Question :
Answer the following questions using the information below:
For 2010, Jake’s : 1217190
Answer the following questions using the information below:
For 2010, Jake’s Dog Supply Manufacturing uses machine-hours as the only overhead cost-allocation base. The accounting records contain the following information:
EstimatedActual
Manufacturing overhead costs $200,000 $240,000
Machine-hours 40,000 50,000
18) Using job costing, the 2010 actual indirect-cost rate is:
A) $4.00 per machine-hour
B) $4.80 per machine-hour
C) $5.00 per machine-hour
D) $6.00 per machine-hour
19) Using actual costing, the amount of manufacturing overhead costs allocated to jobs during 2010 is:
A) $300,000
B) $250,000
C) $240,000.
D) $200,000
Answer the following questions using the information below:
Philadelphia Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $15 per direct labor-hour. The following data are obtained from the accounting records for June 2010:
Direct materials $140,000
Direct labor (3,500 hours @ $11/hour) $ 38,500
Indirect labor $ 10,000
Plant facility rent $ 30,000
Depreciation on plant machinery and equipment $ 15,000
Sales commissions $ 20,000
Administrative expenses $ 25,000
20) The actual amount of manufacturing overhead costs incurred in June 2010 totals:
A) $278,500
B) $100,000
C) $55,000
D) $40,000
Answer the following questions using the information below:
Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 20X3:
BudgetActual
Indirect costs $270,000 $300,000
Annual salary of each attorney $100,000 $110,000
Annual salary of each paraprofessional $ 29,000 $ 30,000
Total professional labor-hours 50,000 dlh 60,000dlh
21) What are the actual direct-cost rate and the actual indirect-cost rate, respectively, per professional labor-hour?
A) $27.00; $4.17
B) $29.80; $5.40
C) $32.40; $5.00
D) $27.00; $5.00
22) How much should the client be billed in an actual costing system if 200 professional labor-hours are used?
A) $5,000
B) $6,960
C) $7,480
D) $6,400
23) If indirect-cost rates were based on actual short-term usage, periods of lower demand would result in lower costs per unit.
24) In job costing, only direct costs are used to determine the cost of a job.
25) Indirect manufacturing costs should be allocated equally to each job.
26) Each cost pool may have multiple cost allocation bases.
27) Normal costing is a costing system that traces direct costs to a cost object by using
the actual direct-cost rates times the actual quantities of the direct-cost inputs.
