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Problem 1:

Job 007 requires $10,000 of direct materials, $4,000 of direct labor, 400 tons of material, 200 machine hours, two setups, ten inspection hours, and one design change. The manufacturing overhead cost pools and overhead rates in each pool follow:

Cost Pool Overhead Rate
Material handling $20/ton of material
Machine usage $40/machine hour
Machine setups $1,000/set-up
Design changes $2,000/design change
Inspection $50/inspection hour
Determine the cost of Job 007.

Problem 2:
Roberts Manufacturing had a remaining debit balance of $20,000 of in its under and over-applied factory overhead account at year-end. It also had year end balances in the following accounts:
Work in Process……………………………………………………. $20,000 Finished Goods……………………………………………………… 30,000 Cost of Goods Sold………………………………………………… 50,000Total……………………………………………………………………… $100,000

50,000

$100,000
Prepare the closing entry for the $20,000 of under-applied overhead, assuming that the balance is not considered to be material. Prepare the closing entry for the $20,000 of under-applied overhead, assuming that the balance is considered to be material.
Prepare the closing entry for the $20,000 of under-applied overhead, assuming that the balance is not considered to be material.
Prepare the closing entry for the $20,000 of under-applied overhead, assuming that the balance is considered to be material.

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