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WGU C253- Advanced Managerial Accounting preassessment - Preassessment test Latest Update 2024 Version Questions and Verified Correct Answers Already Graded A+t 1 / 4
Preassessment: C253 Advanced Managerial Accounting
Product Costing: 18 Questions – 10 Job-Order and 8 Process
Job-Order Costing Questions 1 - 18 #1 Which industry uses job-order costing?Legal Services # 2 A corporation applies overhead based upon machine hours to build custom sailboats. At the beginning of the year, they budgeted the following costs to make 50,000 units using 100,000
machine hours:
Wages of employees who build the sailboats $50,000 Advertising $50,000 Aluminum mast installed in sailboat $350,000 Assembly shop supervisor wages $55,000 Depreciation of power tools $30,000 Sales commissions $140,000 Rent on the factory building $90,000 Presidents secretary salary $39,000 Electricity in the factory building $40,000 Executive office furniture depreciation $25,000 Depreciation on gym equipment in factory $35,000 Wages of employees in factory cafeteria $50,000 During the year, the company produced 52,000 units using 106,383 machine hours. Actual overhead for the year was $393,617.What is the predetermined overhead rate? $3.00
Step 1: determine the budgeted overhead cost items and total
55,000 + 30,000 + 90,000 + 40,000 + 35,000 + 50,000 = 300,000
Step 2: calculate the predetermined overhead rate using the budgeted machine hours
$300,000 / 100,000 = $3.00
# 3
A company has the following data for the year:
Estimated factory overhead $500,000 2 / 4
Estimated direct labor dollars $1,000,000 Estimated machine hours 250,000 Actual factory overhead $550,000 Actual direct labor dollars $1,100,000 Actual machine hours 270,000 Product A takes 3 machine hours and $20 of direct labor dollars.How much will the costs per unit of Product X (A) increase if the company changes from allocating overhead based upon machine hours to direct labor hours? $4.00 Step 1: Calculate the application rate based on machine hours $500,000 / 250,000 = $2 Step 2: Calculate the application rate based on labor dollars $500,000/$1,000,000 = $.50 Step 3: Calculate the applied OH rate based on machine hour rate: 3 * $2 = $6 Step 4: Calculate the applied OH rate based on labor dollars: $20 * $0.50 = $10 Step 5: Calculate the difference: $10 - $6 = $4 # 4
The following information was incurred by a company:
- Factory overhead costs are applied to jobs at the predetermined rate of $40 per labor-
- Factory utilities, factory depreciation, and factory insurance incurred is summarized
hour.Job B-1 incurred 1,500 labor-hours; Job B-2 incurred 2,200 labor-hours
bythese factory vouchers, invoices, and cost memos:
Utilities $22,000 Depreciation $35,000 Insurance $10,000
- The company purchased the following direct materials and indirect materials.
Material X $30,000 Material Y $40,000 Indirect material $10,000
d. Direct materials and indirect materials used are as follows:
Job B-1 Job B-2 Total Material X $15,000 $10,000 $25,000 3 / 4
Material Y $22,000 $15,000 $37,000 Indirect material $8,000
e. Factory labor incurred for the two jobs and indirect labor are as follows:
Job B-1 $6,000 Job B-2 $7,000 Indirect labor $3,000 What is the cost of Job B-1?
Step 1: Calculate the direct costs for Job B-1.
Material X $15,000 + Material Y $22,000 + Direct labor $6,000 = $43,000
Step 2: Apply overhead $40 per labor hour * 1,500 labor hours = $60,000
Step 3: Total $43,000 + 60,000 = $103,000
# 5 During June, a company produced 10 units of part number A3X1. The cost information
related to A3X1 includes the following:
Materials beginning inventory $4,000 Direct materials used $3,000 (30 machine hours used) Direct labor used $2,000 (15 total hours spent) Selling cost $1,000 Total actual overhead $8,000 What is the cost per unit of part number A3X1 if the company applies overhead at a predetermined rate of $150 per machine hour? $950 Step 1: Calculate direct costs: DM $3,000 + DL $2,000 = $5,000
Step 2: Apply overhead $150 * 30 = $4,500
Step 3: Calculate total cost: $5,000 + 4,500 = $9,500 Step 4: Calculate per unit cost: $9,500 / 10 units = $950 per unit # 6
A company has provided the following information for the upcoming year:
Estimated labor hours 15,000
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