Quiz 1 - Fall 2009 - solution

# Quiz 1 - Fall 2009 - solution - RSM222 Quiz #1 Solutions...

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RSM222 Quiz #1 – Solutions Fall 2009 Part A (2 marks each, 10 marks) 1. C 2. b 3. c 4. d 5. a explanation 1 - Raw materials, beginning inventory \$ 960 Raw materials purchased x 3,840 Raw materials, ending inventory (1,040) Raw materials used in production \$ 2,800 x = \$2,880 2 - Work in process, beginning inventory \$ 1,460 Finished goods, beginning inventory 960 Manufacturing costs added 16,000 18,420 Work in process, ending inventory (1,300) Finished goods, ending inventory (920 ) Cost of goods sold \$ 16,200 Part 2 ( 5 marks) 3200=FC+UVC*1400 2800=FC+UVC*1000 Solve the above two equations: UVC=\$1/machine hr, FC=\$1,800

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Part 3 ( 30 marks) 1) compute the predetermined overhead rate for the quarter (4 marks) estimated overhead cost \$ 150,000 estimated direct labour hours 1,500 hours predetermined overhead rate = \$ 100/hour 2) compute the amount of over-or-under applied overhead for the quarter (4 marks) Actual Manufacturing overhead costs : Rent \$ 12,500 Maintenance \$ 5,000 property taxes
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## Quiz 1 - Fall 2009 - solution - RSM222 Quiz #1 Solutions...

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