1. Last month a manufacturing company had the following operating results: Beginning finished goods inventory $86,000, Ending finished goods inventory $60,000; Sales $500,000; Gross profit $72,000. What was the cost of goods manufactured for the month?

a. 474,000.

b. 428,000.

c. 454,000.

d. 402,000.

2. Jones Company applies overhead based on direct labor hours. At the beginning of the year, Jones estimates overhead to be $480,000, machine hours to be 120,000, and direct labor hours to be 80,000. During January, Jones has 6,700 direct labor hours and 11,000 machine hours. If the actual overhead for January is $41,000, what is the overhead variance and is it overapplied or underapplied?

a. 3,000 overapplied.

b. 800 overapplied.

c. 3,000 underapplied.

d. 800 underapplied.

3. Jojo Company designs and builds fire trucks. During May it had applied overhead of $105,000. Overhead is applied at the rate of 70% of direct labor cost. Direct labor wages average $10 per hour. How many direct labor hours did Jojo company have for the month of May?

a.15,000.

b.1,500,000.

c.10,500.

d.4,500.

4. Harren Inc. is a merchandising company. Last month the company's cost of goods sold was $92,000. The company's beginning merchandise inventory was $14,000 and its ending merchandise inventory was $16,000. What was the total amount of the company's merchandise purchases for the month?

a.$94,000.

b.$122,000.

c.$92,000.

d. $90,000.