Quiz 5 - 1. Figure 5-10. At the beginning of the year,...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1. Figure 5-10. At the beginning of the year, Lola, Inc. estimated that overhead would be $540,000 and direct labor hours would be 180,000. At the end of the year, actual overhead was $616,000 and there were actually 205,200 direct labor hours. Refer to Figure 5-10. What is the overhead variance? Student Response Value Correct Answer Feedback 1. $400 overapplied 2. $76,000 overapplied 3. $76,000 underapplied 4. $400 underapplied 100% 5. none of these General Feedback: Predetermined overhead rate = $540,000/180,000 = $3 per direct labor hour Applied overhead = $3 205,200 = $615,600 Overhead variance = $616,000 - $615,600 = $400 Underapplied Overhead Score: 0.5/0.5 2. Which of the following can serve as a subsidiary for the finished goods inventory? Student Response Value Correct Answer Feedback 1. incomplete job-order Student Response Value Correct Answer Feedback cost sheets 2. All of these are subsidiaries for the finished goods inventory. 3. raw material inventory 4. work-in-process inventory 5. completed job-order cost sheets 100% Score: 0.5/0.5 3. Which of the following are easy to trace to individual jobs? Student Response Value Correct Answer Feedback 1. overhead and indirect labor 2. direct materials and overhead 3. direct materials and direct 100% Student Response Value Correct Answer Feedback labor 4. direct labor and overhead 5. depreciation on machinery and indirect labor Score: 0.5/0.5 4. Figure 5-2. Mitchells Softball Gloves Company estimated the following at the beginning of the year: Assembly Department Testing Department Total Overhead $570,000 $130,000 $700,000 Direct Labor Hours 142,500 32,500 175,000 Machine Hours 32,000 65,000 97,000 Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department. Actual data for August is as follows: Assembly Department Testing Department Total Overhead $42,000 $12,000 $54,000 Direct Labor Hours 13,500 2,430 15,930 Machine Hours 4,020 11,000 15,020 Refer to Figure 5-2. Mitchell decides to continue using departmental overhead rates. What are the predetermined rates for the Assembly and Testing departments respectively? Student Response Value Correct Answer Feedback 1. none of Student Response Value Correct Answer Feedback these 2. Assembly: $2 per direct labor hour; Testing: $4 per machine hour 3. Assembly: $4 per direct labor hour; Testing: $2 per machine hour 100% 4. Assembly: $7.22 per machine hour; Testing: $7.22 per machine hour 5. Assembly: $4 per direct labor hour; Testing: $4 per direct labor hour General Feedback: Assembly: $570,000/142,500 = $4 per direct labor hour Testing: $130,000/65,000 = $2 per machine hour Score: 0.5/0.5 5....
View Full Document

This homework help was uploaded on 04/15/2008 for the course ACCT 2020 taught by Professor Lui during the Spring '08 term at North Texas.

Page1 / 34

Quiz 5 - 1. Figure 5-10. At the beginning of the year,...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online