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Unformatted text preview: 3k Exam Page 1 of8 Imary :63 auiornaiioatéy oon‘spuéed _ _ :Jr exafim Gradegg far eggay Date and Time Started: 111201‘2016 5:4?i23 PM rid fiQ‘rTSfl'HEni3 from your Time Spent: 22 h . 16 min , 41 secs '8 am {he ”Deiaéifi” SaCfif-fif‘i Points Received? 24 I 32 (75°24) rise: 355 {if iflueetieee. r ‘33» {Ear-reef; dice 1 6 1 2 5 - Ail Questions 1 : Forbes Company uses a predetermined overhead rate based on direct iabor—hours to apply manufacturing overhead to jobs. At the beginning of the period, the company estimated manufacturing overhead would be $18,000 and direct labor—hours would be 1 5,000. The actual figures were $19,500 for manufacturing overhead and 16,000 direct iabonhours. The cost records for the period will Show: .1 3%? S-‘Jv er: I overapplied overhead of $300 = overapplied overhead of $1 ,500 underappiied overhead of $1 500 9»? underapplied overhead of $300 ' EX;T§E‘L.3‘EE§€§QT§1 $18, 000 f 12, 000 m $1.20 per direct labor hour predetermined rate $1 20 x 16, 000 actual hours = $19, 200 applied overhead $19, 500 actual overhead— $19, 200 applied overhead = $300 underappiied. (“m/N ,, ,H, ‘\,/'\ f ‘w 3““; Received; 2 of 2 ents: Avery Co. uses a predetermined overhead rate baeed on direct labor— hours to appiy manufacturing overhead to jobs. For the month of October, Avery's estimated manufacturing overhead cost was $300,000 based on an estimated activity level of 100,000 direct laborwhours, Actual overhead amounted to $325,000 with actual direct iabor—hours totaling 1 10,000 for the month. How much was the overapplied or underapplied overhead? FESWé‘“ ”3 $25,000 overappiied $25,000 underapplied ,5 $5,000 overapplied ”353 KS; $5,000 underappiied Eixgiianaiiam: $300,000 I100,000 direct labor hours = $3 per direct labor hour predetermined rate 1 1 0,000 x $3 per direct labor hour = $330,000 appiied Actual $325,000 — Applied $330,000 = ($5,000) overapplied Received: 0 of 2 H1155: Heifer Cannery, inc. uses a predeternfiined overhead rate based on machine-hours to appiy manufacturing overhead to jobs. The company 5x1.ccollege.(:omx‘él‘JEXTQGegéfi7obb5))/Main/CourseMode/StuderflGra.., 1. 1/30/2016 1k Hazarn Page. 2 of 8 estimated that it would incur $510,000 in manufacturing overhead during the year and that it would \Nork 1 00,000 machinenhours. The company actueily worked 105,000 machine—hours and incurred $540,000 in manufacturing averhead caste. By how much was manufacturing overhead undefappiied or overapptied for the year? 7“ i ‘i any 1 z‘ ' $4,500 overappiied $4,500 underapplied 3530\000 overappiied ‘51} $30,000 underapplied . SixgfigafEéiiifiit‘ $520,000 f 100,000 machine heurs = $510 per machine hour predetermined rate 105,000 machine houre x $5.10 per heur = $535,500 applied Actuai overhead $540,000 — Applied overhead $535,500 = $4.500 underapplied Received: 2 of 2 ants: Brusveen Corporation applies manufacturing overhead to jobs on the basis of direct labor—hours. The following information relates to Brusveen for last year: iii-St; :‘n sited ,:’-‘ic£ 11:13 E"I}irecl iainwrehnurfi .......................... 1 5,000 i 4,8061- E‘uianuflaeturéng everhcafi Gee! H . . . . . $300,000- 3287; 1 20- What was Bruaveen's underapplied or overapplied overhead for last year? Ki‘iawfiri 1,} $4,000 underappiied ‘ $8,880 underappiied “d! $8,880 overappiied {:3 $9,000 underapplied {éxyfieeatiest $300,000 / 15,000 direct labor hours = $20 per direct iabor hour x 14,800 actual hours = $296,000 eppiied $287,120 actual — $296,000 appfied = ($8,880) overapplied Received: 2 of 2 ants: Linh Corporation applies manufacturing overhead to jobs on the basis of pounds: of direct materiai used, Linh estimated 160,000 pounds of inatariai usage and $200,000 of manufacturing overhead cost for the year, During the year, Linh actually used 150,000 pounda of materiai and incurred $171,000 of manufacturing overhead cost. What was; Linh's underapplied or overappiied overhead for the year? ' $12,500 underappiied $16,500 overapplied $17,600 underappiied $29,000 overappiied ; $200,000 / 180,000 ibs = $1.25 per pound 150,000 paunds x $125 a $187,500 afipiied :xtecolicgexorn/{bfi 13X'1‘(66965”76bb5)y’l‘vtain/COursei‘x/icdc/Studentfira... E 1/3 'V20 1 6 1k Exam"; Page 3 of 8 Actual overhead $171 ,000 - Appiied overhead 33'! 