1-3 (3, 7-8)

3. Heller Cannery Inc uses a predetermined overhead rate bassed on machine hours to apply manufacturing overhead to jobs. The company estimated that it would incur $510,000 in manufacturing overhead during the year and that it would work 100,000 machine hours. The company actually worked 105,000 machine hours and incurred $540,000 in manufacturing overhead costs. By how much was manufacturing overhead underapplied or overapplied for the year? A. $4500 overapplied B. $4500 underapplied C. $30,000 overapplied D. $30,000 underapplied

7. Reamer Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for the next year: Direct materials - $1000, Direct labor - $3000, Sales commissions - $4000, Salary of production supervisor - $2000, Indirect materials - $400, Advertising expense - $800, Rent on factory equipment - $1000. Reamer estimates that 500 direct labor hours and 1000 machine hours will be worked during the year. The predetermined overhead rate per hour will be: A. $6.80 B. $6.00 C. $3.00 D. $3.40

8. Washtenaw COrporation uses a job order costing system. The following data are for last year: Estimated direct labor hours-12,000, Estimated manufacturing overhead costs-$39,000, Actual direct labor hours-11,000, Actual manufacturing overhead costs-$37,000. Washtenaw applies overhead using a predetermined rate based on direct labor hours. What amount of overhead was applied tp jobs last year? A. $39,050 B. $42,600 C. $35,750 D. $36,960