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Milford Company has decided that direct labor hours is a good basis on which to apply overhead to production. The following data are for the most recent year. Budgeted number of direct labor hours worked =20,000 hours Budgeted amount of manufacturing overhead =$100,000 - Actual number of direct labor hours worked =25,000 hour Actual amount of manufacturing overhead =5115,000 What is Milford Company's PREDETERMINED OVERHEAD RATE? $5.00 per hour $5.75 per hour $4.00 per hour $4.60 per hour Mena Company has decided that direct labot bours is a good basis on which to apply averhead to production. The predetermined onerhead nate for the mont tecent year is sio for each direct labor hour The following dat w were collected daring the year: Actual number of direct labor hours worked =25,000 houn - Actual amount of manufacturing overhead =$230,000 Mota Company applied manufactaring oveshead daring the year. Which ONE of the following should be included in the nummary fournal entry aecesary to record this application of manafacturing overthead? CREDIT to Work-in-Process inventory for $230,000 CREDIT to Mamulacturing Overhead for $230,000 CREOT to Work-in-Process inventory for $250,000 CReDer to Manufacturing Overhead for $250,000 Ballard Company is implementing an activity-based costing (ABC) system. Under such a system, how are facility support costs treated? As direct labor costs that are assigned to specific products As common costs that are not assigned to any specific product As advertising costs that are excluded from the computation of gross operating profit As direct materials costs that are assigned to specific products The following information is available for Dakota Compary: Dakota Company has decided to allocate its manufacturing oveitead cost using activity based costing It is determined that 5200,000 of manufactiaring overhead is for facility support costs and therefore will oot be used in compoting gross margin for the indivdual products. The remaining 55,000,000 in manufacturing overhead will be allocoted based on batch tevet and product tine inanufacturing ai follows: What is Dakota Company's gross mangin foc Product I using ACTIVIT-RASED COSTWG? $400,000 $520.000 $450,000 $370,000 Mallville Company has decided that direct labor hours is a good basis on which to apply overhead to production. The following data are for the most recent year. - Budgeted number of direct labor hours worked 4,000 hours Budgeted amount of manufacturing overhead =$100,000 Actual number of direct labor hours worked =5,000 boun Actual amount of manufacturing overhead =$115,000 Which ONE of the following should be included in the joumal entry neceisary to close Millille Company's manufacturing overhead account for the year? Assume that the company chooses the easiest method for the end-of year closing of the manufacturing overthead account. CREDIT to Manufacturing Overthead for $15,000 CREDIT to Manufacturing Overhead for $10,000 CREDir to Cost of Goods Sold for $15,000 Catort to Cost of Goods Sold for $10,000 The Genola Company manufactures insulated windows, Costs for March were as follows. What is Genola Company's actual manufacturing overhead for March? $27,000 $9,000 $5,000 $75,000 Derrald Company manufactures snowboards. Estimated costs for Year I were as follown: Estimated direct labor hours were 40,000 . Actual data for Year 1 are as follows: Total manufacturing overhead: $120,000 Direct labor hours: 60,000 hours The predetermined manufacturing overhead rate is determined on the basis of direct labor hours. Which ONE of the followins atatements is Thut? Applied overhead was LESS than actual overhead by $42,000 Applied overhead was LES than actual overhead by $22,000. Applied overhead was MORE than actual overthead by $42,000. Applied overhead was MORE than actual overhead by $22,000. The four general casgories of ABC activities are unit, batch, product line, and facility nupport. The fint utep in implementing an ABC overthrad mutem is to do s detalied included? Uns Product line Facilicy support Batch Maggie's Motors manufactures boat motors. Maggie is shifting from a traditional costing system to an activity-based conting sytem. She has started by identifying four? ovethead cost activities. listed below is the table that Magrie created identifying the cost activities and the percentage of time spent on each activity by various factory employees. Maggie also gathered the total overbead cost associated with each factory employee, which is shown below: Using the information above, conpote the amount of the cost pool associated with ondering parts. $05,000 $66.500 $86,500 569.750 record elosing of the manufacturing overhead account includes which ONE, of the following? Assume that the compamy chooses the easient method for the end-of -year closine of the manufacturing overthead account. A DEAIr to Manufacturing Overhead A DEarT to Finithed Goods inventory A Deart to Workin.Process imventory A DEBrt to Cost of Goods Sold For the year, Willard Company had actual manufacturing overhead of $100,000 and agplied manufacturing overhead of $117,000. Which ONE of the following should be included in the joumal entry necessary to elose the manuficturing overhead account? Asuatne that the company chooses the easiest method for the end-of-year clasing of the manufacturing overhesd account. CREDIT to Cost of Geods Sold for $17,000 CREDIT to Work-in-Process inventory for $100,000 CREDIT to Manufacturing Overhead for 517,000 DEBIT to Cost of Goods 5 old for $100,000 The four wonenal categories of ABC activities ate unit, batch, product line, and faclity support. The first step in implementing an ABC overhesd system is to do a detailed study of the production process to determine exactly what activities cause overhead conts. In what general cont category should "factory insurance cost" be included? Unit Faclity support Batich Product line Using the following information, compute the COST OF GOODS MANUFACTURED. $520,440 $528,440 $524,440 $517,560 Ferron Company manufactures three products. Profit computations for these three products for Year 1 are given below. Ferron has a total of $1,000,000 in manufacturing overbead costs. Of this amount, $700,000 is directly related to the number of product butches productd during the year. The number of batches of the three groducts for Year I was as follows: Product X,20 batches; Product Y,30 batches; Product Z, 50 batches. The remaining 5800,000 in overterad is be if the Product 2 line werte dropped? Assume that Ferroa has no other costs or apenaes except those described here. Profit of 530.000 Profit of 5180.000 Loss of 5120,000 Loss of $270,000 Kamili Company has the following three manufacturing overthead cont driven. $2.860 53.200 53,000 53,580

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