Question

Clinton Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $1,175,000. The company used 1,500 hours of processing on Job No. 12 during the period and incurred overhead costs totaling $1,200,000. The budgeted machine hours for the year totaled 25,000 How much overhead should be applied to Job No. 12? Select one: A. $70,500 B. $1,000 C. $56,400 D. $979 E. None of the above During 2012, Ford Manufacturing expected Job No. 26 to cost $336,000 of overhead, $400,000 of materials, and $224,000 in labor. Ford applied overhead based on direct labor cost. Actual production required an overhead cost of $840,000, $825,000 in materials used, and $330,000 in labor. All of the goods were completed. What amount was transferred to Finished Goods? Select one: A. $1,995.000 B. $976,000 C. $1,617,000 D. $1,650,000 O E. None of the above. Debits to Work in Process Inventory are accompanied by a credit to all but which one of the following accounts? Select one: A. Raw Materials Inventory B. Factory Labor C. Manufacturing Overhead D. Cost of Goods Sold E. None of the above

Answer 1

Solution :

Question 1 : OH rate Total overhead cost Total Machine Howrs $1,175,000 25,000 $47 Cost to Job No.12 = $ 47 X 1.500 $70500 final Answer ó obtion A Question 2 : OH Mate $ 336,000 $224,000 $1.5 Amt transferred to finished Goods [$105 + $825000 + $ 330 000 $ 495,000 + $825000 + $330.000 $ 1650,000 Final Answer: option D 330,000) Question 3 : option D : Cost Goods sold . Material, Labar and overhead transferred Work in process inventory account by Work in process account & crediting all the respective accounts mentioned above. debiting the