1/Turtle Company produces t-shirts that go through two operations, cutting and sewing, before they are complete. Expected costs and activities for the two departments are shown below. Given this information, the departmental overhead rate for the cutting department based on direct labor hours is $2.69 per direct labor hour (rounded to two decimals). True/False

2/

A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:

				Budgeted Activity
Activity Cost Pool	Budgeted Cost			Product A		Product B		Product C
Activity 1	$	70,000		6,000		9,000		20,000
Activity 2	$	45,000		7,000		15,000		8,000
Activity 3	$	82,000		2,500		1,000		1,625

Which of the following statements is true regarding this company's activity rates?

• The activity rate under the activity-based costing system for Activity 2 is $2.81.

• The activity rate under the activity-based costing system for Activity 2 is $2.00.

• The activity rate under the activity-based costing system for Activity 2 is $16.00.

• The activity rate under the activity-based costing system for Activity 2 is $19.50.

• The activity rate under the activity-based costing system for Activity 2 is $1.50.

3/ Conversion cost per equivalent unit is the combined costs of direct materials and factory overhead. True/ false

4/ Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year's expected activities are shown in the following table:

	Molding			Finishing
Direct labor hours		75,000	DLH		160,500	DLH
Machine hours		98,000	MH		81,500	MH

Tarnish Industries uses departmental overhead rates and is planning on a $1.80 per direct labor hour overhead rate for the finishing department. Compute the estimated manufacturing overhead cost for the finishing department given the information shown in the table.

5/

If the indirect labor cost in August for clerical and maintenance that help production in all departments was $123,000, the following journal entry would be recorded in a process costing system: True/ False

Factory Overhead	123,000
Factory Wages Payable			123,000