1. Marty's Metal Shop uses a job order cost system. It applies overhead to jobs at a rate of 120% of direct labor costs. Job No. 2617 required $620 in direct labor costs. The job was initially budgeted to require $645 in direct labor costs. Overhead applied to Job No. 2617 during the period amounted to:

• $1,145.

• $745.

• $744.

• $645.

2. Riverview Company's budget for the coming year includes $5,600,000 for manufacturing overhead, 20,000 hours of direct labor, and 200,000 hours of machine time.

If Riverview applies overhead using a predetermined rate based on machine-hours, what amount of overhead will be assigned to a unit of output which requires 0.9 machine hours and 0.25 labor hours to complete?

• $70.00

• $280.00

• $28.00

• $25.20

3. Riverview Company's budget for the coming year includes $7,200,000 for manufacturing overhead, 50,000 hours of direct labor, and 250,000 hours of machine time.

If Riverview applies overhead using a predetermined rate based on labor-hours, what amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.50 labor hours to complete?

• $72.00

• $29.00

• $58.00

• $5.00