81. Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. At the end of the period, the records show that there had been 180,000 hours of direct labor and $1,200,000 of actual overhead costs. Using direct labor hours as the allocation base, calculate the under- or overapplied overhead for the period.
A. $150,000 overapplied.
B. $150,000 underapplied.
C. $300,000 underapplied.
D. $300,000 overapplied.
E. $200,000 underapplied.
82. The R&R Company's manufacturing costs for August are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; taxes on raw materials and work in process, $800; heat, lights, and power, $1,000; and insurance on plant and equipment, $200. R&R Company's factory overhead incurred for August is:
A. $2,000
B. $6,500
C. $8,500
D. $21,500
E. $36,500
83. Deltan Corp. allocates overhead to production on the basis of direct labor costs. If Deltan's total estimated overhead is $450,000 and estimated direct labor cost is $180,000, determine the amount of overhead to be allocated to finished goods inventory. There is $20,000 of total direct labor cost in the jobs in the finished goods inventory.
A. $8,000
B. $20,000
C. $70,000
D. $50,000
E. $90,000
84. A company allocates overhead to production on the basis of direct labor cost. If the company’s total estimated overhead is $870,000 and estimated direct labor cost is $1,160,000, determine the amount of overhead to be allocated to finished goods inventory. There is $791,000 of total direct labor cost in the jobs in the finished goods inventory.
A. $1,054,667
B. $593,250
C. $1,275,853
D. $1,079,482
E. $79,000
85. The Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,400 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $2,000 and direct labor cost of $800. Therefore, the company's overhead application rate is:
A. 40%
B. 50%
C. 80%
D. 200%
E. 220%
86. The Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $7,750 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $6,000 and direct labor cost of $1,000. Therefore, the company's overhead application rate is:
A. 10.7%
B. 75.0%
C. 133.0%
D. 90.3%
E. 111.0%
87. Using the following accounts and an overhead rate of 90% of direct labor cost, determine the amount of applied overhead.
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Goods in Process Inventory
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Finished Goods Inventory
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Beg. Bal. 17,600
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Beg. Bal. 5,200
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D.M. 52,800
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201,520
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D.L. ?
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|
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O.H. ?
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F. G. ?
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End. Bal. 36,080
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A. $79,200
B. $167,200
C. $34,320
D. $88,000
E. $35,376
88. Using the following accounts and an overhead rate of 80% of direct labor cost, determine the amount of applied overhead.
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Goods in Process Inventory
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Finished Goods Inventory
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Beg. Bal. 53,000
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Beg. Bal. 9,000
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D.M. 48,000
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200,000
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129,000
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D.L. ?
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O.H. ?
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F. G. ?
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End. Bal. 36,000
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End. Bal. 80,000
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A. $135,000
B. $75,000
C. $60,000
D. $101,000
E. $17,000
89. If one unit of Product X used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale?
A. $8.00
B. $5.50
C. $2.50
D. $1.60
E. $0.90
90. If one unit of Product X used $.75 of direct materials and $6.00 of direct labor, sold for $12.00, and was assigned overhead at the rate of 20% of direct labor costs, how much gross profit was realized from this sale?
A. $12.00
B. $6.75
C. $.75
D. $1.20
E. $4.05