1- Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,940 hours and the total estimated manufacturing overhead was $530,948. At the end of the year, actual direct labor-hours for the year were 21,850 hours and the actual manufacturing overhead for the year was $530,948. Overhead at the end of the year was: (Do not round intermediate calculations.)

Multiple Choice

• $2,228 overapplied
• $2,228 underapplied
• $2,178 underapplied
• $2,178 overapplied

2-

a- Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$ 140
Units in beginning inventory	0
Units produced	9,300
Units sold	8,900
Units in ending inventory	400

Variable costs per unit:
Direct materials	$ 25
Direct labor	$ 67
Variable manufacturing overhead	$ 13
Variable selling and administrative expense	$ 17
Fixed costs:
Fixed manufacturing overhead	$ 139,500
Fixed selling and administrative expense	$ 9,500

b- What is the net operating income (loss) for the month under variable costing?

Multiple Choice

• $11,200
• $(30,800)
• $17,200
• $6,000

3-

a- Bolka Corporation, a merchandising company, reported the following results for October:

Sales	$ 416,000
Cost of goods sold (all variable)	$ 177,700
Total variable selling expense	$ 23,800
Total fixed selling expense	$ 21,600
Total variable administrative expense	$ 16,700
Total fixed administrative expense	$ 32,000

b- The gross margin for October is:

Multiple Choice

• $197,800
• $238,300
• $144,200
• $362,400