Chupter 4. Product costing provides useful cost information for the following except:

31. Abnormal spoilage:

A. Is considered part of good production.

B. Arises under efficient operating conditions.

C. Is controllable in the short run.

D. Is unacceptable spoilage that should not occur under efficient operating conditions.

E. Is part of inventory product cost.

32. For job costing in service industries, overhead costs are usually applied to jobs based on:

A. Factory overhead.

B. Indirect labor.

C. Indirect materials.

D. Direct labor-hours or dollars.

E. Direct materials.

33. Vadis Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For 2010, estimated direct labor hours were 114,000 and estimated factory overhead was $695,400. The following information was for September 2010. Job X was completed during September, while Job Y was started but not finished.

The total cost of Job X is:

A. $153,628.

B. $128,220.

C. $151,900.

D. $129,672.

E. $140,855.

34. Vadis Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For 2010, estimated direct labor hours were 114,000 and estimated factory overhead was $695,400. The following information was for September 2010. Job X was completed during September, while Job Y was started but not finished.

The total factory overhead applied during September is:

A. $59,300.

B. $57,572.

C. $57,848.

D. $56,120.

E. $57,710.

35. Vadis Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For 2010, estimated direct labor hours were 114,000 and estimated factory overhead was $695,400. The following information was for September 2010. Job X was completed during September, while Job Y was started but not finished.

The underapplied or overapplied overhead for September is:

A. $1,590 underapplied.

B. $1,590 overapplied.

C. $920 overapplied.

D. $920 underapplied.

E. $1,452 underapplied.

36. Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For 2010, estimated direct labor hours are 133,000 and estimated factory overhead is $785,300. The following information is for September 2010. Job X was completed during September, while Job Y was started but not finished. Round calculations to two significant digits.

The total factory overhead applied during September is:

A. $79,300.

B. $57,572.

C. $73,750.

D. $68,120.

E. $51,710.

37. Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For 2010, estimated direct labor hours are 133,000 and estimated factory overhead is $785,300. The following information is for September 2010. Job X was completed during September, while Job Y was started but not finished. Round calculations to two significant digits.

The underapplied or overapplied overhead for September is:

A. $2,350 underapplied.

B. $2,350 overapplied.

C. $950 overapplied.

D. $950 underapplied.

E. $1,452 underapplied.

38. Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For 2010, estimated direct labor hours are 133,000 and estimated factory overhead is $785,300. The following information is for September 2010. Job X was completed during September, while Job Y was started but not finished. Round calculations

to two significant digits.

The total ending work-in-process for September is:

A. $68,000

B. $101,000

C. $133,450

D. $157,300

E. $53,400

39. Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For 2010, estimated direct labor hours are 133,000 and estimated factory overhead is $785,300. The following information is for September 2010. Job X was completed during September, while Job Y was started but not finished. Round calculations to two significant digits.

Cost of goods manufactured for September is:

A. $105,600

B. $157,300

C. $169,400

D. $145,500

E. $210,700

40. ABC Company listed the following data for 2010:

Assuming ABC Company applied overhead based on direct labor hours, the company's predetermined overhead rate for 2010 is:

A. $43.50 per direct labor hour.

B. $14.38 per direct labor hour.

C. $44.24 per direct labor hour.

D. $14.50 per direct labor hour.

E. $14.41 per direct labor hour.