1.Hamilton Company uses job-order costing. Manufacturing overhead is applied using a predetermined rate of 150% of direct labor cost. Any underapplied or overapplied manufacturing overhead is closed to Cost of Goods Sold at the end of each month. Additional information is available as follows:
° Job 101 was the only job in process at January 31. The job cost sheet for this job contained the following costs at the beginning of the month:
- direct materials 4,000
- direct labor 2,000
- applied manufactturing overead 3,000
° Jobs 102, 103, and 104 were started during February.
° Direct materials requisitions for February totaled $26,000.
° Direct labor cost of $20,000 was incurred for February.
° Actual manufacturing overhead was $32,000 for February.
° The only job still in process at February 28 was Job 104, with costs of $2,800 for direct materials and $1,800 for direct labor.
For the month of February, the manufacturing overhead was:
- $700 overapplied
- $1,000 overapplied
- $2,000 overapplied
- $2,000 underapplied
2.Rediger Inc. a manufacturing company, has provided the following data for the month of June. The balance in the Work in Process inventory account was $22,000 at the beginning of the month and $17,000 at the end of the month. During the month, the company incurred direct materials cost of $55,000 and direct labor cost of $28,000. The actual manufacturing overhead cost incurred was $53,000. The manufacturing overhead cost applied to jobs was $51,000. The cost of goods manufactured for June was:
a. $141,000
b. $139,000
c. $134,000
d. $136,000