Question 1 Figure 5-2. Mitchell’s Softball Gloves Company estimated the followin
ID: 2441730 • Letter: Q
Question
Question 1
Figure 5-2.
Mitchell’s Softball Gloves Company estimated the following at the beginning of the year:
Assembly Department
Testing Department
Total
Overhead
$570,000
$130,000
$700,000
Direct Labor Hours
142,500
32,500
175,000
Machine Hours
32,000
65,000
97,000
Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department.
Actual data for August is as follows:
Assembly Department
Testing Department
Total
Overhead
$42,000
$12,000
$54,000
Direct Labor Hours
13,500
2,430
15,930
Machine Hours
4,020
11,000
15,020
Refer to Figure 5-2. If Mitchell uses a plantwide overhead rate based on direct labor hours, instead of departmental rates, what is the predetermined overhead rate rounded to the nearest cent?
Answer
a
$5 per direct labor hour
b
$7.22 per machine hour
c
$4 per direct labor hour
d
$2.57 per direct labor hour
e
.52 per direct labor hour
Question 2
Figure 5-2.
Mitchell’s Softball Gloves Company estimated the following at the beginning of the year:
Assembly Department
Testing Department
Total
Overhead
$570,000
$130,000
$700,000
Direct Labor Hours
142,500
32,500
175,000
Machine Hours
32,000
65,000
97,000
Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department.
Actual data for August is as follows:
Assembly Department
Testing Department
Total
Overhead
$42,000
$12,000
$54,000
Direct Labor Hours
13,500
2,430
15,930
Machine Hours
4,020
11,000
15,020
Refer to Figure 5-2. Using Departmental overhead rates, which of the following is correct?
Answer
a
Applied overhead for the assembly department is $54,000
b
Applied overhead for the testing department is $4,860.
c
Applied overhead for both departments combined is $63,720
d
Overhead for the assembly department is underapplied.
e
none of these
Question 3
Figure 5-2.
Mitchell’s Softball Gloves Company estimated the following at the beginning of the year:
Assembly Department
Testing Department
Total
Overhead
$570,000
$130,000
$700,000
Direct Labor Hours
142,500
32,500
175,000
Machine Hours
32,000
65,000
97,000
Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department.
Actual data for August is as follows:
Assembly Department
Testing Department
Total
Overhead
$42,000
$12,000
$54,000
Direct Labor Hours
13,500
2,430
15,930
Machine Hours
4,020
11,000
15,020
Refer to Figure 5-2. Mitchell decides to continue using departmental overhead rates. What are the predetermined rates for the Assembly and Testing departments respectively?
Answer
a
Assembly: $4 per direct labor hour; Testing: $2 per machine hour
b
Assembly: $2 per direct labor hour; Testing: $4 per machine hour
c
Assembly: $4 per direct labor hour; Testing: $4 per direct labor hour
d
Assembly: $7.22 per machine hour; Testing: $7.22 per machine hour
e
none of these
Question 4
Figure 5-2.
Mitchell’s Softball Gloves Company estimated the following at the beginning of the year:
Assembly Department
Testing Department
Total
Overhead
$570,000
$130,000
$700,000
Direct Labor Hours
142,500
32,500
175,000
Machine Hours
32,000
65,000
97,000
Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department.
Actual data for August is as follows:
Assembly Department
Testing Department
Total
Overhead
$42,000
$12,000
$54,000
Direct Labor Hours
13,500
2,430
15,930
Machine Hours
4,020
11,000
15,020
Refer to Figure 5-2. Mitchell decides to continue using departmental overhead rates. If a job spends 4 hours in assembly and 3 hours in testing, what is the amount of overhead charged to the job?
Answer
a
$22
b
$20
c
$28
d
$50.54
e
none of these
Question 1
Figure 5-2.
Mitchell’s Softball Gloves Company estimated the following at the beginning of the year:
Assembly Department
Testing Department
Total
Overhead
$570,000
$130,000
$700,000
Direct Labor Hours
142,500
32,500
175,000
Machine Hours
32,000
65,000
97,000
Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department.
Actual data for August is as follows:
Assembly Department
Testing Department
Total
Overhead
$42,000
$12,000
$54,000
Direct Labor Hours
13,500
2,430
15,930
Machine Hours
4,020
11,000
15,020
Refer to Figure 5-2. If Mitchell uses a plantwide overhead rate based on direct labor hours, instead of departmental rates, what is the predetermined overhead rate rounded to the nearest cent?
Answer
a
$5 per direct labor hour
b
$7.22 per machine hour
c
$4 per direct labor hour
d
$2.57 per direct labor hour
e
.52 per direct labor hour
Explanation / Answer
4) a. $22
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.