*The Thomlin Company estimates that total overhead for the current year will be
ID: 2550834 • Letter: #
Question
*The Thomlin Company estimates that total overhead for the current year will be $16,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $16,500,000 and the actual machine hours are 220,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate?
Question 11 options:
$75 per machine hour
$73 per machine hour
$83 per machine hour
$80 per machine hour
On January 15, $168,000 of direct materials were requisitioned for production of Job 350. From the following, select the correct journal entry to record the transaction on the day the materials were requisitioned by the production department.
Question 12 options:
Jan 15 Work in Process 168,000
Factory Overhead 168,000
Jan 15 Work in Process 168,000
Cash 168,000
Jan 15 Materials 168,000
Work in Process 168,000
Jan 15 Work in Process 168,000
Materials 168,000
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $675,000 and direct labor hours would be 45,000. Actual factory overhead costs incurred were $725,000, and actual direct labor hours were 48,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?
Question 13 options:
$5,000 underapplied
$45,000 overapplied
$45,000 underapplied
$5,000 overpplied
Department R had 5,000 units in work in process that were 85% completed as to conversion cost at the beginning of the period, 30,000 units of direct materials were added during the period, 32,000 units were completed during the period, and 3,000 units were 60% completed as to conversion cost at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was:
Question 14 options:
29,450 units
29,550 units
33,050 units
32,550 units
The debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows:
Work in process, April 1, 5,000 units:
Direct materials cost, for 5,000 units
$ 8,000
Conversion costs, for 5,000 units, 66.7% completed
$ 6,000
Direct materials added during April, 10,000 units
$ 38,000
Conversion costs during April
$ 31,000
Goods finished during April, 13,000 units
---
April 30 work in process, 2,000 units, 50% completed
---
All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. The direct materials cost per equivalent unit for April is:
Question 15 options:
$2.92 per unit
$3.80 per unit
$2.53 per unit
$3.00 per unit
Mocha Company manufactures a single product by a continuous process, involving two production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively.
The journal entry to record the flow of costs into Department 1 during the period for applied factory overhead is:
Question 16 options:
Factory Overhead--Department 1 70,000
Wages Payable 70,000
Work in Process--Department 1 150,000
Factory Overhead--Department 1 150,000
Work in Process--Department 1 70,000
Factory Overhead--Department 1 70,000
Factory Overhead--Department 1 150,000
Work in Process--Department 1 150,000
*Given the following cost and activity observations for Bounty Company’s utilities, Bounty’ variable utilities costs per machine hour is equal to:
Total Cost
Machine Hours
March
$6,200
30,000
April
5,400
20,000
May
5,800
24,000
June
7,200
36,000
Question 17 options:
$0.11
$10.00
$0.27
$0.20
Flying Cloud Co. has the following operating data for its manufacturing operations:
Unit selling price
$ 350
Unit variable cost
$ 100
Total fixed costs
$980,000
The company has decided to increase the wages of hourly workers which will increase the unit variable cost by 10%. Increases in the salaries of factory supervisors and property taxes for the factory will increase fixed costs by 5%. If sales prices are held constant, the next break-even point for Flying Cloud Co. will be:
Question 19 options:
increased by 368 units
increased by 132 units
decreased by 264 units
decreased by 368 units
Bobby Co. sells two products, X and Y. Last year, Bobby sold 18,000 units of X's and 12,000 units of Y's. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products are provided below.
Product
Selling Price
Variable Cost per unit
Contribution Margin
per unit
X
$180
$100
$80
Y
$100
$60
$40
Assuming that last year’s fixed costs totaled $160,000. What was Bobby Co's break-even point in units of enterprise product "E"?
Question 20 options:
2,000 units
2,857 units
2,500 units
6,000 units
If fixed costs are $1,500,000 ; the unit selling price is $250, and the unit variable costs are $130, what is the amount of sales (in units) required to realize an income from operations of $200,000?
Question 22 options:
16,000 units
12,500 units
11,538 units
14,167 units
If the costs for direct materials, direct labor, and factory overhead were $522,200, $82,700, and $45,300, respectively, for 16,000 equivalent units of conversion costs, the conversion cost per equivalent unit was $8.00
Question 21 options:
$75 per machine hour
$73 per machine hour
$83 per machine hour
$80 per machine hour
On January 15, $168,000 of direct materials were requisitioned for production of Job 350. From the following, select the correct journal entry to record the transaction on the day the materials were requisitioned by the production department.
