5. While computing its predetermined overhead rate, Alford Company forgot to include plant depreciation. This error will result in (assume all other factors such as actual and budgeted activity levels remain consistent): A) the ending balance of Finished Goods Inventory to be overstated B) the charges from the Manufacturing Overhead account to the Work-in-Process account to be understated C) the Cost of Goods Manufactured to be overstated. D) the Net Operating Income to be understated 10. Holiday Spa has the following budgeted costs at its anticipated production level (expressed in hours): variable overhead, $280,000; fixed overhead, $480,000. If Holiday Spa now revises its anticipated production slightly downward, it would expect: A) total fixed overhead of $480,000 and a lower hourly rate for variable overhead. B) total fixed overhead of $480,000 and the same hourly rate for variable overhead. C) total fixed overhead of $480,000 and a higher hourly rate for variable overhead. D) total variable overhead of less than $280,000 and a lower hourly rate for variable overhead E) total variable overhead of less than $280,000 and a higher hourly rate for variable overhead. 13. The cost of electricity to run the machines for a manufacturing plant is a A) B) C) D) Conversion cost Yes Yes No No Period cost No es Yes No 4. The Samson Manufacturing Company has a Work-in- Process inventory account balance of S$6,000 at the end of an accounting period. The job cost sheets of the only two uncompleted jobs show charges of S1,000 and $600 for materials, and charges of $800 and $1,200 for direct labor respectively. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of A) 83% B) 120%. C) 40%. D) 300%. 15. At a production and sales volume of 40,000 units, Lonnie Company's total fixed costs are $40,000 and total variable costs are S60,000. The relevant range is 30,000 to 50,000 units expected total cost per unit would be IfLonnie were to produce and sell 50,000 units, the A) $2.20 B) S2.30 C) $2.50 D) $2.00