Question

On September 30, the fixed manufacturing overhead account of Gordon Ltd. showed a debit balance of $6489 after fixed manufacturing overhead had been applied for the month. If the actual total manufacturing overhead cost incurred in September was $102837 and the production was 7607 units, then what was the rate for applying fixed manufacturing overhead cost?

Select one:

a. $ 13.67 per unit

b. $ 12.67 per unit

c. $ 14.37 per unit

d. $ 13.52 per unit

Phillis Ltd. uses a job order costing system that applies manufacturing overhead to work in process using a predetermined annual overhead rate. During April 20x6, the company’s transactions included the following:

	Direct labour costs	$155805
	Direct materials issued to production	76823
	Indirect materials issued to production	8578
	Actual manufacturing overhead	154076
	Applied manufacturing overhead	181079

The company’s beginning and ending work in process inventory balances for April 20x6 were $21662 and $31563, respectively. What was the cost of goods manufactured for April 20x6?

Select one:

a. $385381

b. $403806

c. $412384

d. $376803

Answer 1

1. Overhead applied ( recovered ) = Overhead incurred - debit balance at the end of the month

= 102837 - 6489

= 96348

Rate for applying fixed overhead cost = ( overhead applied / number of units )

= 96348 / 7607

= 12.67 per unit

Therefore the answer is $12.67 per unit . Option b

2.
Work in progress Afc. Direet Labour Lost 155805 Direct material 76823 cost of Good 403806 manufactured Closing balance 31563. Factory Qurhead 181079 Opening balance 21 662 435369 435369 Factory Overhead Alc. Indiret; material 8578 Inwried OH | 154076 Applied (Wip Alo 181079

Therefore the answer is $403806 . option b

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