20. The target cost for a job using job costing is calculated as: A. direct cost

Question

20. The target cost for a job using job costing is calculated as: A. direct costs+ desired profit B. direct costs- desired profit C. expected selling price - direct costs D. expected selling price -desired profit E. expected selling price+ desired profit 21. Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor finished by the end of the month, but needed an additional $3,000 of direct direct labor of $6,500 to finish the job in October. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the balance in the work in Process account at the end of September relative to Job A3B? A. $5,500 B. $11,500 C. $6,500 D. $9,500 The job was not materials and additional E. $14,500 22. The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,400 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $2,000 and direct labor cost of $800. Therefore, the company's overhead application rate is: A. 40%. B. 50%. C. 80%. D. 200%. E. 220%. pg. 6

Explanation / Answer

20) Target cost = expected selling price-desired profit

so answer is d) Expected selling price-desired profit

21) Work in process balance = 2500+4000+(4000*200% ) = 14500

so answer is e) $14,500

22) Overhead = 4400-2000-800 = 1600

Overhead application rate = 1600*100/800 = 200%

so answer is d) 200%

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