Day 14 (and 15)

What was the cost of jobs completed and transferred to finished goods? Assume no beginning or ending WIP

Direct materials issued to production $180,000

Indirect materials issued to production 16,000

Manufacturing overhead incurred 250,000

Manufacturing overhead applied 226,000

Direct manufacturing labor costs 214,000

• $604,000

• $644,000

• $620,000

• $660,000

What is the under(over)applied amount for MOH? Assume no beginning or ending WIP

Direct materials issued to production $180,000

Indirect materials issued to production 16,000

Manufacturing overhead incurred 250,000

Manufacturing overhead applied 226,000

Direct manufacturing labor costs 214,000

• $24,000 under-applied

• $24,000 over-applied

• $394,000 under-applied

• cannot be determined

A company calculated an indirect-cost rate of $12.50 per labor hour for fringe benefits for use in their normal costing system. At the end of the year, the actual cost of fringe benefits was $980,000. The total of labor hours worked for the year was the same amount as budgeted (70,000 hours). If a job required the use of 15 labor hours and the company used the adjusted allocation rate approach, by what amount would the cost of the job change?

• $560

• $281.25

• $22.50

• $20.50

Manufacturing overhead control account

• represents actual overhead costs incurred.

• has a normal debit balance.

• is a control account with a subsidiary ledger that contains the details of the components.

• all of the above.

• none of the above.