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4. (TCO 2) Sweet Co. uses budgeted overhead rates to apply overhead to
individual jobs. They use a system based on direct labor hours. Last year,
the company made the following estimates for this year.
Direct labor costs
Factory overhead costs
Direct Labor Hours
Machine Hours
$48,000,000
$6,400,000
80,000
110,000
(a) What is the budgeted overhead rate for the company?
(b) If Job #34567 had the following:
Material costs were $500,000;
Direct labor costs were $450,000;
Direct labor hours were 25,000; and
Machine hours were 36,000,
then what is the total cost of Job #34567? (Points : 30)
5. (TCO 3) Adnan Company uses process costing. At the beginning of
the month, there were 8,000 units in process, 90% complete with respect
to material and 80% complete with respect to conversion costs. 40,000
units were started during the month and 40,000 units were completed.
The units in ending Work-In-Process Inventory were 70% complete with
respect to material and 10% complete with respect to conversion costs.
How many equivalent units will be used in calculating the cost per unit
for materials?(Points : 30)
6. (TCO 6) Handy Display Company manufactures display cases to be
sold to retail stores. The cases come in three sizes: large, medium, and
small. Currently, Handy Display Company uses a single plant-wide
overhead rate to allocate its $3,357,800 of annual manufacturing