At the beginning of the year, Vuncor, Inc, determined that estimated overhead costs would be $600,000, while actual overhead cost for the year totaled $650,000. Furthermore, it was determined that the estimated allocation basis would be 60,000 direct labor hours, while direct laborers actually worked 62,000 hours. What was the dollar amount of underallocated or overallocated manufacturing overhead? A. $50,000 underallocated B. $30,000 underallocated C. $30,000 overallocated D. $20,000 overallocated Which of the following is not a step in tracking product costs? A. Amortize B. Assign C. Adjust D. Accumulate FooRah Company is a consulting firm that uses a job order costing system. The firm expects to have $120,000 in indirect costs and $80,000 in direct labor costs. The cost of direct labor is $40 per hour. What is the predetermined overhead allocation rate for FooRah? A. $30 per direct labor hour B. $40 per direct labor hour C. $50 per direct labor hour D. $60 per direct labor hour Xell Corp is a sign company that uses a job order costing system. The firm expects to have $48,000 in indirect costs and $72,000 in direct labor costs. The cost of direct labor is $60 per hour. At the end of the period, overhead was overallocated by $35,000. What was Xell’s actual manufacturing overhead cost if work completed during the period required 3,800 direct labor hours? A. $117,000 B. $187,000 C. $345,000 D. $415,000 BoSun Manufacturing uses a job order costing system. During last period, direct labor costs totaled $150,000, based on $50 per hour, and actual overhead costs for the period totaled $212,000. The inventory value of completed product transferred out of Finished Goods Inventory was $432,000. If the predetermined overhead allocation rate for last period was $44 per direct labor hour and all Finished Goods Inventory was sold, what was the amount of Cost of Goods Sold reported on the income statement for last period? A. $794,000 B. $644,000 C. $512,000 D. $424,000
