1. Both direct materials and indirect materials a. come from raw materials inventory. b. are applied using manufacturing overhead. c. come from merchandise inventory. d. are sold directly to customers by a manufacturing company. 2. Which one of the following represents a period cost? a. The VP of Sales' salary and benefits b. Overhead allocated to the manufturing operations c. Labor costs associated with quality control d. Fringe benefits associated with factory workers 3. A process with no beginning work in process, completed and transferred out 95,000 units during a period and had 50,000 units in the ending work in process inventory that were 30% complete for conversion. The equivalent units of production for the period were for materials were : a. 95,000 equivalent units. b. 145,000 equivalent units. c. 110,000 equivalent units. d. 47,500 equivalent units. 4. A process with no beginning work in process, completed and transferred out 95,000 units during a period and had 50,000 units in the ending work in process inventory that were 30% complete for conversion. The equivalent units of production for the period for conversion were: a. 95,000 equivalent units. b. 145,000 equivalent units. c. 110,000 equivalent units. d. 47,500 equivalent units. 5. FreeWater Company provided the following information from its accounting records for 2014: How much is the overhead application rate if Freewater Company bases it on direct labor hours? a. $29.00 per hour b. $32.22 per hour c. \$27.94 per hour d. $25.15 per hour 6. If Actual production is 50,000 labor hours is the overhead in problem 5: OVER APPLIED or UNDER APPLIED ? (Please circle one) 1. Both direct materials and indirect materials a. come from raw materials inventory. b. are applied using manufacturing overhead. c. come from merchandise inventory. d. are sold directly to customers by a manufacturing company. 2. Which one of the following represents a period cost? a. The VP of Sales' salary and benefits b. Overhead allocated to the manufturing operations c. Labor costs associated with quality control d. Fringe benefits associated with factory workers 3. A process with no beginning work in process, completed and transferred out 95,000 units during a period and had 50,000 units in the ending work in process inventory that were 30% complete for conversion. The equivalent units of production for the period were for materials were : a. 95,000 equivalent units. b. 145,000 equivalent units. c. 110,000 equivalent units. d. 47,500 equivalent units. 4. A process with no beginning work in process, completed and transferred out 95,000 units during a period and had 50,000 units in the ending work in process inventory that were 30% complete for conversion. The equivalent units of production for the period for conversion were: a. 95,000 equivalent units. b. 145,000 equivalent units. c. 110,000 equivalent units. d. 47,500 equivalent units. 5. FreeWater Company provided the following information from its accounting records for 2014: How much is the overhead application rate if Freewater Company bases it on direct labor hours? a. $29.00 per hour b. $32.22 per hour c. \$27.94 per hour d. $25.15 per hour 6. If Actual production is 50,000 labor hours is the overhead in problem 5: OVER APPLIED or UNDER APPLIED ? (Please circle one)
