1. If direct labor used was $25,000 and overhead used was $90,000 and direct materials used was $85,000 then how much was prime cost?

Group of answer choices

$110,000

$115,000

$175,000

$200,000

$85,000

2. R Company uses a predetermined overhead rate of $8 per direct labor hour to apply overhead. During the year, 40,000 direct labor hours were worked. Actual overhead costs for the year were $340,000. The overhead variance is:

Group of answer choices

$34,000 overapplied

$32,000 overapplied

$32,000 underapplied

$20,000 underapplied