Chapter 3 Systems Design: Job-Order Costing

38. Braam Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 11,500 hours. At the end of the year, actual direct labor-hours for the year were 9,700 hours, the actual manufacturing overhead for the year was $143,350, and manufacturing overhead for the year was underapplied by $18,220. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:

A) $164,023

B) $125,130

C) $148,350

D) $138,350

39. Braaten Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 14,100 hours. At the end of the year, actual direct labor-hours for the year were 13,500 hours, the actual manufacturing overhead for the year was $291,100, and manufacturing overhead for the year was underapplied by $7,600. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:

A) $286,100

B) $296,100

C) $298,816

D) $283,500

40. Cribb Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 17,900 hours and the total estimated manufacturing overhead was $341,890. At the end of the year, actual direct labor-hours for the year were 16,700 hours and the actual manufacturing overhead for the year was $336,890. Overhead at the end of the year was:

A) $22,920 underapplied

B) $17,920 overapplied

C) $17,920 underapplied

D) $22,920 overapplied

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Chapter 3 Systems Design: Job-Order Costing

41. Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,800 hours and the total estimated manufacturing overhead was $497,040. At the end of the year, actual direct labor-hours for the year were 21,500 hours and the actual manufacturing overhead for the year was $492,040. Overhead at the end of the year was:

A) $6,840 overapplied

B) $6,840 underapplied

C) $1,840 underapplied

D) $1,840 overapplied

42. Crick Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 14,400 hours and the total estimated manufacturing overhead was $355,680. At the end of the year, actual direct labor-hours for the year were 15,200 hours and the actual manufacturing overhead for the year was $350,680. Overhead at the end of the year was:

A) $24,760 underapplied

B) $24,760 overapplied

C) $19,760 underapplied

D) $19,760 overapplied

43. Dagger Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $423,870. At the end of the year, actual direct labor-hours for the year were 19,400 hours, manufacturing overhead for the year was underapplied by $5,650, and the actual manufacturing overhead was $418,870. The predetermined overhead rate for the year must have been closest to:

A) $21.59

B) $20.76

C) $21.30

D) $21.85

82 Garrison, Managerial Accounting, 12th Edition

Chapter 3 Systems Design: Job-Order Costing

44. Daget Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $364,140. At the end of the year, actual direct labor-hours for the year were 24,000 hours, manufacturing overhead for the year was overapplied by $8,060, and the actual manufacturing overhead was $359,140. The predetermined overhead rate for the year must have been closest to:

A) $15.43

B) $15.30

C) $15.17

D) $14.96

45. Dafoe Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $221,100. At the end of the year, actual direct labor-hours for the year were 14,400 hours, manufacturing overhead for the year was overapplied by $21,500, and the actual manufacturing overhead was $216,100. The predetermined overhead rate for the year must have been closest to:

A) $15.01

B) $17.73

C) $15.35

D) $16.50