Question 1: During FY 2019, Dorchester Company plans to sell Widgets for $10 a unit. Current variable costs are $5 a unit and fixed costs are expected to total of $112,000. Use this information to determine the dollar value of sales for Dorchester to breakeven.
Question 2: Baltimore Company uses a job order cost system and applies overhead based on estimated rates. The overhead application rate is based on total estimated overhead costs of $210,000 and direct labor hours of 9,400. During the month of February 2019, actual direct labor hours of 8,700 were incurred. Use this information to determine the amount of factory overhead that was applied in February.
Question 3: During March 2019, Annapolis Corporation recorded $41,000 of costs related to factory overhead. Alpha's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $43,100 would be incurred, and 5,000 direct labor hours would be worked. During March, 4,750 hours were actually worked. Use this information to determine the amount of factory overhead that was (over) or under applied.
Question 4: On May 21, 2019, Christine worked 5.5 hours on Job A-1, and 3 hours on general "overhead activities." Christine is paid $16 per hour. Overhead is applied based on $30 per direct labor hour. Additionally, on May 21 Job A-1 requisitioned and entered into production $270 of direct material. On May 21, Christine, while working on Job A-1 used $27 of indirect material. Indirect material is included in the overhead application rate. Use this information to determine the total cost that should have been recorded in the Work in Process for Job A-1 on May 21?
Question 5: Bethesda Company's April 1, 2019 beginning work in process was 800 units. During April an additional 2,400 units were put into production. At the end of April all units were completed except for 975 units. Use this information to determine number of units completed.
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