Question 4 question tco 2 sweet co uses budgeted

Question 4. Question :
(TCO 2) Sweet Co. uses budgeted overhead rates to apply overhead to
individual jobs. They use a system based on direct labor hours. Last
year, the company made the following estimates for this year.
Direct labor costs $45,000,000
Factory overhead costs $8,000,000
Direct Labor Hours 80,000
Machine Hours 105,000
(a) What is the budgeted overhead rate for the company?
(b) If Job #34567 had the following:
Material costs were $450,000;
Direct labor costs were $375,000;
Direct labor hours 20,000; and
Machine hours were 28,000,
then what is the total cost of Job #34567?
Student Answer: A. The budget is $6,400,000/80,000= $80. b. The job total for this
one is 500,000 + 450,000 + (80 x 25,000) = 2,000,000 + 950,000 =
$2,950,000
The budgeted overhead rate is $8,000,000 / 80,000 = $100. B. For this
job, the total costs would be 450,000 + 375,000 + (100 x 20,000) =
2,000,000 = $2,825,000.
Instructor
Explanation:
Points Received: 2 of 30
Comments: Missed parts a and b
Question 5. Question :
(TCO 3) Adnan Company uses process costing. At the beginning of the
month, there were 3,000 units in process, 70% complete with respect to
material, and 60% complete with respect to conversion costs. 20,000
units were started during the month and 20,000 units were completed.

The units in ending Work-In-Process Inventory were 90% complete with
respect to material and 30% complete with respect to conversion costs.
How many equivalent units will be used in calculating the cost per unit
for materials?
Points Received: 2 of 30
Comments: Analysis is of
Question 6. Question :
(TCO 6) Handy Display Company manufactures display cases to be
sold to retail stores. The cases come in three sizes: large, medium, and
small. Currently, Handy Display Company uses a single plant-wide
overhead rate to allocate its $3,357,800 of annual manufacturing
overhead. Of this amount, $1,000,000 is associated with the Large
Case line, $1,560,000 is associated with the Medium Case line, and
$1,485,000 is associated with the Small Case line. Handy Display
Company is currently running a total of 50,000 machine hours: 20,000
in the Large Case line, 24,000 in the Medium Case line, and 15,000 in
the Small Case line. Handy Display Company uses machine hours as
the cost driver for manufacturing overhead costs.