Mock Mid-Term Test Management Accounting

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Mock Mid Term Test October 2013 Please note the actual exam may contain a different number of questions. Boston Manufacturing Company had the following cost information for May. The labor rate in Department 1 is $10.50 and in Department 2 is $9.50. The overhead rate in Department 1 is based on direct labor-hours, at $4.50 per hour; in Department 2 the rate is 125 percent of direct labor cost. Boston had no beginning work-in-process inventory for May. Q1. What is the cost of Direct Materials that is assigned to Job 88Y (a) 5 367.60 (b) 3 849.78 (c) 9217.38 (d) 16 652.88 (e) 16 856.37 Q2. What is the cost of Direct Labor for Job 88Z (a) 6 436.50 (b) 5 871.00 (c) 12 307.50 (d) 10 097.25 (e) 7 338.75 Q3. What is the cost of Manufacturing Overhead for Job 88X (a) 5 817.00 (b) 2 493.00 (c) 3 312.00 (d) 3 924.28 (e) 7 338.75 First, calculate the materials cost for each job: Then, determine the labor cost and applied overhead for each job: Rockingham Manufacturing Company builds highly sophisticated engine parts for cars competing in stock racing and drag racing. The company uses a normal costing system that applies factory overhead on the basis of direct labor-hours. For the current year the company estimated that it would incur $256,000 in factory overhead costs and 16,000 direct labor-hours. The April 1 balance in inventory accounts follow: Job Y12 is the only job in process on April 1. The following transactions were recorded for the month of April: a. Purchased materials on account, $160,000 b. Issued $180,000 of materials to production, $6,000 of which was for indirect materials. Cost of direct materials issued: c. Incurred and paid payroll cost of $40,920 Direct labor cost ($20/hour; total 1,196 hours) d. Recognize deprecation (overhead) for the month:

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