C253 Advanced Managerial Accounting PREASSESSMENT EXAM SOLUTIONS 2024/QUESTIONS WITH CORRECT DETAILED ANSWERS WITH CALCULATIONS/A+ GRADE

C253 Advanced Managerial Accounting PREASSESSMENT EXAM SOLUTIONS 2024/QUESTIONS WITH CORRECT DETAILED ANSWERS WITH CALCULATIONS/A+ GRADE #1 Which industry uses job-order costing? Legal Services # 2 A corporation applies overhead based upon machine hours to build custom sailboats. At the beginning of the year, they budgeted the following costs to make 50,000 units using 100,000 machine hours: Wages of employees who build the sailboats $50,000 Advertising $50,000 Aluminum mast installed in sailboat $350,000 Assembly shop supervisor wages $55,000 Depreciation of power tools $30,000 Sales commissions $140,000 Rent on the factory building $90,000 Presidents secretary salary $39,000 Electricity in the factory building $40,000 Executive office furniture depreciation $25,000 Depreciation on gym equipment in factory $35,000 Wages of employees in factory cafeteria $50,000 During the year, the company produced 52,000 units using 106,383 machine hours. Actual overhead for the year was $393,617. What is the predetermined overhead rate? $3.00 Step 1: determine the budgeted overhead cost items and total 55,000 + 30,000 + 90,000 + 40,000 + 35,000 + 50,000 = 300,000 Step 2: calculate the predetermined overhead rate using the budgeted machine hours $300,000 / 100,000 = $3.00