GBA 2004, Ch2

In each of the following situations, determine whether job costing or process costing
would be more appropriate.

a. An accounting firm
b. An oil refinery
c. A custom furniture manufacturer
d. A tire manufacturer
e. A textbook publisher
f. A pharmaceutical company
g. An advertising agency
h. An apparel manufacturing factory
i. A flour mill
j. A paint manufacturer
k. A medical care facility
l. A landscaping company
m. A cola-drink-concentrate producer
n. A movie studio
o. A law firm
p. A commercial aircraft manufacturer
q. A management consulting firm
r. A breakfast-cereal company
s. A catering service
t. A paper mill
u. An auto repair garage
GBA 2004, Ch2

Waheed Company uses a normal costing system. It allocates manufacturing overhead

costs using a budgeted rate per machine-hour and actual machine-hours. The following
data are available for 2010:

Budgeted manufacturing overhead costs $3,420,000

Budgeted machine-hours 190,000
Actual manufacturing overhead costs 3,492,000
Actual machine-hours 195,000

REQUIRED:

1. Calculate the budgeted manufacturing overhead rate.

2. Compute the manufacturing overhead allocated during 2010.
3. Calculate the amount of under-allocated or over-allocated manufacturing
overhead.