Job Order Costing

Namjoon Corporation has two manufacturing departments—Machining and Customizing.
The company used the fol
Machining Customizing Total

Estimated total machine-hours (MHs) 1,000 4,000 5,000
Estimated total fixed manufacturing
$ 4,700.00 $ 9,200.00 $ 13,900.00
overhead cost
Estimated variable manufacturing
$ 1.10 $ 2.60
overhead cost per MH
During the most recent month, the company started and completed two jobs—Job B and Job K. There were no begin
Job B Job K
Machining machine-hours 700 300
Customizing machine-hours 1,600 2,400
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base
The manufacturing overhead applied to Job K is closest to: (Round your intermediate calculations to 2 decimal place
ANSWER:
Machining Department predetermined overhead rate:
Estimated fixed manufacturing overhead $ 4,700
Estimated variable manufacturing overhead ($1.10 per MH ×
1,000 MHs) 1,100
Estimated total manufacturing overhead cost (a) $ 5,800
Estimated total machine-hours (b) 1,000 MHs
Departmental predetermined overhead rate (a) ÷ (b) $ 5.80 per MHs
Customizing Department predetermined overhead rate:

4,000 MHs) 10,400
Departmental predetermined overhead rate (a) ÷ (b) $ 4.90 per MHs
Manufacturing overhead applied to Job K:

Machining ($5.80 per MH × 300 MHs) $ 1,740
Customizing ($4.90 per MH × 2,400 MHs) 11,760
Total manufacturing overhead applied $ 13,500
The company used the following data at the beginning of the year to calculate predetermined overhead rates:
ob K. There were no beginning inventories. Data concerning those two jobs follow:
ours as the allocation base in both production departments.

ulations to 2 decimal places.)
Seokjin Corporation has two production departments, Machining and Customizing.
The company uses a job-order costing system and computes a predetermined overhead rate in each production depar
The Machining Department's predetermined overhead rate is based on machine-hours and the Customizing Departm
At the beginning of the current year, the company had made the following estimates:
Machining Customizing
Machine-hours 17,000 15000
Direct labor-hours 3,000 6000
Total fixed manufacturing overhead cost $ 102,000 $ 61,200
Variable manufacturing overhead per machine-hour $ 1.70
Variable manufacturing overhead per direct labor-hour $ 4.10
During the current month the company started and finished Job T268. The following data were recorded for this job:
Job T268: Machining Customizing

Machine-hours 80 30
Direct labor-hours 30 50
Direct materials $ 720 $ 380
Direct labor cost $ 900 $ 1,500
The total job cost for Job T268 is closest to: (Round your intermediate calculations to 2 decimal places.)
ANSWER:
Machining Department Overhead Cost = Fixed Manufacturing Overhead Cost + (Variable Over
= $102,000 + ($1.70 per machine-hour × 17,000 machin
= $102,000 + $28,900
= $130,900
Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost ÷ Estim

= $130,900 ÷ 17,000 machine-hours
= $7.70 per machine-hour
Overhead Applied to a Particular Job = Predetermined Overhead Rate × Amount of the Alloca
= $7.70 per machine-hour × 80 machine-hours
= $616
Customizing Department Overhead Cost = Fixed Manufacturing Overhead Cost + (Variable Over
= $61,200 + ($4.10 per direct labor-hour × 6,000 direct
= $61,200 + $24,600
= $85,800

= $85,800 ÷ 6,000 direct labor-hours
= $14.30 per direct labor-hour
= $14.30 per direct labor-hour × 50 direct labor-hours
= $715
Direct labor 900 1,500
Manufacturing overhead applied 616 715
Total cost of Job T268
n each production department.
e Customizing Department's predetermined overhead rate is based on direct labor-hours.
ere recorded for this job:
ecimal places.)
ad Cost + (Variable Overhead Cost per Machine-Hour × Total Machine-Hours in the Department)
ne-hour × 17,000 machine-hours)
ng Overhead Cost ÷ Estimated Total Amount of the Allocation Base Incurred
e × Amount of the Allocation Base Incurred by the Job

machine-hours
ad Cost + (Variable Overhead Cost per Direct Labor-Hour × Total Direct Labor-Hours in the Department)
bor-hour × 6,000 direct labor-hours)

× 50 direct labor-hours
Total
$ 1,100
2,400
1,331
$ 4,831
Yoongi Corporation has two production departments, Machining and Customizing.

