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1. McLaughin Corp. estimated manufacturing overhead costs to be $1,000,000. Throughout the period McLaughin Corp. allocated...

1. McLaughin Corp. estimated manufacturing overhead costs to be $1,000,000. Throughout the period McLaughin Corp. allocated (applied) $970,000 of manufacturing overhead. Actual manufacturing overhead costs turned out to be $1,010,000. McLaughin Corp.’s manufacturing overhead was

a. Underallocated by $30,000

b. Underallocated by $40,000

c. Overallocated by $10,000

d. Overallocated by $30,000

2. A company assigns overhead cost to completed jobs on the basis of 125% of direct labor cost. The job cost sheet for Job 313 shows that $10,000 in direct materials has been used on the job and that $12,000 in direct labor cost has been incurred. A total of 1,000 units were produced in Job 313. What is the cost per unit of product of job 313?

a. $31.60

b. $37.00

c. $22.00

d. $34.50

3. Which of the following companies is least likely to use a job-order costing system for the determination of costs?

a. Brenda’s Catering – caterer of wedding receptions and corporate training functions.

b. Home City Ice – manufacturers of bags of ice for consumer use (bags of ice for parties, etc.).

c. Smith and Hackett – law firm specializing in real estate and property law cases.

d. Pulte Homes – builder of custom manufactured homes.

4. A good description of “cost of goods manufactured” is the recorded cost of the:

a. Units started during the period.

b. Units started and finished during the period.

c. Units sold during the period.

d. Units finished during the period.

Business   Accounting   
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The answer has been presenetd in the supporting sheet. For detaile danswer refer to the supporting sheet.

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