87,500 = ($16,500; overapplied Received: 2 of 2 erfie: Darrow Corhpany uses a predetermined overhead rate based on direct iabor—hours to apply manufacturing overhead to jabs. Last year, the company worked 10,000 direct labor—hours and incurred $80,000 of actual manufacturing overhead cost. if overhead was underappiied by $2,000, the predetermined overhead rate for the company for the year rnuSt have been: Taflavvar ,ge {j} $7.80 M (#23 $8.00 {3.7; $8.20 {CD $8.40 ‘ Expéawafiem: $80,000 Actual manufacturing overhead - ? Applied manufacturing overhead = $2,000 underappiied Applied manufacturing overhead = $78,000 10,000 direct labor hours x ‘? Predetermined overhead rate a $78,000 applied manufacturing overhead ? Predetermined overhead rate = $78,000 I 10,000 direct labor hours Predetermined overhead rate a $7.80 Receivedr - I H 0 of 2 V N N ants: Reamer 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: [Direct tnafieriaie ---- - ........ $1 ,{ifl’t} {Direet label? -‘ $3,000 Sales: egatntnigsierzm -- $44300 Salary ofprociuctien superviv‘ser - $32,609 indirect reaterieia......,_.................m,..m”Hum.-. 5340-0 :K-dvettiaiflg expefiae ..................................... 380%.} Rent en {hater-y eniuiguncnl ...... ,,,,, .9 $1 .0002} Reamer estimates that 500 direct labor—hours and 1,000 machine—hours will be worked during the year. The predetermined overhead rate per hour will be: .rxewer: CD $6.80 {1:} $6.00 ’ $3.00 a {in} $3.40 .::<;:>¥erizstéea Estimated manufacturing overhead = $2,000 salary of production supervisor + $400 indirect materials + $1,000 rent on factory equipnfient = $3,400 $3,400 1 1,000 machine hours $3.40 per machine hour Predeternfined overhead rate Predetermined overhead rate H H :xtecoi legc.c:om/(N WN’IIGQQéS 76bb5 )j/h/i’ain/‘Ceursel’vlode/‘8 i‘udenzCrra. . . 1 3/3 0/2016 Page 4 of 8 nk Exam) Received: 2 of? efits: Washtenaw Corporation uses a job—order coating system. The foiiowing date are for East year: Efisiisneted iiireet Ember-heure ........................ q . .. , , . x . , . .. . . .. E 13.313 00 Eistitnated m anufiietmi mg {Inferheaéi casts; ........................ $39-0“!le fixetua! direct létieernhmurs -,Wm-- 11.63531543- jhsfluai manufiiet LIFE Hg: (Tr vcrheafi meets . . . . -_ . _ . . . . . . . . . . t . . . .. ....... 23.3 "3-01%."! Washtenaw applies overhead using a predetermined rate based on direct Iabor-hours. What amount of overhead was, applied to jobs East year? “'1- $WB5” if} $39,050 {:5- $42,600 an? (sip?) $35,750 /*“a KW: $36,960 Eixgtieme ice: Predetermined overhead rate = $39,000 / 12,000 direct labor hours = $3.25 per direct labor hour 11 .000 actuai direct labor hours x $3.25 N Applied manufacturing overhead predetermined rate Appiied manufacturing overhead — $35,750 Received: H I ”2 of2 ants; The Silver Company uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and on machine~hours in Dept. B. At the beginning of the year, the company made the foliowing estimates: 13:39! .3. I.) apt E3 IDireet lab-or ext-st. _ . .. . . . . -....._ . . . . . . . . _ . ZSGEEGGE} $48,831} EE-‘i'anufiieiuring {FVCfi’E‘flL’v-‘élt‘j W. A . . . . . . . . . t $90.09G S4 5 .000 EDireet iahordanwa u--. (fiEjE'RHF ‘JJHIG hing: hints she en’s “ . . . . . . . . . . .7 ......... , ............ 213206! .1, fixitfl} What predetermined overhead rates wou¥d be used in Dept A and [Dept B, respectively? newer: 1:} 670%; and $3.00 CD 150% and $5.00 w“ (3?? 