine hours, the predetermined overhead rate is $0.50 per machine hour.
D.None of these answer choices are true
103.Builder Giant estimates the following overhead costs for 2013:
Equipment depreciation $ 30,000
Equipment maintenance 64,000
Factory management salaries 150,000
Factory rent 50,000
Total manufacturing overhead $294,000
Builder Giant incurred the following costs for 2013for job A56:
Direct material $40,000
Direct labor $12,800
Other jobs incurred $183,200 of direct labor. Builder Giant also budgeted$210,000 in direct labor costs and 20,000 machine hours for 2013. Actual manufacturing overhead for 2013was $336,000. How much is the predetermined overhead rate using direct labor cost as the allocation base?
A.$14.70
B.$1.60
C.$1.50
D.$1.40
104.Wunder Builders estimates the following overhead costs for 2013:
Equipment depreciation $ 30,000
Equipment maintenance 64,000
Factory management salaries 150,000
Factory rent 50,000
Total manufacturing overhead $294,000
Wunder Builders incurred the following costs for 2013for job 23:
Direct material $80,000
Direct labor $60,000
Wunder applies manufacturing overhead based on direct labor cost. Other jobs incurred $320,000 of direct labor. Wunder Builders budgeted $350,000 in direct labor costs and 20,000 machine hours for 2013. Actual manufacturing overhead for 2013was $300,000. How much overhead will Wunder Buildersapply to job 23?
A.$168,800
B.$294,000
C.$58,800
D.$50,400
105.Sharp Tables produces go cartsdesigned to a customer’s specification with the customer’s logo. Job 65consists of producing 40carts for Race Around for a new store opening. Overhead is applied on the basis of direct labor hours using a predetermined overhead rate of $18 per hour. Job 65incurred the following amounts:
Direct materials$2,200
Direct labor28 hours at $15 per hour
How much is the cost of Job 65?
A.$2,620
B.$3,124
C.$2,704
D.$604
106.MuddShoe Company has expected overhead costs of $864,000. The majority of the overhead costs are incurred providing production support to the direct labor force. Direct labor rates vary from $12 to $21 per hour, and more complex tasks are assigned to more skilled workers who have higher pay rates. Management projects direct labor costs to be $540,000 with39,273 direct labor hours. More complex tasks require proportionally more support than do the less complex tasks.
Each model/size of shoe is produced in a separate production batch and constitutes a job. Muddallocates overhead based on direct labor hours. During the year, the company produced 6,600 pairs of the size 8 Beachcomber shoes. A total of 4,200 direct labor hours, costing $54,600, were assigned to the job. How much overhead will be assigned to the size 8 Beachcomber shoes?
A.$92,400
B.$87,360
C.$10,560
D.$57,750
107.MuddShoe Company has expected overhead costs of $864,000. The majority of the overhead costs are incurred providing production support to the direct labor force. Direct labor rates vary from $12 to $21 per hour, and more complex tasks are assigned to more skilled workers who have higher pay rates. Management projects direct labor costs to be $540,000 with39,273 direct labor hours. More complex tasks require proportionally more support than do the less complex tasks.
Each model/size of shoe is produced in a separate production batch and constitutes a job. Muddallocates overhead based on direct labor cost. During the year, the company produced 6,600 pairs of the size 8 Beachcomber shoes. A total of 4,200 direct labor hours, costing $54,600, were assigned to the job. How much overhead will be assigned to the size 8 Beachcomber shoes?
A.$92,400
B.$90,560
C.$87,360
D.$57,750
108.Haskell Construction began the month of July with jobs 60 and 63 completed and waiting to be shipped to customers. At the end of June, jobs 61, 64, and 65 were in production. During July, jobs 66, 67, 68, 69 and 70 were begun. The company completed Jobs 61, 65, 66, 68, and 69 during July. Jobs 60, 61, 63, 66, and 68 were shipped to customers during July. Which jobs are in work in process onJuly 31?
A.61, 65, 66, 68, and 69
B.64, 67, and 70
C.67 and 70
D. 65 and 69
109.Reef Shoe Company has expected overhead costs of $864,000. The majority of the overhead costs are incurred providing production support to the direct labor force. Direct labor rates vary from $12 to $21 per hour, and more complex tasks are assigned to more skilled workers who have higher pay rates. Management projects direct labor costs to be $540,000 with39,273 direct labor hours. More complex tasks require proportionally more support than do the less complex tasks.
Each model/size of shoe is produced in a separate production batch and constitutes a job. During the year, the company produced 6,600 pairs of the size 8 Beachcomber flip flop. A total of 4,200 direct labor hours, costing $54,600, were assigned to the job. Which method of assigning overhead should management prefer?
A,Direct labor cost is the preferred allocation base because workers paid a higher rate work on more complex jobs, and more complex jobs lead to more overhead cost.
B.Direct labor hours is the preferred allocation base because workers paid a higher rate work on more complex jobs, and more complex jobs lead to more overhead cost.
C.Direct labor cost is the preferred allocation base because it is not possible to track hours during which workers spend on each type of shoe produced.
D.Direct labor hours is the preferred allocation base because the number of hours incurred for each model of shoes is the same for each worker, regardless of the rate of pay each worker earns.
110.Haskell Construction began the month of July with jobs 60 and 63 completed and waiting to be shipped to customers. At the end of June, jobs 61, 64, and 65 were in production. During July, jobs 66, 67, 68, 69 and 70 were begun. The company completed Jobs 61, 65, 66, 68, and 69 during July. Jobs 60, 61, 63, 66, and 68 were shipped to customers during July. Which jobs are in finished goods onJuly 31?
A.64, 67, and 70
B.60, 65, and69
C.65 and 69
D.60, 63, 65, and 69
