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7. In a process cost system, the application of factory overhead
usually would be recorded as an increase in
8. Jonathan Mfg. adopted a job-costing system. For the current
year, budgeted cost driver activity levels for direct labor hours and
direct labor costs were 20,000 and $100,000, respectively. In
addition, budgeted variable and fixed factory overheads were
$50,000 and $25,000, respectively. The actual costs and hours for
the year were as follows: Direct labor hours 21,000, Direct labor
costs $110,000, Machine hours 35,000. For a particular job, 1,500
direct labor hours were used. Using direct labor hours as the cost
driver, what amount of overhead should be applied to this job?
9.
Indirect labor is a
10. Hoyt Co. manufactured the following units: Saleable 5,000,
Unsalable (normal spoilage) 200, Unsalable (abnormal spoilage)
300, the manufacturing cost totaled $99,000. What amount should
Hoyt debit to finished goods?
11. In the past, four direct labor hours were required to produce
each unit of product Y. Material costs were $200 per unit, the direct
labor rate was $20 per hour, and factory overhead was three times
the direct labor cost. In budgeting for next year, management is
planning to outsource some manufacturing activities and to further
automate others. Management estimates that these plans will reduce
labor hours by 25%, increase the factory overhead rate to 3.6 times
the direct labor costs, and increase material costs by $30 per unit.
Management plans to manufacture 10,000 units. What amount
should management budget for the cost of goods manufactured?
12. During the month of March 2005, Nale Co. used $300,000 of
direct materials. On March 31, 2005, Nale's direct materials
inventory was $50,000 more than it was on March 1, 2005. Direct
material purchases during the month of March 2005 amounted to
13. Based on the following data, what is the gross profit for the
company? Sales $1,000,000, Net purchases of raw materials
600,000, Cost of goods manufactured 800,000, Marketing and