1. McLaughin Corp. estimated manufacturing overhead costs to be $1,000,000. Throughout the period McLaughin Corp. allocated (applied) $970,000 of manufacturing overhead. Actual manufacturing overhead costs turned out to be $1,010,000. McLaughin Corp.s manufacturing overhead was

a. Underallocated by $30,000

b. Underallocated by $40,000

c. Overallocated by $10,000

d. Overallocated by $30,000

2. A company assigns overhead cost to completed jobs on the basis of 125% of direct labor cost. The job cost sheet for Job 313 shows that $10,000 in direct materials has been used on the job and that $12,000 in direct labor cost has been incurred. A total of 1,000 units were produced in Job 313. What is the cost per unit of product of job 313?

a. $31.60

b. $37.00

c. $22.00

d. $34.50

3. Which of the following companies is least likely to use a job-order costing system for the determination of costs?

a. Brendas Catering caterer of wedding receptions and corporate training functions.

b. Home City Ice manufacturers of bags of ice for consumer use (bags of ice for parties, etc.).

c. Smith and Hackett law firm specializing in real estate and property law cases.

d. Pulte Homes builder of custom manufactured homes.

4. A good description of cost of goods manufactured is the recorded cost of the:

a. Units started during the period.

b. Units started and finished during the period.

c. Units sold during the period.

d. Units finished during the period.