Question : Answer the following questions using the information below: Joni’s Kitty Supplies : 1217177

 

Answer the following questions using the information below:

 

Joni’s Kitty Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of the Toy Mouse product. Estimates for this order include: Direct materials $40,000; 500 direct manufacturing labor-hours at $20 per hour; and a 20% markup rate on total manufacturing costs.

 

21) Estimated total product costs for this special order equal:

A) $96,000

B) $50,000

C) $80,000

D) None of these answers is correct.

 

22) The bid price for this special order is:

A) $50,000

B) $60,000

C) $80,000

D) $96,000

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

 

23) The amount of manufacturing overhead allocated to all jobs during June 2010 totals:

A) $38,500

B) $52,500

C) $55,000

D) $100,000

 

24) For June 2010, manufacturing overhead was:

A) overallocated

B) underallocated

C) neither overallocated nor underallocated

D) indeterminable

Answer the following questions using the information below:

 

Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 20X3, the following estimates were provided for the coming year:

 

MachiningAssembly

Direct labor-hours              30,000              60,000

Machine-hours              80,000              20,000

Direct labor cost              $500,000              $900,000

Manufacturing overhead costs              $420,000              $240,000

 

The accounting records of the company show the following data for Job #316:

 

MachiningAssembly

Direct labor-hours              120              70

Machine-hours              60              5

Direct material cost              $300              $200

Direct labor cost              $100              $400

 

25) For Bauer Manufacturing, what is the annual manufacturing overhead cost-allocation rate for the Machining Department?

A) $4.00

B) $4.20

C) $4.67

D) $5.25

 

26) What amount of manufacturing overhead costs will be allocated to Job #316?

A) $439

B) $502

C) $595

D) $532

27) What are the total manufacturing costs of Job #316?

A) $715

B) $880

C) $1,595

D) $1,000

 

Answer the following questions using the information below:

 

Wayland Manufacturing uses a normal cost system and had the following data available for 2010:

 

Direct materials purchased on account              $ 148,000

Direct materials requisitioned              82,000

Direct labor cost incurred              130,000

 

Factory overhead incurred              146,000

Cost of goods completed              292,000

Cost of goods sold              256,000

 

Beginning direct materials inventory              26,000             

Beginning WIP inventory              64,000

Beginning finished goods inventory              58,000

Overhead application rate, as a percent of direct-labor costs              125percent

 

28) The journal entry to record the materials placed into production would include a:

A) credit to Direct Materials Inventory for $82,000

B) debit to Direct Materials Inventory for $148,000

C) credit to WIP Inventory for $82,000

D) debit to WIP Inventory for $148,000

29) The ending balance of direct materials inventory is:

A) $92,000

B) $174,000

C) $82,000

D) $108,000

 

30) The ending balance of work-in-process inventory is:

A) $438,500

B) $146,500

C) $130,000

D) $422,000