1.Adams Company uses a job-order costing system. Assume that Job #309 is the only one in process. The following information is available:

Budgeted direct labor hours	72,000	Budgeted machine hours	11,000
Budgeted overhead	$400,000	Direct material	$122,750
Direct labor cost	$80,000

Refer to Adams Company. What is the overhead application rate if Adams uses a predetermined overhead application rate based on direct labor hours?

Select one:

a. $0.20

b. $5.00

c. $5.56

d. $36.36

2.

Products at Newman Manufacturing are sent through two production departments: Fabricating and Finishing. Overhead is applied to products in the Fabricating Department based on 150 percent of direct labor cost and $18 per machine hour in Finishing. The following information is available about Job #297:

	Fabricating	Finishing
Direct material	$1,590	$580
Direct labor cost	?	48
Direct labor hours	22	6
Machine hours	5	15
Overhead applied	429	?

What is the total cost of Job #297?

Select one:

a. $3,005

b. $2,647

c. $3,203

d. $3,093