The accounting records of Bronco Company
revealed the following information:
Bronco's cost of goods manufactured is:
e. some other amount.
Dale Company, which applies overhead at the rate
of 190% of direct labor cost, began work on job no.
101 during June. The job was completed in July and
sold during August, having accumulated direct
material and labor charges of $27,000 and $15,000,
respectively. On the basis of this information, the
total overhead applied to job no. 101 amounted to:
Maher, Inc., applies manufacturing overhead at the
rate of $60 per machine hour. Budgeted machine
hours for the current period were anticipated to be
80,000; however, a lengthy strike resulted in actual
machine hours being worked of only 65,000.
Budgeted and actual manufacturing overhead
figures for the year were $4,800,000 and
$4,180,000, respectively. On the basis of this
information, the company's year-end overhead
a. underapplied by $900,000.
b. underapplied by $620,000.
c. underapplied by $280,000.
d. overapplied by $280,000.
e. overapplied by $620,000.
3 points (Extra credit)
Copley uses a weighted-average process-costing
system. All materials are added at the beginning of
the process; conversion costs are incurred evenly