GNBExam03 - GNB 12e Practice Exam Chapter 3 Print these...

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GNB 12e Practice Exam – Chapter 3 Print these pages. Answer each of the following questions, explaining your answers or showing your work, as appropriate, and then compare your solutions to those provided at the end of the practice exam. 1. When is job-order costing typically used by a company? How does it differ from process costing? What documents are typically used in a job-order system? 2. Stephens, Inc. had the following estimated costs for next year: Advertising expense $ 88,000 Direct materials 120,000 Direct labor 440,000 Indirect materials 40,000 Rent on factory equipment 128,000 Sales commissions 600,000 Salary of production supervisor 280,000 The company estimates that 80,000 direct labor hours will be worked and 64,000 machine hours will be incurred during the year. If overhead is applied on the basis of machine hours, what will be the overhead rate per hour?
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3. Scotch Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $400,000 and direct labor hours would be 40,000. The actual figures for the year were $430,000 for manufacturing overhead and 42,000 direct labor hours. Is manufacturing overhead underapplied or overapplied for the year? By how much? 4. VirtualTech Company’s predetermined overhead rate is based on direct labor hours. At the beginning of the current year, the company estimated that its manufacturing overhead would
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This note was uploaded on 11/04/2009 for the course SBA ACC 2302 taught by Professor Ahmedbashir during the Spring '09 term at Al Akhawayn University.

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GNBExam03 - GNB 12e Practice Exam Chapter 3 Print these...

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