Reference no: EM132849180
Questions -
Q1. Harris Fabrics computes its plant-wide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 20,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $94,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 per direct labor-hour. Harris's actual manufacturing overhead cost for the year was $123,900 and its actual total direct labor was 21,000 hours.
Required - Compute the company's plantwide predetermined overhead rate for the year.
Q2. Luthan Company uses a plantwide predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $257,400 of total manufacturing overhead cost for an estimated activity level of 11,000 direct labor-hours.
The company incurred actual total manufacturing overhead cost of $249,000 and 10,800 total direct labor-hours during the period.
Required - Determine the amount of manufacturing overhead cost that would have been applied to all jobs during the period.
Q3. Mickley Company's plantwide predetermined overhead rate is $14.00 per direct labor-hour and its direct labor wage rate is $17.00 per hour. The following information pertains to Job A-500:
Direct materials $231
Direct labor $153
Required -
1. What is the total manufacturing cost assigned to Job A-500?
2. If Job A-500 consists of 40 units, what is the unit product cost for this job?
Q4. Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $16.00 per direct labor-hour and $12.00 per direct labor-hour, respectively. The company's direct labor wage rate is $20.00 per hour. The following information pertains to Job N-60:
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Assembly
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Testing & Packaging
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Direct materials
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$340
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$25
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Direct labor
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$180
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$40
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Required -
1. What is the total manufacturing cost assigned to Job N-60?
2. If Job N-60 consists of 10 units, what is the unit product cost for this job?
Q5. Braverman Company has two manufacturing departments-Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $18.00 per direct labor-hour and 110% of direct materials cost, respectively. The company's direct labor wage rate is $16.00 per hour. The following information pertains to Job 700:
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Finishing
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Fabrication
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Direct materials
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$410
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$60
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Direct labor
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$128
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$48
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Required -
1. What is the total manufacturing cost assigned to Job 700?
2. If Job 700 consists of 15 units, what is the unit product cost for this job?
Q6. Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production 165,000
Fixed manufacturing overhead cost $1,980,000
Variable manufacturing overhead cost per machine-hour $2.00
Required -
1. Compute the plantwide predetermined overhead rate.
2. During the year, Job P90 was started, completed, and sold to the customer for $2,500. The following information was available with respect to this job:
Direct materials $1,150
Direct labor cost $830
Machine-hours used 72
Compute the total manufacturing cost assigned to Job P90.