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# What is the predetermined overhead rate \$2 63 per direct labour hour

What is the predetermined overhead rate?

a.\$2.63 per direct labour hour

b.\$3 per direct labour hour

c.\$3.42 per direct labour hour

d.\$4.00 per direct labour hour

22.Refer to Lola Inc. What is the overhead variance for Lola?

a.\$400 overapplied

b.\$400 underapplied

c.\$76,000 overapplied

d.\$76,000 underapplied

Mitchell’s Softball Gloves Company estimated the following yearly data at the beginning of the year:

Assembly DepartmentTesting DepartmentTotal

Direct Labour Hours142,50032,500175,000

Machine Hours32,00065,00097,000

Mitchell’s uses departmental overhead rates. In the assembly department, direct labour hours are used to apply overhead. Machine hours are used to apply overhead in the testing department.

Actual data for August are as follows:

Assembly Department Testing DepartmentTotal

Direct Labour Hours13,5002,43015,930

Machine Hours4,02011,00015,020

23.Refer to Mitchell’s Softball Gloves Company. Suppose Mitchell’s decides to continue using departmental overhead rates. What are the predetermined rates for the assembly and testing departments, respectively?

a.assembly: \$4 per direct labour hour; testing: \$2 per machine hour

b.assembly: \$2 per direct labour hour; testing: \$4 per machine hour

c.assembly: \$4 per direct labour hour; testing: \$4 per direct labour hour

d.assembly: \$7.22 per machine hour; testing: \$7.22 per machine hour

24.Refer to Mitchell’s Softball Gloves Company. Suppose Mitchell’s decides to continue using departmental overhead rates and a job spends 4 hours in assembly and 3 hours in testing. What is the amount of overhead charged to the job?

a.\$20

b.\$22

c.\$28

d.\$50.54

25.Refer to Mitchell’s Softball Gloves Company. Which of the following best represents the departmental overhead rates?

a.Applied overhead for the testing department is \$4,860.

b.Applied overhead for the assembly department is \$54,000.

c.Applied overhead for both departments combined is \$63,720.

d.Overhead for the assembly department is underapplied.

26.Refer to Mitchell’s Softball Gloves Company. Suppose that instead of departmental rates, Mitchell’s uses a plantwide overhead rate that is based on direct labour hours. What is the predetermined overhead rate rounded to the nearest cent?

a.\$0.52 per direct labour hour

b.\$2.57 per direct labour hour

c.\$4 per direct labour hour

d.\$5 per direct labour hour

27.What rarely occurs regarding the overhead variance?

28.Which of the following total costs is included in the unit cost of a job?

a.the total costs of materials purchased

b.the total costs of labour worked on the in the factory

c.the total costs of actual overhead

d.the total costs of applied overhead

29.Smith Company has applied overhead of \$73,000 and actual overhead of \$87,600 for the month of November. It applies overhead on the basis of direct labour hours, which equalled 14,600 in November. Overhead for the year was estimated to be \$900,000. What are the direct labour hours estimated for the year?

a.150,000

b.170,000

c.175,200

d.180,000

30.At the beginning of the year, Wilson Company estimated the following for the coming year:

Direct labour hours60,000

Wilson used normal costing and applies overhead on the basis of direct labour hours. For the month of September, direct labour hours equalled 9,350 and actual overhead equalled \$46,750.

What is the overhead applied to production in September?

a.\$30,000

b.\$46,750

c.\$51,600

d.\$56,100

Mar 13 2020 View more View Less