Question 12 options:
Jan 15 Work in Process 168,000
Factory Overhead 168,000
Jan 15 Work in Process 168,000
Cash 168,000
Jan 15 Materials 168,000
Work in Process 168,000
Jan 15 Work in Process 168,000
Materials 168,000
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $675,000 and direct labor hours would be 45,000. Actual factory overhead costs incurred were $725,000, and actual direct labor hours were 48,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?
Question 13 options:
$5,000 underapplied
$45,000 overapplied
$45,000 underapplied
$5,000 overpplied
Department R had 5,000 units in work in process that were 85% completed as to conversion cost at the beginning of the period, 30,000 units of direct materials were added during the period, 32,000 units were completed during the period, and 3,000 units were 60% completed as to conversion cost at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was:
Question 14 options:
29,450 units
29,550 units
33,050 units
32,550 units
The debits to Work in Process--Assembly Department for April, together with data concerning production, are as follows:
Work in process, April 1, 5,000 units:
Direct materials cost, for 5,000 units
$ 8,000
Conversion costs, for 5,000 units, 66.7% completed
$ 6,000
Direct materials added during April, 10,000 units
$ 38,000
Conversion costs during April
$ 31,000
Goods finished during April, 13,000 units
---
April 30 work in process, 2,000 units, 50% completed
---
All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. The direct materials cost per equivalent unit for April is:
Question 15 options:
$2.92 per unit
$3.80 per unit
$2.53 per unit
$3.00 per unit
Mocha Company manufactures a single product by a continuous process, involving two production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively.
The journal entry to record the flow of costs into Department 1 during the period for applied factory overhead is:
Question 16 options:
Factory Overhead--Department 1 70,000
Wages Payable 70,000
Work in Process--Department 1 150,000
Factory Overhead--Department 1 150,000
Work in Process--Department 1 70,000
Factory Overhead--Department 1 70,000
Factory Overhead--Department 1 150,000
Work in Process--Department 1 150,000
*Given the following cost and activity observations for Bounty Company’s utilities, Bounty’ variable utilities costs per machine hour is equal to:
Total Cost
Machine Hours
March
$6,200
30,000
April
5,400
20,000
May
5,800
24,000
June
7,200
36,000
Question 17 options:
$0.11
$10.00
$0.27
$0.20
Flying Cloud Co. has the following operating data for its manufacturing operations:
Unit selling price
$ 350
Unit variable cost
$ 100
Total fixed costs
$980,000
The company has decided to increase the wages of hourly workers which will increase the unit variable cost by 10%. Increases in the salaries of factory supervisors and property taxes for the factory will increase fixed costs by 5%. If sales prices are held constant, the next break-even point for Flying Cloud Co. will be:
Question 19 options:
increased by 368 units
increased by 132 units
decreased by 264 units
decreased by 368 units
Bobby Co. sells two products, X and Y. Last year, Bobby sold 18,000 units of X's and 12,000 units of Y's. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products are provided below.
Product
Selling Price
Variable Cost per unit
Contribution Margin
per unit
X
$180
$100
$80
Y
$100
$60
$40
Assuming that last year’s fixed costs totaled $160,000. What was Bobby Co's break-even point in units of enterprise product "E"?
Question 20 options:
2,000 units
2,857 units
2,500 units
6,000 units
If fixed costs are $1,500,000 ; the unit selling price is $250, and the unit variable costs are $130, what is the amount of sales (in units) required to realize an income from operations of $200,000?
Question 22 options:
16,000 units
12,500 units
11,538 units
14,167 units
If the costs for direct materials, direct labor, and factory overhead were $522,200, $82,700, and $45,300, respectively, for 16,000 equivalent units of conversion costs, the conversion cost per equivalent unit was $8.00
Question 21 options:
True FalseExplanation / Answer
SOLUTION
1. Overhead rate = $80 per machine hour
Predetermined overhead rate is used to apply the overhead to a product.
It is calculated by dividing the estimated manufacturing overhead cost by the allocation base.
Overhead rate =Total estimated overhead cost / Total estimated quantity of the overhead allocation base
= $16,000,000 / 200,000 hours
= $80 per machine hour
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