Question

Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:

Total machine-hours		31,800
Total fixed manufacturing overhead cost	$	159,000
Variable manufacturing overhead per machine-hour	$	2

Recently, Job T687 was completed with the following characteristics:

Number of units in the job		10
Total machine-hours		30
Direct materials	$	660
Direct labor cost	$	1,320

The unit product cost for Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

$87.00

$198.00

$219.00

$73.00

Beat Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:

Total machine-hours		40,000
Total fixed manufacturing overhead cost	$	344,000
Variable manufacturing overhead per machine-hour	$	3.90

Recently, Job M759 was completed. It required 60 machine-hours. The amount of overhead applied to Job M759 is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

$984

$234

$516

$750

Parido Corporation has two manufacturing departments--Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

	Casting		Assembly		Total
Estimated total machine-hours (MHs)		8,000		2,000		10,000
Estimated total fixed manufacturing overhead cost	$	44,000	$	4,200	$	48,200
Estimated variable manufacturing overhead cost per MH	$	1.90	$	3.00

During the most recent month, the company started and completed two jobs--Job A and Job H. There were no beginning inventories. Data concerning those two jobs follow:

	Job A		Job H
Casting machine-hours		5,400		2,600
Assembly machine-hours		800		1,200

Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. The amount of manufacturing overhead applied to Job H is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

$18,044

$8,328

$26,372

$18,316

Answer 1

Q1. Answer is $ 219
Explanation
Pre-determined OH rate:
Fixed Manufacturing OH rate (159000/31800):					5
variable Manufacturing OH rate					2
Pre-determined OH rate:					7
Unit Product cost:
Direct material		660
Direct labour		1320
OH (30 MH @7)		210
Total cost		2190
Units		10
Unit Product cost:		219
Q2.
Answer is $ 750
Explanation
Pre-determined OH rate:
Fixed Manufacturing OH rate (344000/40000):					8.6
variable Manufacturing OH rate					3.9
Pre-determined OH rate:					12.5
OH applied (60 MH @12.50):			750
Q3.
Answer is $26372
Explanation:
Pre-determined OH rate for Plant
Fixed Manufacturing OH rate (48200/10000):						4.82
variable Manufacturing OH rate (8000*1.90+2000*3.00)/10000						2.12
Pre-determined OH rate:						6.94
Pre-determined OH rate for Assembly
Fixed Manufacturing OH rate (4200/ 2000):				2.1
variable Manufacturing OH rate				3
Pre-determined OH rate:				5.1
manufacturing OH in Job H:
Total machine hours (2600+1200)				3800
OH rate				6.94
OH applied to Job H				26372