1)

The following are all product costs except

a.factory overhead

b.direct materials

c.sales and administrative expenses

d.direct labor

2)

For which of the following businesses would a process cost system be appropriate?

a.dressmaker

b.custom furniture manufacturer

c.shampoo manufacturer

d.boat repair service

3)

Which of the following is not included in conversion costs?

a.indirect labor

b.direct labor

c.direct materials

d.factory overhead

4)

Thomlin Company forecasts that total overhead for the current year will be $11,238,000 with 192,000 total machine hours. Year to date, the actual overhead is $7,908,000 and the actual machine hours are 86,000 hours. The predetermined overhead rate based on machine hours is

Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.

a.$41 per machine hour

b.$92 per machine hour

c.$131 per machine hour

d.$59 per machine hour