Machine-hours 60 30
The amount of overhead applied in the Customizing Department to Job T272 is closest to: (Round your intermedia
ANSWER:
= $56,400 + $19,800
= $76,200

= $762
e Customizing Department's predetermined overhead rate is based on direct labor-hours.
Round your intermediate calculations to 2 decimal places.)

Hoseok Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on d
The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost
variable manufacturing overhead of $2.40 per direct labor-hour, and 70,000 direct labor-hours.
The company has provided the following data concerning Job T498 which was recently completed:
Number of units in the job 40

Total direct labor-hours 80
Direct materials $ 950
Direct labor cost $ 2,720
The amount of overhead applied to Job T498 is closest to: (Round your intermediate calculations to 2 decimal pl
ANSWER:
Estimated Total Manufacturing Overhead Cost = Estimated Total Fixed Manufacturing Overhead Cost + (Est
= $497,000 + ($2.40 per direct labor-hour × 70,000 direct labo
= $497,000 + $168,000
= $665,000
Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost ÷ Estimated

Overhead Applied to a Particular Job = Predetermined Overhead Rate × Amount of the Allocation B
= $760
overhead rate based on direct labor-hours.
facturing overhead cost of $497,000,
ng Overhead Cost + (Estimated Variable Overhead Cost per Unit of the Allocation Base × Estimated Total Amount of the Allocation Base)
hour × 70,000 direct labor-hours)
erhead Cost ÷ Estimated Total Amount of the Allocation Base
mount of the Allocation Base Incurred by the Job

ect labor-hours
mount of the Allocation Base)
Jimin Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on dir
The company based its predetermined overhead rate for the current year on the following data:
Total direct labor-hours 30,000

Total fixed manufacturing overhead cost $ 189,000
The predetermined overhead rate is closest to:
ANSWER:
Estimated Total Manufacturing Overhead Cost = Estimated Total Fixed Manufacturing Overhead Cost +
= $189,000 + $75,000
= $264,000

verhead rate based on direct labor-hours.
acturing Overhead Cost + (Estimated Variable Overhead Cost per Unit of the Allocation Base × Estimated Total Amount of the Allocation B
abor-hour × 30,000 direct labor-hours)
g Overhead Cost ÷ Estimated Total Amount of the Allocation Base

tal Amount of the Allocation Base)
Taehyung Corporation has two production departments, Milling and Customizing.
The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing Department'
Milling Customizing
Machine-hours 17,000 12,000
Direct labor-hours 1,000 9,000

Machine-hours 80 30
The amount of overhead applied in the Customizing Department to Job T898 is closest to: (Round your intermedia
ANSWER:
= $81,000 + $38,700
= $119,700

= $119,700 ÷ 9,000 direct labor-hour
= $665
ustomizing Department's predetermined overhead rate is based on direct labor-hours.
Round your intermediate calculations to 2 decimal places.)

Jungkook Corporation has two production departments, Machining and Finishing.
The Machining Department's predetermined overhead rate is based on machine-hours and the Finishing Department'
Machining Finishing
During the current month the company started and finished Job K928. The following data were recorded for this job
Job T268: Machining Finishing

Machine-hours 90 10
The predetermined overhead rate for the Machining Department is closest to:
ANSWER:
= $136,800 + $34,200
= $171,000

= $171,000 ÷ 19,000 machine-hours
e Finishing Department's predetermined overhead rate is based on direct labor-hours.
d Cost + (Variable Overhead Cost per Machine-Hour × Total Machine-Hours in the Department)
g Overhead Cost ÷ Estimated Total Amount of the Allocation Base Incurred

Soobin Corporation has two manufacturing departments—Machining and Customizing.
Machining Customizing Total

Estimated total machine-hours (MHs) 1,000 9,000 10,000
Estimated total fixed manufacturing
$ 4,800 $ 23,400 $ 28,200
overhead cost
Estimated variable manufacturing
$ 1.10 $ 2.50
overhead cost per MH
During the most recent month, the company started and completed two jobs—Job A and Job J. There were no beginn
Job A Job J
Direct materials $ 12,000 $ 7,700
Direct labor cost $ 20,700 $ 6,400
Machining machine-hours 700 300
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base
Further assume that the company uses a markup of 50% on manufacturing cost to establish selling prices.
The calculated selling price for Job A is closest to: (Round your intermediate calculations to 2 decimal places.)
ANSWER:
Machining Department Predetermined Overhead Rate:
1,000 MHs) 1,100
Departmental Predetermined Overhead Rate (a) ÷ (b) $ 5.90 per MHs
Customizing Department Predetermined Overhead Rate:

