Question

# 1. Bramble Company estimates that annual manufacturing overhead costs will be \$809,000. Estimated annual operating activity...

1. Bramble Company estimates that annual manufacturing overhead costs will be \$809,000. Estimated annual operating activity bases are direct labor cost \$500,000, direct labor hours 50,000, and machine hours 100,000.

Compute the predetermined overhead rate for each activity base. (Round answers to 2 decimal places, e.g. 10.50.)

Overhead rate per direct labor Overhead rate per direct labor cost hour enter overhead rate per direct labor cost in percentages % \$enter overhead rate per direct labor hour in dollars \$enter overhead rate per machine hour in dollars

2. In March, Sheridan Company completes its only two jobs in process, Jobs 10 and 11. Job 10 cost \$26,600 and Job 11 \$37,000. On March 31, Job 10 is sold.

Record the completion of the two jobs and the sale of Job 10. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

3. A job order cost sheet for Sheridan Company is as follows.

 Job No. 92 For 2,000 Units Direct Direct Manufacturing Date Materials Labor Overhead 6,500 7,400 5,920 7,400 8,400 6,888 2,900 4,400 3,608 16,800 20,200 16,416
 Cost of completed job: Direct materials \$16,800 Direct labor 20,200 Manufacturing overhead 16,416 Total cost \$53,416 Unit cost (\$53,416 ÷ 2,000) \$26.71

On the basis of this data, answer the following questions.

(a) What was the balance in Work in Process Inventory on January 1 if this was the only unfinished job?

 Balance in Work in Process Inventory on January 1 \$enter the Balance in Work in Process Inventory on January 1 in dollars

(b) If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year? (Round answers to 0 decimal places, e.g. 55%.)

 Overhead rate Last year Current year enter overhead rate in percentages rounded to 0 decimal places % enter overhead rate in percentages rounded to 0 decimal places %

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