22 Discount Sales sells some used store fixtures. The acquisition cost of the fixtures is $12,500, the accumulated depreciation on these fixtures is $9,750 at the time of sale. The fixtures are sold for $4,500.The value of this transaction in the Investing section of the statement of cash flows is: a. $12,500 b. $2,750 c. $4,500 d. $1,750 70 The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $15,500,000 and the actual machine hours are 220,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate? a. $75 per machine hour b. $68 per machine hour c. $78 per machine hour d. $71 per machine hour 71 The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $15,500,000 and the actual machine hours are 220,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date) the overhead is over/under applied by? a. $500,000 under b. $1,000,000 under c. $500,000 over d. $1,000,000 over 72 At the end of the year, overhead applied was $35,000,000. Actual overhead was $34,200,000. Closing over/under applied overhead into cost of goods sold would cause net income to increase/decrease by? a. Not effect net income. b. Decrease net income by $200,000 c. Increase by $800,000 d. Decrease by $800,000 86 Poobah Manufacturers Inc. has estimated total factory overhead costs of $95,000 and 10,000 direct labor hours for the current fiscal year. If job number 117 incurred 1,600 direct labor hours, the work in process account will be debited and factory overhead will be credited for: a. $95,000 b. $0; WIP is credited c. $1,600 d. $15,200