9,000 MHs) 22,500
Departmental Predetermined Overhead Rate (a) ÷ (b) $ 5.10 per MHs
Manufacturing Overhead Applied to Job A:

Machining ($5.90 per MH × 700 MHs) $ 4,130
Customizing ($5.10 per MH × 3,600 MHs) 18,360
Total manufacturing overhead applied $ 22,490
The selling price for Job A would be calculated as follows:

Direct materials $ 12,000
Direct labor cost 20,700
Manufacturing overhead applied 22,490
Total manufacturing cost $ 55,190
Markup (50%) 27,595
Selling price $ 82,785
ed overhead rates:
ob J. There were no beginning inventories. Data concerning those two jobs follow:
ours as the allocation base in both production departments.

selling prices.
ns to 2 decimal places.)
Yeonjun Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead
The predetermined overhead rates for the year are 200% of direct labor cost for Department A and 50% of direct lab
Job 436, started and completed during the year, was charged with the following costs:
Dept. A Dept. B
Direct labor ? $ 60,000
Manufacturing overhead $ 80,000 ?
The total manufacturing cost assigned to Job 436 was:
ANSWER:
Department A Manufacturing Overhead = Predetermined overhead rate × Amount of the allocation base incurre
$80,000 = 200% × Direct Labor
Direct Labor = $40,000
Department B Manufacturing Overhead = Predetermined overhead rate × Amount of the allocation base incurre
= 50% × $60,000
= $30,000
Dept. A Dept. B
Direct labor 40,000 60,000
Manufacturing overhead 80,000 30,000
Total product cost $ 170,000 $ 100,000
or cost to apply manufacturing overhead to jobs.
or Department A and 50% of direct labor cost for Department B.
× Amount of the allocation base incurred
× Amount of the allocation base incurred
Total
$ 270,000
Beomgyu Corporation has two production departments, Forming and Assembly.
The Forming Department's predetermined overhead rate is based on machine-hours and the Assembly Department's
Forming Assembly
Job T924: Forming Assembly

Machine-hours 70 20
Direct labor cost $ 630 $ 840
The estimated total manufacturing overhead for the Forming Department is closest to:
ANSWER:
Forming Department Overhead Cost = Fixed Manufacturing Overhead Cost + (Variable Over
= $102,400 + $36,800
= $139,200
Assembly Department's predetermined overhead rate is based on direct labor-hours.
Taehyun Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning
The company has provided the following data for the most recent year.
Estimated total fixed manufacturing overhead from the

beginning of the year $ 310,000
Estimated activity level from the beginning of the year 20,000 machine-hours
Actual total fixed manufacturing overhead $ 338,000
Actual activity level 18,300 machine-hours
The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to:
ANSWER:
Estimated total fixed manufacturing overhead (a) $ 310,000
Estimated activity level (b) 20,000
Predetermined overhead rate (a) ÷ (b) $ 16
Actual activity level 18,300
Manufacturing overhead applied $ 283,650
calculates at the beginning of each year.
e period is closest to: (Round your intermediate calculations to 2 decimal places.)

Huening Kai Corporation has two manufacturing departments—Machining and Assembly.
Estimated total machine-hours (MHs) 7,000 3,000
Estimated total fixed manufacturing overhead cost $ 39,200 $ 6,600
Estimated variable manufacturing overhead cost per
$ 1.90 $ 2.10
MH
During the most recent month, the company started and completed two jobs—Job B and Job G. There were no begin
Job B Job G
Direct labor cost $ 22,000 $ 8,900
Machining machine-hours 4,800 2,200
Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. Th
ANSWER:
The first step is to calculate the estimated total overhead costs in the two departments.
Machining
Estimated variable manufacturing overhead ($1.90
per MH × 7,000 MHs) 13,300
Estimated total manufacturing overhead cost $ 52,500
Assembly
Estimated variable manufacturing overhead ($1.90
per MH × 7,000 MHs) 6,300
The second step is to combine the estimated manufacturing overhead costs in the two departments ($52,500 + $12,90

