JOB COSTING

CHAPTER 4
INTRO QUIZ

1. A company that manufactures dentures

for use by local dentists would use
A. process costing.
B. personal costing.
C. job costing.
D. operations costing.

Manufacturing Overhead Control

A. represents actual overhead

costs incurred.
B. has a normal debit balance.
C. is a control account with a
subsidiary ledger detailing the
components of manufacturing
overhead.
D. All of the above

Crick Corporation uses direct labor-hours in its predetermined

overhead rate. At the beginning of the year, the estimated direct
labor-hours were 14,400 hours and the total estimated
manufacturing overhead was $355,680. At the end of the year,
actual direct labor-hours for the year were 15,200 hours and the
actual manufacturing overhead for the year was $350,680.
Overhead at the end of the year was:

A. $24,760 underapplied
B. $24,760 overapplied
C. $19,760 underapplied
D. $19,760 overapplied

Crick Corporation uses direct labor-hours in its

predetermined overhead rate. At the beginning of
the year, the estimated direct labor-hours were
14,400 hours and the total estimated
manufacturing overhead was $355,680. At the
end of the year, actual direct labor-hours for the
year were 15,200 hours and the actual
manufacturing overhead for the year was
$350,680. Overhead at the end of the year was:
Rate = 355,680/14,400= 24.7 per hour
24.7 X 15,200= 375,440 350,680= 24,760
Overapplied

The costs incurred on jobs that are currently in

production but are not yet complete would appear in
the

A. Materials Control
account.
B. Finished Goods Control
account.
C. Work-in-Process Control
account.
D. Manufacturing Overhead
Control account.

Vision Enterprises manufactures digital video

equipment. For each unit, $3,000 of direct material
is used and there is $2,000 of direct manufacturing
labor at $20 per hour. Manufacturing overhead is
applied at $25 per direct manufacturing labor hour.
Calculate the profit earned on 50 units if each unit
sells for $9,000.
A. $65,000
B. $80,000
C. $75,000
D. $2,500

5) Vision Enterprises manufactures digital video equipment. For

each unit, $3,000 of direct material is used and there is $2,000 of
direct manufacturing labor at $20 per hour. Manufacturing overhead
is applied at $25 per direct manufacturing labor hour. Calculate the
profit earned on 50 units if each unit sells for $9,000.
A) $65,000
B) $80,000
C) $75,000
D) $2,500
Answer: C
Explanation: C) $3,000 + $2,000 + (($2,000/20) $25) = $7,500
Profit earned on 50 units = ($9,000 $7,500) 50 units = $75,000