1. A company uses direct material costs to apply overhead. Its costs for the period are direct materials $61,000, direct labor $45,000, and overhead applied $18,300. What is the predetermined overhead rate? A. 30%; B.74% C. 41% D.17%

2. At the end of the current production period, a companys overhead was underapplied by $2,775. This amount is not considered material. The company should: A. Debit the $2,775 to finished goods inventory. B. Credit the $2,775 to cost of goods sold. C. Debit the $2,775 to cost of goods sold D. Credit the $2,775 to finished goods inventory