6. Owl Water Bottles was impressed with your work on the previous question and has given you a new ( PCOS task. Its water cooler sells for $9 and uses $2 of direct labor, $3 of direct materials. Overhead is applied as 50% of direct labor dollars. How much gross profit do we make when we sell a cooler? a. $3.00 b. $4.00 C. $5.00 d. Can I get transferred to management so I can hire someone to do this? 7. 92 You were denied your transfer to management. Owl Water Bottles thinks you are not being challenged enough so you are now responsible for analyzing the year end statement. Overhead was debited 10,000 and credited 9,990. What do you do with the $10 difference? a. Close it to miscellaneous expenses b. Close it to COGS C. Round up the credit because it isn't material d. Put $10 in the register and call it a day Abban LOOM Vuoto Chapter 17 1. Owl Snacks expects the following next year: direct materials 30,000; indirect materials 20,000; Snack wrappers salaries 15,000; supervisor salaries 20,000; factory electricity 10,000. If 5,000 machine hours are planned, what is the plantwide overhead rate? a. 16/hour b. 18/hour c. 21/hour d. 10/hour 2000 2. Owl Water Bottles has added a new department for flavored water. Can you calculate the plantwide overhead rate using machine hours as the base? Assume the following: Regular Flavored LUB GOOg Water Water Direct labor hours 30,000 20,000 og suges Machine hours 15,000 DO 10,000 SES MUSIC gits pot Overhead costs 100,000 150,000 on account Log on GP GSM a. Yes, 5/hour b. Yes, 10/hour Nuostabi 2000 c. I'd like to ask the audience 22130 000 d. I'd like to phone a friend