48) Intak Company uses a job costing system. The company's schedule of cost of goods manufactured showed the following amounts for November.
Cost of goods manufactured
|
$55,000
|
Cost of direct materials used
|
$29,000
|
Cost of direct labor ($9 per hour)
|
$13,500
|
Work in process inventory, November 1
|
$1,500
|
Manufacturing overhead cost is allocated at the rate of $6 per direct labor hour.
What is the amount of allocated manufacturing overhead costs for the month?
A) $29,000
B) $9,000
C) $13,500
D) $57,000
49) Intak Company uses a job costing system. The company's schedule of cost of goods manufactured showed the following amounts for November.
Cost of goods manufactured
|
$55,000
|
Cost of direct materials used
|
$29,000
|
Cost of direct labor ($9 per hour)
|
$13,500
|
Work in process inventory, November 1
|
$1,500
|
Manufacturing overhead cost is allocated at the rate of $6 per direct labor hour
Actual manufacturing overhead costs for September amount to $12,000.
What is the amount of work in process inventory on September 30?
A) $29,000
B) $56,000
C) $1,000
D) $5,500
50) Willy's Wagons manufactures custom carts for a variety of uses. The following data have been recorded for Job 531, which was recently completed. Direct materials used cost $12,900. There were 210 direct labor hours worked on this job at a direct labor wage rate of $20 per hour. There were 165 machine hours used on this job. The predetermined overhead rate is $32 per machine hour used.
What is the total manufacturing cost of Job 531?
A) $3,600
B) $12,30022,380
C) $2,400
D) $6,555
51) Job 2928 requires $38,000 of direct materials, $12,000 of direct labor, 700 direct labor hours, and 375 machine hours. Manufacturing overhead is computed at $15 per direct labor hour used and $12 per machine hour used.
The total cost of Job 2948 is:
A) $53,000.
B) $54,500
C) $38,000.
D) $65,000.
1) Overallocated overhead costs occur when the overhead costs allocated to work in process inventory are less than the amount actually incurred.
2) If manufacturing overhead has been underallocated during the year, it means the jobs have been overcosted.
3) If manufacturing overhead has been overallocated during the year, it means the jobs have been overcosted.
4) If the actual amount of the manufacturing overhead allocation base is greater than the estimated amount of the allocation base used to calculate the predetermined rate, then manufacturing overhead must have been underallocated.
5) The underallocation or overallocation of overhead is a direct result of using a predetermined manufacturing overhead rate rather than the actual manufacturing overhead rate.
6) The amount of overallocation or underallocation is found by taking the difference between the amount of overhead allocated during the year and the amount of overhead estimated for the year.