5.Pilgrim Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost $1,200,000 Actual annual overhead cost $1,150,000 Estimated machine hours 300,000 Actual machine hours 280,000 Question 5 options: $1,120,000 applied and $30,000 underapplied. $1,120,000 applied and $30,000 overapplied. $1,150,000 applied and neither under- nor overapplied. $1,200,000 applied and $30,000 overapplied.

6.The following data has been collected for use in analyzing the behavior of maintenance costs of Sterling Corporation: Month Maintenance Costs Machine Hours January $121,000 20,000 February 125,000 23,000 March 128,000 24,000 April 159,000 34,000 May 168,000 36,000 June 178,000 38,000 July 181,000 40,000 Using the high-low method to separate the maintenance costs into their variable and fixed cost components, these components are: Question 6 options: $4 per hour plus $41,000. $5 per hour plus $30,000. $3 per hour plus $61,000. $5 per hour plus $20,000.

7.Given the following data for Carlson Company, compute (A) total manufacturing costs and (B) costs of goods manufactured: Direct materials used $120,000 Beginning work in process $20,000 Direct labor 50,000 Ending work in process 10,000 Manufacturing overhead 150,000 Beginning finished goods 25,000 Operating expenses 175,000 Ending finished goods 15,000 Question 7 options: (A) (B) $310,000 $330,000 (A) (B) $320,000 $310,000 (A) (B) $320,000 $330,000 (A) (B) $330,000 $340,000

8.The production cost report shows both quantities and costs. Costs are reported in three sections: (1) costs accounted for, (2) unit costs, and (3) costs charged to department. The sections are listed in the following order: Question 8 options: (1), (3), (2). (1), (2), (3). (2), (1), (3). (2), (3), (1).

9.The starting point of a master budget is the preparation of the: Question 9 options: cash budget. production budget. budgeted balance sheet. sales budget.

10.The most useful measure for evaluating the performance of the manager of an investment center is: Question 10 options: return on investment. contribution margin. controllable margin. income from operations.