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7) A company currently has 30 full-time employees. Actual time for each employee was as follows. billable time for clients vacation time professional development Kronbillable

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7) A company currently has 30 full-time employees. Actual time for each employee was as follows. billable time for clients vacation time professional development Kronbillable time sick leave 2,000 hours 200 hours 175 hours O hours 125 hours Consumer demand for the company's services is at 100 percent of time available. Each employee receives a salary of $75,000 per year. What is the total actual indirect cost allocation rate if management believes that clients should be charged for the employees' benefits? A) $10.00 B) 56.67 C) $30.00 D) $6.00 E) $37.50 8) When using the proration approach the final balance in the Manufacturing Overhead Control account can be closed to which account(s) at year-end? A) Work-in-Process Control B) Income Summary C) Finished Goods Inventory D) Cost of Goods Sold E) Work-in-Process Control, Finished Goods Inventory or Cost of Goods Sold would normally be used. 9) Which method for dealing with under/over allocated overhead provides the most accurate individual job cost records? A) proration approach B) adjusted allocation-rate approach C) immediate write-off to cost of goods sold D) either proration or adjusted allocation-rate approach would give same result E) either the proration approach or the immediate write-off to cost of goods sold 10) ZamTech Moldings allocates manufacturing overhead to jobs based on machine hours. The company has the following estimated costs for the upcoming year: Direct materials used $25,000 Sales Commissions $8,000 Advertising expense 533,000 Direct labour costs $62,000Depreciation on factory equipment $9,000 Salary of factory supervisor $41,000 Heating and lighting costs for factory $21.000! The company estimates that 1,800 direct labour hours will be worked in the upcoming year, while 2,000 machine hours will be used during the year. The predetermined indirect allocation rate per machine hour is closest to C) $100 Activate Windows B) $36. D) $15 E) $40 A) $56

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