Analysis of overheads and calculation of under or over application of overheads.
1. Woodman Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Estimated and actual data for direct labor and manufacturing overhead for last year are as follows:
The manufacturing overhead for Woodman Company for last year was:
a. underapplied by $40,000
b. overapplied by $40,000
c. overapplied by $20,000
d. underapplied by $20,000
2. During July at Loeb Corporation, $83,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. The journal entry to record the requisition from the storeroom would include a:
a. debit to Work in Process of $79,000
b. credit to Manufacturing Overhead of $4,000
c. debit to Work in Process of $83,000
d. debit to Raw Materials of $83,000
3. Piekos Corporation incurred $90,000 of actual Manufacturing Overhead costs during June. During the same period, the Manufacturing Overhead applied to Work in Process was $92,000. The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:
a. debit to Work in Process of $90,000
b. debit to Manufacturing Overhead of $92,000
c. credit to Manufacturing Overhead of $92,000
d. credit to Work in Process of $90,000
4.Wayne Company's beginning and ending inventories for the month of June were as follows: Wayne applies manufacturing overhead cost to jobs based on direct labor-hours, and the predetermined rate is $5.75 per direct labor-hour. The company does not close underapplied or overapplied manufacturing overhead to Cost of Goods Sold until the end of the year. What is the amount of cost of goods manufactured?
a. $585,000
b. $508,750
c. $502,000
d. $487,750