# If job 461 contained 100 units the unit cost on the

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Chapter 23 / Exercise PR 23–1A
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
87. If Job #461 contained 100 units, the unit cost on the completed job cost sheet would be: A) \$61.75 B) \$62.50 C) \$63.10 D) \$55.00 Solution: Estimated total manufacturing overhead ...................... \$50,000 ÷ Estimated total direct labor-hours (DLHs) ................ 20,000 DLHs = Predetermined overhead rate ..................................... \$2.50 per DLH Job #461 Costs: Materials ............................................ \$4,000 Labor .................................................. 1,500 Manufacturing overhead (300 DLHs* × \$2.50 per DLH) ....... 750 Total cost ............................................ \$6,250 ÷100 units \$62.50 per unit cost *\$1,500 total labor cost ÷ \$5 per hour = 300 DLHs
88. The manufacturing overhead for the year was:
Use the following to answer questions 89-91: Acheson Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations. Estimated manufacturing overhead ............ \$157,050 Estimated machine-hours ........................... 4,500 Actual manufacturing overhead ................. \$156,000 Actual machine-hours ................................ 4,580 The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year.
##### We have textbook solutions for you!
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Chapter 23 / Exercise PR 23–1A
Financial and Managerial Accounting Using Excel for Success
Reeve/Warren
Expert Verified
89. The predetermined overhead rate is closest to:
90. The applied manufacturing overhead for the year is closest to:
91. The overhead for the year was: A) \$2,792 underapplied B) \$3,842 overapplied C) \$2,792 overapplied D) \$3,842 underapplied Solution: Estimated total manufacturing overhead ...................... \$157,050 ÷ Estimated total machine-hours (MHs) ....................... 4,500 MHs = Predetermined overhead rate ..................................... \$34.90 per MH Applied manufacturing overhead = Predetermined overhead rate × Actual machine-hours Applied manufacturing overhead = \$34.90 × 4,580 = \$159,842 Actual manufacturing overhead ............... \$156,000 Applied manufacturing overhead ............ 159,842
Overapplied manufacturing overhead ..... (\$ 3,842 ) Use the following to answer questions 92-94: 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 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to \$242,000 and actual direct labor-hours were 4,600. 92. The predetermined overhead rate for the year was closest to: