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Risser Woodworking Corporation produces fine cabinets. The company uses a job order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint. which is an automated jointer. Additional information is provided below for the most recent month: $ 19,988 380 hours Estimates at the beginning of the month: Estimated total fixed manufacturing overhead Capacity of the jointer Actual results: Sales Direct materials Direct labor Actual total fixed manufacturing overhead Selling and administrative expense Actual hours of jointer use $ 62,400 $ 16,900 $ 15,260 $ 19,988 $ 11,400 340 hours The gross margin that would be reported on the income statement prepared for internal management purposes would be closest to: Multiple Choice $62,400 ba $12,356 The management of Holdaway Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 73,300 machine-hours. Capacity is 82,300 machine-hours and the actual level of activity for the year is assumed to be 69.200 machine hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $5,700,921 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year If the company bases its predetermined overhead rate on capacity, then the predetermined overhead rate is closest to Multiple Choice $82.38 per machine hour $7778 per machine hour $69.27 por machine hour During March, Zeo Incorporated transferred $51,000 from Work In Process to Finished Goods and recorded a cost of Goods Sold of $57,000. The Journal entries to record these transactions would include: Multiple Choice credit to Cost of Goods Sold of $57000 debit to Finished Goods of $57,000 credit to Work in Process of $51,000 credit to Finished Goods of $51,000 Chavez Corporation reported the following data for the month of July Inventories: Raw materials Work in process Finished goods Beginning Ending $46,000 $39,500 $25,500 $36,000 $41,500 $56,500 Additional information: Raw materials purchases $75,500 Direct labor cost $100,500 Manufacturing overhead cost incurred $68,500 Indirect materials included in manufacturing overhead cost incurred $11,800 Manufacturing overhead cost applied to Work in Process $67,500 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for July is: Multiple Choice