11) Brand Corporation uses direct labor-hours in its predetermined overhead rate
ID: 2341014 • Letter: 1
Question
11) Brand Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,860 hours and the total estimated manufacturing overhead was $511,524. At the end of the year, actual direct labor-hours for the year were 21,650 hours and the actual manufacturing overhead for the year was $511,524. Overhead at the end of the year was:
Multiple Choice
Top of Form
$4,964 overapplied
$4,964 underapplied
$4,914 underapplied
$4,914 overapplied
12) Weatherhead Inc. has provided the following data for the month of March. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.
Work In Process
Finished Goods
Cost of Goods Sold
Total
Direct materials
$
4,240
$
14,740
$
41,700
$
60,680
Direct labor
10,080
29,480
83,880
123,440
Manufacturing overhead applied
5,860
11,200
35,060
52,120
Total
$
20,180
$
55,420
$
160,640
$
236,240
Manufacturing overhead for the month was overapplied by $4,100.
The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts.
The work in process inventory at the end of March after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to: Round intermediate percentage computations to the nearest whole percent.)
n 16e Rechecks 2017-08-28
Multiple Choice
Top of Form
$19,800
$20,318
$20,389
$19,729
13) Brand Inc. has provided the following data for the month of May:
Inventories:
Beginning
Ending
Work in process
$
36,000
$
31,000
Finished goods
$
65,000
$
69,000
Additional information:
Direct materials
$
76,000
Direct labor cost
$
106,000
Manufacturing overhead cost incurred
$
82,000
Manufacturing overhead cost applied to Work in Process
$
80,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
The cost of goods manufactured for May is:
Multiple Choice
Top of Form
$262,000
$267,000
$264,000
$269,000
14. Brand Inc. started the month with 24,100 units in its beginning work in process inventory. An additional 309,100 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 29,100 units in the ending work in process inventory of the Assembly Department. How many units were transferred to the next processing department during the month?
Multiple Choice
Top of Form
333,200
362,300
304,100
314,100
Work In Process
Finished Goods
Cost of Goods Sold
Total
Direct materials
$
4,240
$
14,740
$
41,700
$
60,680
Direct labor
10,080
29,480
83,880
123,440
Manufacturing overhead applied
5,860
11,200
35,060
52,120
Total
$
20,180
$
55,420
$
160,640
$
236,240
Explanation / Answer
Q11. $ 4914 Underapplied Explanation: Pre determined OH rate= 511524/21860 = 23.40 per DLH Actual Manufacturing OH 511524 Less: OH applied 506610 (21650*23.40) under-applied OH 4914 Q12. Answer is 19800 Explanation: Total balance in WIP inventory 20180 Less: Proportionate share of over-applied OH 362 (4100*20180/236240) Balance in WIP 19818 Closest to $ 19800 Q13. Answer is $ 267000 Explanation: Cost of goods manufactured: Beginning balance of WIP 36000 Current cost of manufacturing: Material 76000 Labour 106000 Overheads applied 80000 262000 Total cost of goods manufacturing 298000 Less; Ending WIP 31000 Cost of goods manufactured: 267000 Q14. Answer is 304100 units Explanation: Beginning Inventory 24100 Add: Units started 309100 Total Units to account for 333200 Less: Ending inventory 29100 Units completed and transferred out 304100
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