# \$25.00 for genions alert1234 only

Due by Midnight tonight

Name two reasons why overhead might be under-applied in a given year and how this might be able to be prevented? What is a predetermined overhead rate and how is it computed?  What do you feel is the best allocation base to use for the denominator in the predetermined overhead rate calculation and why?  What factors would you consider in choosing the allocation base?

(Citation within  document and Reference)

 1. Forbes Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the period, the company estimated manufacturing overhead would be \$18,000 and direct labor-hours would be 15,000. The actual figures were \$19,500 for manufacturing overhead and 16,000 direct labor-hours. The cost records for the period will show: (Points : 2)

[removed][removed][removed][removed]

 Question 2. 2. Avery Co. uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. For the month of October, Avery’s estimated manufacturing overhead cost was \$300,000 based on an estimated activity level of 100,000 direct labor-hours. Actual overhead amounted to \$325,000 with actual direct labor-hours totaling 110,000 for the month. How much was the overapplied or underapplied overhead? (Points : 2)

[removed] \$25,000 overapplied
[removed] \$25,000 underapplied
[removed] \$5,000 overapplied
[removed] \$5,000 underapplied

[removed][removed][removed][removed]

 Question 3. 3. Heller Cannery, Inc. uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The company estimated that it would incur \$510,000 in manufacturing overhead during the year and that it would work 100,000 machine-hours. The company actually worked 105,000 machine-hours and incurred \$540,000 in manufacturing overhead costs. By how much was manufacturing overhead underapplied or overapplied for the year? (Points : 2)

[removed] \$4,500 overapplied
[removed] \$4,500 underapplied
[removed] \$30,000 overapplied
[removed] \$30,000 underapplied

[removed][removed][removed][removed]

 Question 4. 4. Brusveen Corporation applies manufacturing overhead to jobs on the basis of direct labor-hours. The following information relates to Brusveen for last year:   What was Brusveen’s underapplied or overapplied overhead for last year? (Points : 2)

[removed] \$4,000 underapplied
[removed] \$8,880 underapplied
[removed] \$8,880 overapplied
[removed] \$9,000 underapplied

[removed][removed][removed][removed]

 Question 5. 5. Linh Corporation applies manufacturing overhead to jobs on the basis of pounds of direct material used. Linh estimated 160,000 pounds of material usage and \$200,000 of manufacturing overhead cost for the year. During the year, Linh actually used 150,000 pounds of material and incurred \$171,000 of manufacturing overhead cost. What was Linh’s underapplied or overapplied overhead for the year? (Points : 2)

[removed] \$12,500 underapplied
[removed] \$16,500 overapplied
[removed] \$17,600 underapplied
[removed] \$29,000 overapplied

[removed][removed][removed][removed]

 Question 6. 6. Darrow Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the company worked 10,000 direct labor-hours and incurred \$80,000 of actual manufacturing overhead cost. If overhead was underapplied by \$2,000, the predetermined overhead rate for the company for the year must have been: (Points : 2)

[removed] \$7.80
[removed] \$8.00
[removed] \$8.20
[removed] \$8.40

[removed][removed][removed][removed]

 Question 7. 7. Reamer Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year:   Reamer estimates that 500 direct labor-hours and 1,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be: (Points : 2)

[removed] \$6.80
[removed] \$6.00
[removed] \$3.00
[removed] \$3.40

[removed][removed][removed][removed]

 Question 8. 8. Washtenaw Corporation uses a job-order costing system. The following data are for last year:   Washtenaw applies overhead using a predetermined rate based on direct labor-hours. What amount of overhead was applied to jobs last year? (Points : 2)

[removed] \$39,050
[removed] \$42,600
[removed] \$35,750
[removed] \$36,960

[removed][removed][removed][removed]

 Question 9. 9. The Silver Company uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Dept. A and on machine-hours in Dept. B. At the beginning of the year, the company made the following estimates:   What predetermined overhead rates would be used in Dept A and Dept B, respectively? (Points : 2)

[removed] 67% and \$3.00
[removed] 150% and \$5.00
[removed] 150% and \$3.00
[removed] 67% and \$5.00

[removed][removed][removed][removed]

 Question 10. 10. The following information relates to Araceli Manufacturing Company:   What was Araceli’s underapplied or overapplied overhead for last year? (Points : 2)

[removed] \$35,400 overapplied
[removed] \$35,400 underapplied
[removed] \$15,000 underapplied
[removed] \$21,000 overapplied

[removed][removed][removed][removed]

 Question 11. 11. Wayne Company’s beginning and ending inventories for the month of June were as follows:   Production data for the month follow:   Wayne applies manufacturing overhead cost to jobs based on direct labor-hours, and the predetermined rate is \$5.75 per direct labor-hour. The company does not close underapplied or overapplied manufacturing overhead to Cost of Goods Sold until the end of the year. What is the amount of cost of goods manufactured? (Points : 2)

[removed] \$508,750
[removed] \$502,000
[removed] \$585,000
[removed] \$487,750

[removed][removed][removed][removed]

 Question 12. 12. Buzhardt Inc., which uses job-order costing, has provided the following data for February:   The cost of goods manufactured for February is closest to: (Points : 2)

[removed] \$185,000
[removed] \$189,000
[removed] \$175,000
[removed] \$179,000

[removed][removed][removed][removed]

 Question 13. 13. Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of \$239,700 and 4,700 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to \$242,000 and actual direct labor-hours were 4,600. The predetermined overhead rate for the year was closest to: (Points : 2)

[removed] \$52.61
[removed] \$49.91
[removed] \$51.00
[removed] \$51.49

[removed][removed][removed][removed]

 Question 14. 14. Hamilton Company uses job-order costing. Manufacturing overhead is applied using a predetermined rate of 150% of direct labor cost. Any underapplied or overapplied manufacturing overhead is closed to Cost of Goods Sold at the end of each month. Additional information is available as follows: ° Job 101 was the only job in process at January 31. The job cost sheet for this job contained the following costs at the beginning of the month:   ° Jobs 102, 103, and 104 were started during February.° Direct materials requisitions for February totaled \$26,000.° Direct labor cost of \$20,000 was incurred for February.° Actual manufacturing overhead was \$32,000 for February.° The only job still in process at February 28 was Job 104, with costs of \$2,800 for direct materials and \$1,800 for direct labor. The cost of goods manufactured for February was: (Points : 2)

[removed] \$77,700
[removed] \$78,000
[removed] \$79,700
[removed] \$85,000

[removed][removed][removed][removed]

 Question 15. 15. Toan Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month. In September the company completed job S80M that consisted of 23,000 units of one of the company’s standard products. No other jobs were in process during the month. The job cost sheet for job S80M shows the following costs:   During the month, the actual manufacturing overhead cost incurred was \$270,020 and 3,000 completed units from job S80M were sold. No other products were sold during the month. The unit product cost for job S80M is closest to: (Points : 2)

[removed] \$31.30
[removed] \$43.00
[removed] \$329.97
[removed] \$329.67

[removed][removed][removed][removed]

 Question 16. 16. An effective ERM program would include coverage of broad risk categories, including: (Points : 2)

[removed] legal and regulatory risks
[removed] risk of losses due to natural disasters
[removed] risk of IT operations failures
[removed] all of the above

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