Cost_Acct_Questions_16 Sept

1.
Westan
Corporation uses a predetermined overhead rate of $23.10 per direct
labor-hour. This predetermined rate was based on a cost formula that
estimated $277,200 of total manufacturing overhead for an estimated activity
level of 12,000 direct labor-hours.

The
company incurred actual total manufacturing overhead costs of $266,000 and
12,600 total direct labor-hours during the period.

Required:

Determine the amount of
manufacturing overhead that would have been applied to all jobs during the
period.

2.
Kirkaid
Company recorded the following transactions for the just completed month:

a.

$84,000 in raw materials were
requisitioned for use in production. Of this amount, $72,000 was for direct
materials and the remainder was for indirect materials.

b.

Total labor wages of $108,000 were
incurred. Of this amount, $105,000 was for direct labor and the remainder was
for indirect labor.

c.

Additional
actual manufacturing overhead costs of $197,000 were incurred.

d.

A total of $218,000 in
manufacturing overhead was applied to jobs.

Required:

Determine the under-applied or
over-applied overhead for the month.

3.
A company
assigns overhead cost to completed jobs on the basis of 120% of direct labor
cost. The job cost sheet for Job 413 shows that $12,000 in direct materials
has been used on the job and that $8,000 in direct labor cost has been
incurred. A total of 200 units were produced in Job 413.

Required:

a.

What is the total manufacturing
cost assigned to Job 413?

b.

What is the unit product cost for
Job 413?