3) Which of the following approaches to preparing an income statement includes a calculation of the gross margin? Traditional contribution Approach Approach Yes Yes No DNO Yes No Yes A) Choice A B) Choice B C) Choice C D) Choice D Answer: 4) Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below: Estimated machine-hours Estimated variable manufacturing overhead N o i per machine-ho Estimated total fixed manufacturing overheadNIOS8.040 The predetermined overhead rate for the recently completed year was closest to: A) S29.39 per machine-hour B) $32.40 per machine-hour C) $32.81 per machine-hour D) $3.01 per machine-hour Answer: 5) Purves Corporation is using a predetermined overhead rate that was based on estimated total manufacturing overhead of $121,000 and 10,000 direct labor-hours for the period. The company incurred actual total manufacturing overhead of S113,000 and 10,900 total direct labor-hours during the period. The predetermined overhead rate is closest to: A) $10.37 B) $12.10 C) $11.10 D) $11.30 Answer: 6) Session Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data: Total direct labore Total fixed manufacturing overhead cost Variable manufacturing overhead per direct labor-hour 170,000 $11,000 2 .10 Recently, Job K913 was completed with the following characteristics: Total direct labor-hours 150 Direct materials 705 Direct labor cost $4.650 The total job cost for Job K913 is closest to: A) $6,060 B) $2,115 C) $6,765 D) $5,355 Answer: 7) In a job-order costing system, which of the following events would trigger recording data on a job cost sheet? A) the purchase of direct materials B) the payment of fire insurance on the factory building C) the payment for product advertising D) none of the choices Answer: 8) During March, Zea Inc. transferred $50,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $56,000. The journal entries to record these transactions would include a: A) credit to Cost of Goods Sold of $56,000. B) debit to Finished Goods of $56,000. C) credit to Work in Process of $50,000. D) credit to Finished Goods of $50,000