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Exam 3: Job Costing

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Question 71

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Denver Company uses a job costing system. The work in process inventory on December 31 consisted of Job No. 173 with a balance of $66,900. Job No. 173 has been charged with manufacturing overhead costs of $20,500. Denver allocates manufacturing overhead costs at a rate of 50% of direct labor cost. What was the amount of direct materials charged to Job No. 173?

A) $10,250
B) $12,950
C) $5400
D) $7550

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Question 72

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Management can use job cost information to control costs on jobs produced in the future.

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Question 73

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The predetermined manufacturing overhead rate is calculated by multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base.

Zanny Moldings has the following estimated costs for the upcoming year: The company estimates that 1600 direct labor hours will be worked in the upcoming year, while 2100 machine hours will be used during the year. The predetermined manufacturing overhead rate per machine hour is closest to

The following account balances at the beginning of January were selected from the general ledger of Fresh Bagel Manufacturing Company: Additional data: 1) Actual manufacturing overhead for January amounted to $66,400. 2) Total direct labor cost for January was $63,400. 3) The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $250,900 of direct labor cost and $350,200 of manufacturing overhead costs. 4) The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $6200 (800 direct labor hours) and total direct material charges were $14,100. 5) Cost of direct materials placed in production during January totaled $123,600. There were no indirect material requisitions during January. 6) January 31 balance in raw materials inventory was $36,000. 7) Finished goods inventory balance on January 31 was $35,300. What is the predetermined manufacturing overhead rate?

Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: If Nadal Company uses direct labor hours as the allocation base, what would the allocated manufacturing overhead be for the year? (Round intermediary calculations to the nearest cent and the final answer to the nearest dollar.)

When job costing is used at a service firm

Which of the following types of costing is used for many similar products?

Serena Corporation uses estimated manufacturing overhead costs of $880,600 and estimated direct labor hours of 200,000 in establishing manufacturing overhead rates. Allocated manufacturing overhead was $1,012,100 and actual manufacturing overhead was $970,500. What were the number of actual direct hours worked? (Round intermediary calculations to the nearest cent and the final answer to the nearest dollar.)

Barefoot Running Company's work in process inventory on June 1 has a balance of $22,700 representing Job No. 265. During June, $50,100 of direct materials were requisitioned for Job No. 265 and $35,900 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at 115% of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $41,300. No new jobs were started during June. Job No. 265 is completed on June 28. What is the total cost assigned to Job No. 265?

Manufacturers follow four steps to implement a manufacturing overhead allocation system. In the first step, the company estimates its total manufacturing overhead costs for the coming year.

Calico Corporation produced 2,000 units in Job 903. The following data is provided for Job 903 for the year: What is the unit cost for Job 903? (Round to two decimal places.)

If manufacturing overhead has been underallocated during the year, it means the jobs have been undercosted.

Overallocated manufacturing overhead results when

In job costing, when raw materials are requisitioned for a job, the Raw Materials Inventory account is credited.

At a service company, the indirect costs of serving the client consists of operating expenses.

Which of the following is an example of an industry that would use a process costing-rather than a job costing-system?

Overallocated and underallocated manufacturing overhead is calculated by comparing estimated manufacturing overhead to actual manufacturing overhead.

________ laws , or "take-back" laws, create future costs associated with the production of electronic devices and require manufacturers of electronic devices to take back their products at the end of the products' useful lives.

Job order costing might be used by a