Johansen Corporation uses a predetermined overhead rate based on direct labor-ho
ID: 2546606 • Letter: J
Question
Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year:
Direct materials...................................
$6,000
Direct labor.........................................
$20,000
Rent on factory building......................
$15,000
Sales salaries.....................................
$25,000
Depreciation on factory equipment......
$8,000
Indirect labor.......................................
$12,000
Production supervisor's salary.............
$15,000
Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be:
A) $2.50 per direct labor-hour
B) $2.79 per direct labor-hour
C) $3.00 per direct labor-hour
D) $4.00 per direct labor-hour
Beat Corporation uses a job-order costing system with a single plant-wide 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:
A) $750
B) $516
C) $984
D) $234
The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $3,044. A total of 46 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $15 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $13 per machine-hour. The total cost for the job on its job cost sheet would be:
A) $4,332
B) $3,734
C) $3,072
D) $5,086
Odonnel Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $36,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 10,000 direct labor-hours.
The estimated total manufacturing overhead is closest to:
A) $64,000
B) $36,000
C) $28,000
D) $36,003
Direct materials...................................
$6,000
Direct labor.........................................
$20,000
Rent on factory building......................
$15,000
Sales salaries.....................................
$25,000
Depreciation on factory equipment......
$8,000
Indirect labor.......................................
$12,000
Production supervisor's salary.............
$15,000
Explanation / Answer
1. Solution is A. 2.5
2. Solution is A. $750
3. Solution D. $5,086
4. Solution A) $64,000
Rent on factory building 15,000 Depreciation on factory equipment 8,000 Indirect labour 12,000 Production Supervisor's salary 15,000 Total OH (a) 50,000 Direct Labor hours (b) 20,000 OH Rate (a/b) 2.5Related Questions
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