1. Estimated overhead and direct labor costs for the year were $117,500 and $125,500, respectively. During the year, actual overhead was $107,900 and actual direct labor cost was $115,800. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include (Round predetermined overhead rate to nearest whole percentage.):

A. A credit to Factory Overhead for $952.

B. A debit to Cost of Goods Sold for $952.

C. A credit to Cost of Goods Sold for $952.

D. A debit to Goods in Process Inventory for $952.

E. A credit to Finished Goods Inventory for $952.

2. If one unit of Product X used $2.30 of direct materials and $3.10 of direct labor, sold for $11.00, and was assigned overhead at the rate of 28% of direct labor costs, how much gross profit was realized from this sale?

A. $4.73.

B. $.87.

C. $11.00.

D. $5.40.

E. $2.30.