8. Question : (TCO 2) BCS Company applies manufacturing overhead based on direct
labor cost. Information concerning manufacturing overhead and labor for August
follows:
Estimated
Actual
9.Question : (TCO 2) During 2011, Madison Company applied overhead using a joborder costing system at a rate of $12 per direct labor hours. Estimated direct labor
hours for the year were 150,000, and estimated overhead for the year was
$1,800,000. Actual direct labor hours for 2011 were 140,000 and actual overhead
was $1,670,000.
What is the amount of under or over applied overhead for the year?
10. Question : (TCO 3) Companies in which of the following industries would not be
likely to use process costing?
11. Question : (TCO 3) The Blending Department began the period with 45,000 units.
During the period the department received another 30,000 units from the prior
department and completed 60,000 units during the period. The remaining units
were 75% complete. How much are equivalent units in The Blending Department’s
work in process inventory at the end of the period?
12. Question : (TCO 3) During March, the varnishing department incurred costs of
$90,250 for direct labor. The beginning inventory was 3,500 units and 10,000 units
were transferred to the varnishing department from the sanding department during
June. The direct labor cost in the beginning inventory was $27,270. The ending
inventory consisted of 2,000 units, which were 25% complete with respect to direct
labor. What is the cost per equivalent unit for direct labor?
13. Question : (TCO 4) Clearance Depot has total monthly costs of $8,000 when 2,500
units are produced and $12,400 when 5,000 units are produced. What is the
estimated total monthly fixed cost?
1. Question : (TCO 4) The margin of safety is the difference between
2. Question : (TCO 4) Allen Company sells homework machines for $100 each.
Variable costs per unit are $75 and total fixed costs are $62,000. Allen is considering
the purchase of new equipment that would increase fixed costs to $84,000, but
decrease the variable costs per unit to $60. At that level Allen Company expects to
sell 3,000 units next year. What is Allen’s break-even point in units if it purchases the
new equipment?