Quiz.

Normal Costing
1. Predetermined Overhead Rate (POR) Calculation:
Given:
Estimated total manufacturing overhead costs for the period: $200,000
Estimated total allocation base (e.g., direct labor hours, machine hours, etc.) for the
period: 10,000 direct labor hours
Required: Compute the predetermined overhead rate (POR)

2. Overhead Allocation: Using the Predetermined overhead rate in #1.

Given:
Actual allocation base usage: 8,000 direct labor hours
Predetermined overhead rate (POR) calculated previously: $_____ labor hour
Required: How do you allocate overhead costs using the predetermined overhead rate?

3. Under or Overapplied Overhead:

Given:
Actual manufacturing overhead costs incurred during a period: $180,000
Overhead allocated to production using the predetermined overhead rate: $160,000
Required: Compute underapplied or overapplied overhead.

4. Calculation of Total Manufacturing Costs:

Given:
Direct materials cost: $50,000
Direct labor cost: $80,000
Actual Manufacturing Overhead: $240,000
Overhead cost allocated using normal costing: $160,000
Required: Compute the total product cost using normal costing.

5. Predetermined overhead rate:

Given:
Estimated total manufacturing overhead costs for the year: $500,000
Estimated total allocation base for the year: 25,000 direct labor hours
Required: Compute the predetermined overhead rate (POR)