Chapter 5 Handout Problems

Chapter 5 Handout Problems - Practice 1 At the beginning...

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Unformatted text preview: Practice 1. At the beginning ofthc year. Lola. Inc. estimated that overhead would be $540,000 and direct labor hours would be 180300. At the end ot'the year. actual overhead was $6l6.000 and thch Were actually 205.200 direct labor hours. What is the overhead variance? l r‘ I . ¥ ‘ r . ., MC l. The document that lists the total cost for a singlejob is a job—order cost sheet materials requisition form time ticket purchase order none oFthesc ape-r: _n 2. Which ofthe following is the assignment process used with normal costing? 3. Actual direct materials. actual direct labor and actual overhead cost are assigned to products. bi Actual direct materials cost is assigned to products. but direct labor and overhead costs are assigned using predetermined rates. c. Actual direct labor cost is assigned to products‘ but direct material and overhead costs are assigned using predetermined rates d. Actual direct material and direct labor costs are assigned to products. but overhead costs are assigned using predetermined rates. c. all manufacturing costs are assigned using predetennincd rates 3. Using normal costing. which costs never enter the Workrin-Process account? Applied Overhead Actual Overhead Direct Materials Direct Labor All ol'tliese enter the account. 9.0-9.7? g at the beginning of the year: pany estimated the followin Total Testing1 Department 2‘ Mitchell's Softball Gloves Com Assembly Department $700000 Overhead $570000 $130000 Direct Labor Hours 142.500 32500 175.000 Machine Hours 32.000 65.000 97.000 ssembly department. direct labor hours are used to ntal overhead rates. 1n the a m. 6 hours are used to apply overhead in the testing departme Mitchell uses departme apply overhead. Maehin Actual data for August ls as follows: Assemblv Department lusting Department Maj Overhead 542.000 312.000 $54,000 Direct Labor Hours 13,500 1.430 15.930 1 1.000 15.020 Machine Hours 4.020 'firedéfemmeWhese two 9. Required: 77 V a z/Ilirififchelliuses dcpanmental overheaW sfio’ul’d e applied ore partmem? dcpat‘llnenls'?[l’l6w fifielmvmneaa'c—osr ,la , ,1 I, epal‘tmental et labor hnurs. instead of d erhead e051 ate based on dire 1? How much 0v twide overhead r b, If Mitchell uses a plan rates. what is the predetermined overhead rate rounded to the nearest cen should be applied for the whole plant? / / ‘5‘ 3. Stuth Inc. designs and builds basketball gymnasiums. Each gymnasium is custom—built to l individual customer‘s specifications. Stutz usesjob—order costing to keep track nfits costs. In February it worked on three jobs. Data for these jobs are as follows: Job 175 Job 178 Job 179 Balance 2/1 $13,790 $0 $0 Direct Materials 16,200 8,500 30,500 Direct Labor Cost 23,300 7,600 45,000 Machine Hours 400 300 2,000 Overhead is applied to jobs at the rate 01325 per machine hour. By February 28, Job 178 is the only one unfinished. The balance of Finished Goods on February l is $94000 (consisting ofan 177). Jobs 177. and 179 are sold during Februaiy. Stutz sells its product at cost plus 40%. a. How much is cost ol‘goods sold for February? What is sales revenue for February? b. Calculate the balance in 'Wurkin—Process on February 28. _,l ...
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Chapter 5 Handout Problems - Practice 1 At the beginning...

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