150% and $3.00 C3 67% and $5.00 Expéz E’ié‘i’éifli'il Dept A: $90,000 I $60,000 = 150% of direct labor cost Dept E3: $45,000 / 15,000 = $3.00 per r‘riachine heur Received: 2 of 2 nts‘. 2x1..ecei§c:ge.conl/‘(NEX’I‘(6€96576bb5)}/I\/Iain/(Jourseh’lade/StudentCirc 1 1 £30120 1 6 3k Exanl Page 5 of 8 :The foliawing information relatea to Araceli Manufacturing Cempany: ‘i‘eifafl eeiiazated’meaafim-tufing, (awerheae maxi; mi {émginning of“ yea-11* ......... .fi ........................................................... a . , M . I .. m . $364,0fifi f‘rcchtcamin-ed everhcad rats: {based an machine-E‘rcura} $71281 per hear “feta-i In gratified: firing overhead sweat. inc unwed firming the year $83 Sailfii} '1'"as:31;fl nlnucizinc-‘haura incurred during the; year .......... ”m.-. i l SAME) hours What was Araceli‘s underapplied er overappiied overhead for last year? line-wee": 5;} $35,400 overapplied W is) $35,400 underapplied 1:} $154300 underapplied =13} $21,000 overapplied ' fixaianatien: 1 18,000 hours x 857.20 per hour a $849,600 Applied manufacturing overhead $885,000 Actual manufacturing overhead — $849,600 Applied manufacturing overhead = $35,400 underapplied Received; I I - 2 of 2 ants: Wayne Company's beginning and ending inventories for the month of June were as follows: E’s-Hie i 731mg: 3% 'fii’ark in ij‘rue-eaa .-..--.-......- at4531~zm $3. 7‘1,{}(K} Eriniehcd {firmed-S .. “.1 . . . , I A i A ; . . l . 31’? 5.13150 5:3?8i3flfl- Production data for the month follow: Ibire-at intmr coat ificurred ........... . ........................... f ...... .. . h. $’2£}0-f}{}fi= IDErccE Eaiwr‘rwhoura . . ‘ . . uwuuudu.--‘ A W. M.--‘ 25,{3{}€3 gin/1; nail II! a nufiamlufing overhead {Janet i'flfllifi"$d ________________ $1 3 2.1,“: {if} {ifirazc-E :natcmiaie ........ . ................. WUHHHWKHHHH“Nu“.‘lfluflms $i?fl_{i{§fi Wayne applies manufacturing overhead coat to jobs based on direct labor- hcurs, and the predetermined rate is $5.75 per direct labor—hour. The company does not close underapplied or overapplied manufacturing overhead to Cost of Goods Sold until the end of the year What is the amount of cost of goods manufactured? *‘WEWE‘W 5,} $508,750 $502,000 , $585.000 '15 {9;} $487,750 ration: Schedule of Cost of Goods Manufactured: Direct materials $170,000 Direct labor $200,000 Manufacturing overhead applied f($5.75 x 25,003) L Total manufacturing costs 3:51 3:750 J :‘rXfl-zfil’i A :xt.ecolicge.con1/{N EX'1‘(6e965’76bb5))/T\/Iain/Coursel\fiotic/Studenflfii‘am . . l 1 /3 0/2 0 1 6 1k Exam Received: ente; a.i"§$‘ift’13i" , Exeéanatgon: Receivedr ants: {A :xt.eoollege fixg‘} E131"! 2321101 Page (3 of 8 + VVcrk in process beginning $145,000 1: $558,750 — Ending work in process $171,000 = Cost of goods manufactured 348?,750 2of2 Buzhardt Inc, which uses jobuorder costing, has provided the following data for February: 3333;112:113: ifilflffit'ifiEfi . - $03,000 {Eh-“$01". lake-r newt ............... 1 .......... . ............. 3331 -001} hianuihcturing averheacf 0103!." inflamed ...... $45,000 h‘fanufimclm’ing even-head meet eppiiefl . . . .. 31E 14057.3(} Invcruerics: Beginning Ending Efirefk in pregame 1.,” $1 1 3,9053 $21 130?) Finished agenda $452,000 $43,000 The cost of goods manufactured for February is Closest to: {:3 $185,000 <3 $189,000 41* <10} $175,000 (3 $179,000 Manufacturing costs: Direct materials $63,000 + Direct labor $81,000 + Manufacturing overhead applied $41,000 = Totai manufacturing costs $185,000 4» Beginning work in process inventory $1 1,000 — Ending work in process inventory $21,000 = Cost of goods manufactured $175,000 20f2 Baka 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 $239,700 and 4.700 eetirnated direct laborwhours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct laborv hours were 4,600. The predetermined overhead