1. Manufacturing overhead (MOH) is applied to jobs using normal costing (used in chapter 2 & 3) by taking the predetermi

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1. Manufacturing overhead (MOH) is applied to jobs using normal
costing (used in chapter 2 & 3) by taking the predetermined
overhead rate (POHR) and multiplying it by the estimated (budgeted)
allocation base (ideally the cost driver).
Group of answer choices:
a) True
b) False
2. Which type of overhead rate is overly-simplistic?
Group of answer choices:
a) Division
b) Departmental
c) Plantwide
3. Sweeten Company had no jobs in progress at the beginning
of March and no beginning inventories. The company has two
manufacturing departments--Molding and Fabrication. It started,
completed, and sold only two jobs during March—Job P and Job Q. The
following additional information is available for the company as a
whole and for Jobs P and Q (all data and questions relate to the
month of March):
Molding
Fabrication
Total
Estimated total machine-hours used
2,500
1,500
4,000
Estimated total fixed manufacturing overhead
$
10,000
$
15,000
$
25,000
Estimated variable manufacturing overhead per machine-hour
$
1.40
$
2.20
Job P
Job Q
Direct materials
$
13,000
$
8,000
Direct labor cost
$
21,000
$
7,500
Actual machine-hours used:
Molding
1,700
800
Fabrication
600
900
Total
2,300
1,700
Sweeten Company had no underapplied or overapplied manufacturing
overhead costs during the month.
What was the company’s departmental predetermined overhead rate
in the Molding Department? (Round your answer to 2
decimal places.)
Group of answer choices:
a) $12.20 per DLH
b) $5.40 per DLH
c) $5.40 per MH
d) $12.20 per MH
4.
Sweeten Company had no jobs in progress at the beginning of
March and no beginning inventories. The company has two
manufacturing departments--Molding and Fabrication. It started,
completed, and sold only two jobs during March—Job P and Job Q. The
following additional information is available for the company as a
whole and for Jobs P and Q (all data and questions relate to the
month of March):
Molding
Fabrication
Total
Estimated total machine-hours used
2,500
1,500
4,000
Estimated total fixed manufacturing overhead
$
10,000
$
15,000
$
25,000
Estimated variable manufacturing overhead per machine-hour
$
1.40
$
2.20
Job P
Job Q
Direct materials
$
13,000
$
8,000
Direct labor cost
$
21,000
$
7,500
Actual machine-hours used:
Molding
1,700
800
Fabrication
600
900
Total
2,300
1,700
Sweeten Company had no underapplied or overapplied manufacturing
overhead costs during the month.
If the company uses the departmental manufacturing overhead
rates, how much manufacturing overhead was applied from the
Fabrication Department to Job P? (Do not round
intermediate calculations.)
Group of answer choices:
a) $4,320
b) $9,180
c) $7,320
d) $10,980