6/ The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,050 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $1,910 and direct labor cost of $730. Therefore, the amount of the applied overhead is:

Multiple Choice

$2,140.

$2,640.

$1,410.

$730.

$3,320.

7/ Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $410,400; materials of $406,000 and direct labor of $216,000. During the year Adams incurred $433,800 in materials costs, $429,400 in overhead costs and $220,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.

Multiple Choice

$11,400 overapplied.

$19,000 overapplied.

$11,400 underapplied.

$19,000 underapplied.

$4,400 underapplied.

8/ The B&T Company's production costs for May are: direct labor, $15,000; indirect labor, $6,700; direct materials, $15,200; property taxes on production facility, $820; factory heat, lights and power, $1,020; and insurance on plant and equipment, $220. B&T Company's factory overhead incurred for May is:

Multiple Choice

$6,700.

$2,060.

$21,900.

$8,760.

$38,960.

9/Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,600 of direct materials and used $4,100 of direct labor. The job was not finished by the end of the month, but needed an additional $3,100 of direct materials and additional direct labor of $6,600 to finish the job in October. The company applies overhead at the end of each month at a rate of 150% of the direct labor cost incurred. What is the total cost of the job when it is completed in October?

Multiple Choice

$16,400

$19,600

$32,450

$23,700

$29,400

10 Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $207,000 of raw materials on credit; issued materials to production of $204,000 of which $21,000 were indirect. Minstrel incurred a factory payroll of $159,000, of which $31,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The total manufacturing costs added during the period are:

Multiple Choice

$503,000.

$601,500.

$580,500.

$549,500.

$524,000.