POST ACC211 Unit 2 Quiz C2 Job-Order Costing

| June 9, 2016

Question
QUESTION 1

Correct applied overhead exceeds actual overhead.

Correct applied overhead exceeds actual overhead.

applied overhead exceeds estimated overhead.

actual overhead exceeds estimated overhead.

budgeted overhead exceeds actual overhead.

Question 2

Malcolm Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.

The cost records for September will show:

Overapplied manufacturing overhead of $1,500

Underapplied overhead of $1,500

Overapplied manufacturing overhead of $3,500

Underapplied overhead of $3,500

Question 3

The Collins Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and machine-hours in Dept. B. At the beginning of the year, the company made the following estimates:

What predetermined overhead rates would be used in Dept A and Dept B, respectively?

71% and $4.00

140% and $4.00

140% and $4.80

71% and $4.80

Question 4

Kelsh Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year:

Kelsh estimates that 5,000 direct labor-hours and 10,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be:

$6.80

$6.40

$3.40

$8.20

Question 5

The actual manufacturing overhead incurred at Hogans Corporation during April was $59,000, while the manufacturing overhead applied to Work in Process was $74,000. The company’s Cost of Goods Sold was $289,000 prior to closing out its Manufacturing Overhead account. The company closes out its Manufacturing Overhead account to Cost of Goods Sold. Which of the following statements is true?

Manufacturing overhead was overapplied by $15,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $274,000

Manufacturing overhead was underapplied by $15,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $274,000

Manufacturing overhead was overapplied by $15,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $304,000

Manufacturing overhead was underapplied by $15,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $304,000

Question 6

Bakker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $77,250 and 2,500 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $79,000 and actual direct labor-hours were 2,400.

The applied manufacturing overhead for the year was closest to:

$74,160

$71,184

$75,840

$79,008

Question 7

Acitelli Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.

Estimated manufacturing overhead $357,000

Estimated machine hours 8,500

Actual manufacturing overhead $358,000

Actual machine hours 8,560

The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company’s predetermined overhead rate for the year.

The predetermined overhead rate is closest to:

$42.30

$41.82

$42.12

$42.00

Question 8

Carter Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $135,850. Actual manufacturing overhead for the year amounted to $145,000 and actual machine-hours were 5,660. The company’s predetermined overhead rate for the year was $24.70 per machine-hour.

The overhead for the year was:

$5,198 overapplied

$3,952 underapplied

$3,952 overapplied

$5,198 underapplied

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