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answer the following questions using the information below pearl corp applies manufa 4301060


Answer the following questions using the information below:


Pearl Corp. applies manufacturing overhead costs to products at a budgeted indirect-cost rate of $60 per direct manufacturing labor-hour. A retail outlet has requested a bid on a special order of a necklace. Estimates for this order include: Direct materials of $50,000; 400 direct manufacturing labor-hours at $20 per hour; and a 30% markup rate on total manufacturing costs.


21) Estimated total product costs for this special order equal ________.

A) $96,000

B) $76,000

C) $80,000

D) $82,000


22) The bid price for this special order is ________.

A) $66,000

B) $106,600

C) $86,600

D) $116,600

Filex Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $18 per direct labor-hour. The following data are obtained from the accounting records for June 2014:


Direct materials              $140,000

Direct labor (4,000 hours @ $10/hour)              40,000

Indirect labor              13,000

Plant facility rent              30,000

Depreciation on plant machinery and equipment              22,500

Sales commissions              24,000

Administrative expenses              28,000


23) The amount of manufacturing overhead allocated to all jobs during June 2014 totals ________.

A) $93,500

B) $72,000

C) $89,000

D) $65,500


24) For June 2014, manufacturing overhead is ________.

A) overallocated by $6,500

B) underallocated by $21,500

C) overallocated by $21,500

D) underallocated by $6,500

Answer the following questions using the information below:


Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 20X3, the following estimates were provided for the coming year:



Direct labor-hours              30,000              60,000

Machine-hours              80,000              20,000

Direct labor cost              $500,000              $900,000

Manufacturing overhead costs              $420,000              $240,000


The accounting records of the company show the following data for Job #316:



Direct labor-hours              120              70

Machine-hours              60              5

Direct material cost              $300              $200

Direct labor cost              $100              $400


25) For Bauer Manufacturing, what is the annual manufacturing overhead cost-allocation rate for the Machining Department?

A) $4.00

B) $4.20

C) $4.67

D) $5.25


26) What amount of manufacturing overhead costs will be allocated to Job #316?

A) $439

B) $502

C) $595

D) $532

27) What are the total manufacturing costs of Job #316?

A) $715

B) $880

C) $1,595

D) $1,000


Answer the following questions using the information below:


Wayland Manufacturing uses a normal cost system and had the following data available for 2010:


Direct materials purchased on account              $ 148,000

Direct materials requisitioned              82,000

Direct labor cost incurred              130,000


Factory overhead incurred              146,000

Cost of goods completed              292,000

Cost of goods sold              256,000


Beginning direct materials inventory              26,000             

Beginning WIP inventory              64,000

Beginning finished goods inventory              58,000

Overhead application rate, as a percent of direct-labor costs              125 percent


28) The journal entry to record the materials placed into production would include a ________.

A) credit to Direct Materials Inventory for $82,000

B) debit to Direct Materials Inventory for $148,000

C) credit to WIP Inventory for $82,000

D) debit to WIP Inventory for $148,000


29) The ending balance of direct materials inventory is ________.

A) $92,000

B) $174,000

C) $82,000

D) $108,000

30) The ending balance of work-in-process inventory is ________.

A) $438,500

B) $146,500

C) $130,000

D) $422,000




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