Costs and Direct Labor Cost

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Midterm2Practice Key 1. The following data have been recorded for recently completed Job 501 on its job cost sheet. Direct materials cost was $3,067. A total of 30 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $12 per labor-hour. The company applies manufacturing overhead on the basis of machinehours. The predetermined overhead rate is $11 per machine-hour. The total cost for the job on its job cost sheet would be: A. $4,571 B. $3,757 C. $3,090 D. $3,427 Applied manufacturing overhead = Predetermined overhead rate x Actual machine-hours Applied manufacturing overhead = $11 x 104 Applied manufacturing overhead = $1,144 Total cost = Direct materials + Direct labor + Applied manufacturing…show more content…
$79.66 per unit B. $90.81 per unit C. $29.07 per unit D. $75.70 per unit 10. Data concerning three of the activity cost pools of Bramhall LLC, a legal firm, have been provided below: The activity rate for the "meeting with clients" activity cost pool is closest to: A. $125 per meeting hour B. $65 per meeting hour C. $80 per meeting hour D. $665,500 per meeting hour Kleppe Corporation has provided the following data from its activity-based costing accounting system: The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. 11. How much indirect factory wages and factory equipment depreciation cost would be assigned to the Customer Orders activity cost pool? A. $240,000 B. $72,000 C. $68,000 D. $480,000 12. How much indirect factory wages and factory equipment depreciation cost would NOT be assigned to products using the activity-based costing system? A. $0 B. $68,000 C. $280,000 D. $200,000 13. In this problem, there are three possible overhead allocation bases: direct labor (present system), machine hours (the proposed system), and number of batches. First, calculate product costs under each of the three allocation schemes: (a). Direct labor cost as the allocation base (present system): Bluethings 120,000 .50 $60,000 95.238% 342,857 60,000 $462,857 $ 3.857 Graythings 6,000 .50 $3,000 4.762% 17,143 3,000 $23,143 $

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