1. Rist Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation estimated that it would incur $255,000 in manufacturing overhead during the year and that it would work 100,000 machine-hours. The Corporation actually worked 105,000 machine-hours and incurred $270,000 in manufacturing overhead costs. By how much was manufacturing overhead underapplied or overapplied for the year?

2. Sutter Corporation uses a job-order costing system with a single plant-wide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 10,000 Total fixed manufacturing overhead cost $ 35,000 Variable manufacturing overhead per machine-hour $ 2.20 Recently, Job T369 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 40 Direct materials $ 750 Direct labor cost $ 1,560 If the company marks up its unit product costs by 20% then the selling price for a unit in Job T369 is closest to:

3. Ravelo Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Estimated Overhead Cost Expected Activity Assembly $ 514,520 52,000 machine-hours Processing orders $ 62,263 1,900 orders Inspection $ 85,589 1,910 inspection-hours Data concerning the company's product L19B appear below: Annual unit production and sales 590 Annual machine-hours 1,150 Annual number of orders 230 Annual inspection hours 180 Direct materials cost $ 53.74 per unit Direct labor cost $ 26.45 per unit According to the activity-based costing system, the unit product cost of product L19B is closest to:

4. Otsego, Inc., is a merchandiser that provided the following information: Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.

5. Hough Company manufactures and sells a single product. A partially completed schedule of the companys total and per unit costs over a relevant range of 80,000 to 120,000 units produced and sold each year is given below: Units Produced and Sold 80,000 100,000 120,000 Total Costs: Variable costs $ 240,000 Fixed costs $ 320,000 Total costs $ 560,000 Cost per unit: Variable cost Fixed cost Total cost per unit a. Complete the schedule of the companys total and unit costs. b. Assume that the company produces and sells 110,000 units during the year at the selling price of $6.50 per unit. Prepare a contribution format income statement for the year.