Question :
111.During 2013, Anhover Wedding Planners applied overhead using a job-order : 1302693
111.During 2013, Anhover Wedding Planners applied overhead using a job-order costing system at a rate of $3.25per direct labor hour. Estimated direct labor hours totaled220,000 and estimated overhead was $715,000 for the year.Actual direct labor hours for 2013totaled 215,000 and actual overhead was $702,000.What is the amount of under or over applied overhead for the year?
A.$13,000 overapplied
B.$13,000 underapplied
C.$16,250underapplied
D.$3,250 underapplied
112.Lnsing Productions estimated it would use $360 of materials and take 20 hours at$14.50 per hour to complete job 456. It calculated a predetermined overhead rate of $9.00 per direct labor hour. Job 456 required $380 of material and took employees a total of 19.25 hours at a cost of $15.20 per hour to complete the job. Actual manufacturing overhead costs totaled $223,000 for the year for the company. How much is the cost of Job 456?
A.$173.25
B.$553.25
C.$845.85
D.$823.25
113.OspreyProduction uses job-order costing for batches of customer printed t-shirts. For job R45, the company incurred the following costs:
Direct materials used $4,235
Direct labor $1,300
Applied overhead $450
Actual overhead for Osprey for the month totaled $24,840, based on a total of 2,300 shirts for the month. IfJob R45 consisted of 570 shirts, how much is the cost per shirt for this job?
A.$10.80
B.$14.95
C.$10.50
D.$15.25
114.Alex Constructors uses job-order costing for production of custom playground sets. The company incurred the following costs during March:
Direct materials used $22,000
Direct labor $14,000
Applied overhead $18,000
Actual overhead $20,000
If Alex Constructorscloses out any under or overapplied overhead directly to cost of goods sold, which entry will the company make to eliminate the over or underapplied amount in March?
A.Cost of Goods Sold 2,000
Work in Process Inventory 2,000
B.Manufacturing Overhead 2,000
Work in ProcessInventory 2,000
C.Manufacturing Overhead 2,000
Cost of Goods Sold 2,000
D.Cost of Goods Sold 2,000
Manufacturing Overhead 2,000
115.Assume that managers are rewarded for reducing product costs as calculated by the accounting system. In keeping with the theme that “you get what you measure,” if a company switches itsoverhead application basis from direct labor hours to machine hours, what would you expect to happen?
A.Machine hours will increase
B.Machine hours will decrease
C.Total costs will increase
D.Output will reduce
116.Why is overhead applied using a predetermined overhead rate?
A.The actual amount of overhead is not determineduntil yearend and the company desirestimely cost information.
B. Actual manufacturing overhead costs are often larger than expected.
C. It allows a company to overcost and undercost specific jobs as desired.
D. It helps to reduce the overhead cost for the company.
117.Brothers Construction uses a predetermined overhead rate of $6.00 per direct labor hour.Budgeted overhead was $720,000 and actual overhead incurred was $700,000.Actual direct labor hours worked were 125,000 hours.How many labor hours did Brothersplan to work duringthe year?
A.120,000 hours
B.116,667 hours
C.20,833 hours
D.Cannot be determined from the information given
118.Ansley Products applies overhead using a predetermined overhead rate.Overhead is applied based on direct labor hours. At the beginning of the year, it is estimated that $500,000 in overhead will be incurred and 25,000 hours will be worked. At year-end, the company had used 24,000 hours of labor, and actual overhead costs were $470,000. What can be concluded from this?
A.Cost control was good.
B.Overhead is overapplied by $10,000
C.Overhead is underapplied by $10,000
D.Overhead is applied at a rate of $19.58 per hour
119.If the amount of underapplied overhead or overapplied overhead is small in amount, the Manufacturing Overhead account is closed to
A.Raw Materials Inventory.
B.Work in Process Inventory.
C.Finished Goods Inventory.
D.Cost of Goods Sold.
