2) Finished goods inventory is $191,000. If overhead applied to these goods is $75,000, and the overhead rate is 120% of direct labor, how much direct materials cost was incurred in producing the inventory? (Round your intermediate calculations and final answer to nearest whole dollar.)

A) $90,000. B) $62,500. C) $53,500. D) $51,500. E) $26,000.

4) Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,990,000 (230,000 hours at $13/hour) and that factory overhead would be $1,530,000 for the current period. At the end of the period, the records show that there had been 210,000 hours of direct labor and $1,230,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead allocation rate? (Round your answer to two decimal places.)

A) $6.65 per direct labor hour. B) $7.29 per direct labor hour. C) $6.02 per direct labor hour. D) $5.35 per direct labor hour. E) $6.43 per direct labor hour.

7) Using the following accounts and an overhead rate of 150% of direct labor cost, compute the amount of applied overhead.

Goods in Process Inventory

Beg. Bal. 36,100 D.M. 57,100 D.L. ? O.H. ? F.G. 213,300 End.Bal. 26,100

Finished Goods Inventory Beg. Bal. 5,900 End. Bal. 213,300

A) $93,200. B) $87,720. C) $58,480. D) $85,650. E) $146,200.

8) The R&R Company's production costs for August are: direct labor, $14,000; indirect labor, $6,200; direct materials, $14,600; property taxes on production equipment, $820; heat, lights and power, $960; and insurance on plant and equipment, $160. R&R Company's factory overhead incurred for August is:

A) $8,140. B) $6,200. C) $36,740. D) $20,800. E) $1,940.