7 . In a process cost system , the application of factory overhead usually would be recorded as an increase in
8 . Jonathan Mfg . adopted a job-costing system . For the current year , budgeted cost driver activity levels for direct labor hours and direct labor costs were 20,000 and $ 100,000 , respectively . In addition , budgeted variable and fixed factory overheads were $ 50,000 and $ 25,000 , respectively . The actual costs and hours for the year were as follows : Direct labor hours 21,000 , Direct labor costs $ 110,000 , Machine hours 35,000 . For a particular job , 1,500 direct labor hours were used . Using direct labor hours as the cost driver , what amount of overhead should be applied to this job ?
9 . Indirect labor is a
10 . Hoyt Co . manufactured the following units : Saleable 5,000 , Unsalable ( normal spoilage ) 200 , Unsalable ( abnormal spoilage ) 300 , the manufacturing cost totaled $ 99,000 . What amount should Hoyt debit to finished goods ?
11 . In the past , four direct labor hours were required to produce each unit of product Y . Material costs were $ 200 per unit , the direct labor rate was $ 20 per hour , and factory overhead was three times the direct labor cost . In budgeting for next year , management is planning to outsource some manufacturing activities and to further automate others . Management estimates that these plans will reduce labor hours by 25 %, increase the factory overhead rate to 3.6 times the direct labor costs , and increase material costs by $ 30 per unit . Management plans to manufacture 10,000 units . What amount should management budget for the cost of goods manufactured ?
12 . During the month of March 2005 , Nale Co . used $ 300,000 of direct materials . On March 31 , 2005 , Nale ' s direct materials inventory was $ 50,000 more than it was on March 1 , 2005 . Direct material purchases during the month of March 2005 amounted to