Estimated total machine hours 10,000 MHs
Predetermined overhead rate $ 6.54 per MH
edetermined overhead rates:
Total
10,000
$ 45,800
b B and Job G. There were no beginning inventories. Data concerning those two jobs follow:
ad rate based on machine-hours. That predetermined manufacturing overhead rate is closest to:
two departments ($52,500 + $12,900 = $65,400) to calculate the plantwide predetermined overhead rate as follow:
Jungwon Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhe
The Corporation has provided the following estimated costs for the next year:
Direct materials $ 6,000

Direct labor $ 20,000
Rent on factory building $ 15,000
Sales salaries $ 25,000
Depreciation on factory equipment $ 8,000
Indirect labor $ 12,000
Production supervisor's salary $ 15,000
Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate p
ANSWER:
Rent on factory building $ 15,000
Depreciation on factory equipment 8,000
Indirect labor 12,000
Production supervisor's salary 15,000
Manufacturing overhead $ 50,000
Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost ÷ Estimated Total Amoun
rs to apply manufacturing overhead to jobs.
he predetermined overhead rate per hour will be:
d Cost ÷ Estimated Total Amount of the Allocation Base Incurred

Heeseung Corporation has two production departments, Machining and Finishing.
The Machining Department's predetermined overhead rate is based on machine-hours and the Finishing Department'
Machining Finishing
During the current month the company started and finished Job K368. The following data were recorded for this job
Job K368: Machining Customizing

Machine-hours 80 30
The amount of overhead applied in the Machining Department to Job K368 is closest to: (Round your intermediate c
ANSWER:
= $102,600 + $37,800
= $140,400

= $140,400 ÷ 18,000 machine-hours
= $624
e Finishing Department's predetermined overhead rate is based on direct labor-hours.
ound your intermediate calculations to 2 decimal places.)

machine-hours
Jay Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on mach
variable manufacturing overhead of $3.00 per machine-hour, and 70,000 machine-hours.
The company recently completed Job P233 which required 60 machine-hours.
The amount of overhead applied to Job P233 is closest to: (Round your intermediate calculations to 2 decimal pla
ANSWER:
= $105,000 + ($3.00 per machine-hour × 70,000 machine
= $105,000 + $210,000
= $315,000

= $315,000 ÷ 70,000 machine-hours
Overhead Applied to a Particular Job = Predetermined Overhead Rate × Amount of the Allocat
= $270
rhead rate based on machine-hours.
ufacturing overhead cost of $105,000,
acturing Overhead Cost + (Estimated Variable Overhead Cost per Unit of the Allocation Base × Estimated Total Amount of the Allocation B
e-hour × 70,000 machine-hours)
× Amount of the Allocation Base Incurred by the Job

machine-hours
Jake Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on mac
The company based its predetermined overhead rate for the current year on the following data:
Total machine-hours 70,000

Total fixed manufacturing overhead cost $ 294,000
Variable manufacturing overhead per machine-hour $ 2
Recently, Job M825 was completed with the following characteristics:

Total machine-hours 80
The total job cost for Job M825 is closest to: (Round your intermediate calculations to 2 decimal places.)
ANSWER:
= $294,000 + ($2.30 per machine-hour × 70,000 machine-
= $294,000 + $161,000
= $455,000
Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost ÷ Estima

= $455,000 ÷ 70,000 machine-hours
Overhead Applied to a Particular Job = Predetermined Overhead Rate × Amount of the Allocati
= $520

Direct labor 1,840
Manufacturing overhead applied 520
Total cost of Job M825 $ 3,025
verhead rate based on machine-hours.
2 decimal places.)
acturing Overhead Cost + (Estimated Variable Overhead Cost per Unit of the Allocation Base × Estimated Total Amount of the Allocation

machine-hours
Sunghoon Corporation has two production departments, Machining and Customizing.
predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had m
Machine-hours 80 30
The total amount of overhead applied in both departments to Job T268 is closest to: (Round your intermediate calc
ANSWER:
= $102,000 + $28,900
= $130,900

= $130,900 ÷ 17,000 machine-hours
= $616
= $61,200 + $24,600
= $85,800

= $715
Overhead Applied to Job T268

Machining Department $ 616
Customizing Department 715
Total $ 1,331
e Customizing Department's
year, the company had made the following estimates:
your intermediate calculations to 2 decimal places.)

machine-hours

Sunoo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on m
The company has provided the following data concerning Job A496 which was recently completed:

The total job cost for Job A496 is closest to: (Round your intermediate calculations to 2 decimal places.)
ANSWER:
= $237,000 + $117,000
= $354,000

= $354,000 ÷ 30,000 machine-hours
= $944

Direct labor 2,160
Total cost of Job A496 $ 3,604
overhead rate based on machine-hours.
nufacturing overhead cost of $237,000,
2 decimal places.)

