Walston’s Designs considers the balance of manufacturing overhead to be material in amount. How much is the adjusted balance of Cost of Goods Sold to be reported by Walston on its income statement? A. $300,000 B. $293,250 C. $306,750 D. $294,313 139. Raindrop Gear utilizes job-order costing for production of umbrellas. Each division establishes its own estimates regarding overhead, which are as follows: Division A Division B estimated overhead $78,750 $240,000 Total estimated machine hours 26,250 15,000 Total estimated direct labor costs $262,500 $120,000 If Division A allocates overhead on the basis of direct labor costs, and Division B allocates overhead based on machine hours, what will be the predetermined overhead rate for each division? Division A Division B A. $3.00 per direct labor dollar $16.00 per machine hour B. $3.00 per machine direct labor dollar $0.625 per machine hour C. $0.30 per machine direct labor dollar $16.00 per machine hour D. $0.30 per machine direct dollar $2.00 per machine hour 140. Kamins Company uses a predetermined overhead rate of $6.00 per machine hour. Overhead was underapplied by $40,000 for the year, and actual machine hours totaled 70,000. How much was the actual overhead cost? A. $460,000 B. $380,000 C. $420,000 D. $360,000 141. Templeton Widgets applies manufacturing overhead on direct labor hours. It budgeted 123,000 direct labor hours at $11.50 per labor hour and incurred 125,000 direct labor hours at an actual total labor cost of $1,500,000. It incurred $720,000 of manufacturing overhead and estimated the manufacturing overhead cost to be $707,250 for the period. What was the predetermined overhead rate? A. $0.50 B. $5.75 C. $0.48 D. $5.76 142. The balances in Dellco Company’s accounts at the end of the period were: Work in Process Inventory $ 40,000 Finished Inventory 60,000
Walston’s Designs considers the balance of manufacturing overhead to be material in amount. How much is the adjusted balance of Cost of Goods Sold to be reported by Walston on its income statement? A. $300,000 B. $293,250 C. $306,750 D. $294,313 139. Raindrop Gear utilizes job-order costing for production of umbrellas. Each division establishes its own estimates regarding overhead, which are as follows: Division A Division B estimated overhead $78,750 $240,000 Total estimated machine hours 26,250 15,000 Total estimated direct labor costs $262,500 $120,000 If Division A allocates overhead on the basis of direct labor costs, and Division B allocates overhead based on machine hours, what will be the predetermined overhead rate for each division? Division A Division B A. $3.00 per direct labor dollar $16.00 per machine hour B. $3.00 per machine direct labor dollar $0.625 per machine hour C. $0.30 per machine direct labor dollar $16.00 per machine hour D. $0.30 per machine direct dollar $2.00 per machine hour 140. Kamins Company uses a predetermined overhead rate of $6.00 per machine hour. Overhead was underapplied by $40,000 for the year, and actual machine hours totaled 70,000. How much was the actual overhead cost? A. $460,000 B. $380,000 C. $420,000 D. $360,000 141. Templeton Widgets applies manufacturing overhead on direct labor hours. It budgeted 123,000 direct labor hours at $11.50 per labor hour and incurred 125,000 direct labor hours at an actual total labor cost of $1,500,000. It incurred $720,000 of manufacturing overhead and estimated the manufacturing overhead cost to be $707,250 for the period. What was the predetermined overhead rate? A. $0.50 B. $5.75 C. $0.48 D. $5.76 142. The balances in Dellco Company’s accounts at the end of the period were: Work in Process Inventory $ 40,000 Finished Inventory 60,000