rate for the year was closest to; <0 $52.61 C2? $49.91 w {.3 $51.00 {L} $51.49 Estimated tota£ manufacturing overhead $239,700 / Estimated total direct iabor hours 4,700 direct labor hours; x $51 00 per direct 1aber hour .con1/'(NEXT(éeQGS3761:3135))x’h’fainfCourseh/IodefStuden“Gram . '3 E {LEO/’20 I 6 3k Exanl Page 7 of 8 Received: 2 of 2 tents: Hamilton Company uses job—order costingt Manufacturing overhead is n : spotted using a predetermined rate of ‘l 50%; of direct labor cost. Any under—applied or overapplied manufacturing overhead is cicsed to Cost of Goods Sold at the end of each month. Additional information is avaiiable as foiéows: C Job 101 was the oniy job in process at January 31“ The job cost sheet for this job contained the foliowing costs at the beginning of the month: Effiircot mate-riais .. .,t-_.. ., , , _ . . . ., . . m.-......_.. $41.30“ Ifiirect labor ................................... ............. $2,000 s‘kpptied u‘tanflfiteturi 11g. overt: sad . . , , . . ““4- , ‘BKHBG ° Jobs 102, 103, and 104 were started during February. 0 Direct materials requisitions for February totaled $26,000; ° Direct labor cost of $20,000 was incurred for February. ° Actual manufacturing overhead was $32,000 for February. ° The oniy job still in process at February 28 was Job 104, with costs of $2,800 for direct materials and $1,800 for direct labor. The cost of goods manufactured for February was: RFiS‘rfiit'ffi': J C} $77 700 {:3 $78,000 1R 5!?) $79,700 {3:} $85,000 Exgjia‘iiatiifbflf Beginning Work in process a Direct materiais $4,000 + Direct labor $2,000 + Manufacturing overhead $3,000 =r— Work in Process, Feb 1 $9,000 Ending Work in process = Direct materials $2,800 + Direct labor $1,800 + Manufacturing overhead (150%: x 1.800) $2.700 = Totaf ending work in process $7,300 Raw materials used in production $26,000 + Direct labor $20,000 + Manufacturing overhead appiied (150% x 20,000) $30,000 = Total manufacturing costs $76,000 + Work in process, beginning $9,000 m $85,000 — Work in process, ending $7.300 = Cost of goods manufactured $77,700 Received: 0 of 2 :nts: Toan inc. uses a jobworder costing system in which any under-applied or overappiied overhead is closed to cost of goods sold at the end of the month. in September the company completed job 880M that consisted of 23,000 units of one of the company‘s standard products. No other jobs were in process during the month. The job cost sheet for job $80M shows the foifowing costs: :xtecoi]agecon‘r/(N tiX’i"(6c96576bb5})/Main/Courseh/I'odeffitudcntfir3 .,- 1 Ti £30,520} 5 pk Exain Beginning baianw“. ................................... EDiHyat Luann/minisu."”Hum“...-l..,,..‘.w..«.,..-....,» {fiizrwi Lamar avg! “‘4“ - Eviafi zJihqi-wing {aver hafid - await agpiifid' u. ,4 “- x h *- fiffi f; . "yflfl 3494,, 5 my $1 53* mm ,.$a§59...3 (2.2;;- Page 8 0f 8 During the month, the actua: manufacturing overhead cost incurred was $2‘FGfQZO and 3:000 completed units from job $80M were sold. No other products were said during the month. The unit product cast foij 380M is closest to: C} $31.30 #- {3 $4330 fit {IE} $329.9? i737: $329.67 ‘ Expéafl'saiéarl‘ Beginning balance $66,700 Received: ants: \?3§§%*JFEFZ Received: ants: splayefi in 3x1. ecollege . com/IN F?”><"}."(6€965 Ti‘ébbfx HIE/Ea im’(30ur$eMIGd a/StudentGra . K . + Direct materials $494,500 + Direct labor cost $1 58,700 + Manufaaturing overhead applied $269,1 00 *' Total manufacturing cost For this job $989,000 I Total number cf units produced 23,000 = $43 unit cost 00f? An effective ERM program would include coverage of broad risk categories, including: 5:3 legal and regulatory risks (3 risk of l0$se$ due to natural disasters (:9 risk of IT operations failures an? {5} all of the above 20f2 {GMTwOT1GO} Mountain Tm“? (US <3: Canada) 11/30/201 6 ...
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