0 machine-hours
Ni-Ki Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on dir
variable manufacturing overhead of $3.50 per direct labor-hour, and 30,000 direct labor-hours.
Total direct labor-hours 100

The total job cost for Job A477 is closest to: (Round your intermediate calculations to 2 decimal places.)
ANSWER:
= $90,000 + ($3.50 per direct labor-hour × 30,000 direct la
= $90,000 + $105,000
= $195,000

= $650

Direct labor 2,800
overhead rate based on direct labor-hours.
2 decimal places.)

100 direct labor-hours
HYBE Labels Corporation uses a job-order costing system with a single plantwide predetermined overhead rate base

If the company marks up its unit product costs by 40% then the selling price for a unit in Job A496 is closest to:
ANSWER:
= $237,000 + $117,000
= $354,000

= $354,000 ÷ 30,000 machine-hours
= $944

Direct labor 2,160
Total cost of Job A496 (a) $ 3,604

Number of units (b) 20
Unit product cost (a) ÷ (b) $ 180.20
Unit product cost for Job A496 $ 180.20

Markup (40% × $180.20) 72.08
Selling price $ 252
ermined overhead rate based on machine-hours.
ob A496 is closest to: (Round your intermediate calculations to 2 decimal places.)

0 machine-hours

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Namjoon Corporation has two manufacturing departments—Machining and Customizing.

The company used the fol

Machining Customizing Total

Customizing Department predetermined overhead rate:

Manufacturing overhead applied to Job K:

ours as the allocation base in both production departments.

Job T268: Machining Customizing

Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost ÷ Estim

Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost ÷ Estim

ere recorded for this job:

ng Overhead Cost ÷ Estimated Total Amount of the Allocation Base Incurred

e × Amount of the Allocation Base Incurred by the Job

ng Overhead Cost ÷ Estimated Total Amount of the Allocation Base Incurred

e × Amount of the Allocation Base Incurred by the Job

Job T272: Machining Customizing

Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost ÷ Estim

ere recorded for this job:

Round your intermediate calculations to 2 decimal places.)

ng Overhead Cost ÷ Estimated Total Amount of the Allocation Base Incurred

e × Amount of the Allocation Base Incurred by the Job

Number of units in the job 40

Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost ÷ Estimated

ulations to 2 decimal places.)

erhead Cost ÷ Estimated Total Amount of the Allocation Base

mount of the Allocation Base Incurred by the Job

Total direct labor-hours 30,000

The predetermined overhead rate is closest to:

Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost ÷ Estim

g Overhead Cost ÷ Estimated Total Amount of the Allocation Base

Job T898: Machining Customizing

Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost ÷ Estim

ere recorded for this job:

Round your intermediate calculations to 2 decimal places.)

ng Overhead Cost ÷ Estimated Total Amount of the Allocation Base Incurred

e × Amount of the Allocation Base Incurred by the Job

Job T268: Machining Finishing

Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost ÷ Estim

ere recorded for this job:

g Overhead Cost ÷ Estimated Total Amount of the Allocation Base Incurred

Machining Customizing Total

Customizing Department Predetermined Overhead Rate:

Manufacturing Overhead Applied to Job A:

The selling price for Job A would be calculated as follows:

ours as the allocation base in both production departments.

The total manufacturing cost assigned to Job 436 was:

× Amount of the allocation base incurred

× Amount of the allocation base incurred

Job T924: Forming Assembly

ere recorded for this job:

Estimated total fixed manufacturing overhead from the

e period is closest to: (Round your intermediate calculations to 2 decimal places.)

Estimated total manufacturing overhead cost $ 65,400

Direct materials $ 6,000

he predetermined overhead rate per hour will be:

d Cost ÷ Estimated Total Amount of the Allocation Base Incurred

Job K368: Machining Customizing

Predetermined Overhead Rate = Estimated Total Manufacturing Overhead Cost ÷ Estim

ere recorded for this job: