Costs and Direct Labor Cost

1308 WordsNov 12, 20126 Pages
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 $

More about Costs and Direct Labor Cost

Open Document