Question

Goedl Company uses a single plant-wide overhead rate. They reported the following beginning of the year estimates: 20,000 labor hours: 1,200 machine hours; $50,000 fixed overhead; $2 variable overhead per labor hour. What is the predetermined rate with labor hours as the allocation base? $75.00 $4.50 $2.00 O $2.50

Answer 1

1)	Predetermined overhead rate = (fixed overhead / labor hours) + Variable overhead per hour
	=($50000/20000) +$2
	=$2.5+2
	=$4.5
	Correct Option: Second
2)	Total overhead
	Fixed overhead
	Fabrication	$         12,000
	Painting	$         28,000
	Variable overhead
	Fabrication ($18*900 labor hours)	$         16,200
	Painting ($9*300 MHs)	$           2,700
	Total	$         58,900
	Total Machine Hours =1000+300 = 1300
	Plant wide overhead rate = $58900/1300
	=$45.31 per hour
	Total Cost Of Job A2B3
	Direct Materias	$         280.00
	Direct Labors	$         330.00
	Overhead (9 Mhs*45.31)	$         407.79
	Total Cost Of Job A2B3	$     1,017.79
	Correct Option: SECOND
3)	Cost per Unit Of Job Y3K
	Direct Materias	$   19,500.00
	Direct Labors	$   12,400.00
	Overhead (10*550)	$     5,500.00
	Total Cost Of Job A2B3	$   37,400.00
	Cost Per Unit	$           37.40
	(37400/1000 units)
	Correct Option: FIRST
4)	Total COst Of Job Blue 2B
	Direct Materias	$   15,000.00
	Direct Labors	$   12,600.00
	Overhead (800*$6)	$     4,800.00
	Total Cost Of Job A2B3	$   32,400.00
	Correct Option: THIRD
5)	Total COst Of Job Blue 2B
	Direct Materias	$   15,000.00
	Direct Labors	$   12,600.00
	Overhead (800*$6)	$     4,800.00
	Total Cost Of Job A2B3	$   32,400.00
	Correct Option: SECOND