ABC has estimated their overhead for the period will be $500,000. They use machine hours as an allocation base for each job and they estimate they will use 40,000 machine hours this year. What is their predetermined overhead rate for the year?

Question 1 options:

	$12.50 per machine hour.
	cannot be determined.
	$2,000,000
	$0.08 per machine hour.

Question 2 (1 point)

Assume ABC has a predetermined overhead rate of $15 per machine hour. Job #103 has used 100 direct labor hours and 50 machine hours. It's direct material costs are $1,600 and the cost of direct labor is $20 per hour. What is the total labor cost of Job #103?

Question 2 options:

	$750
	$4,350
	$2,000
	$3,600

Question 3 (1 point)

Assume ABC has a predetermined overhead rate of $15 per machine hour. Job #103 has used 100 direct labor hours and 50 machine hours. It's direct material costs are $1,600 and the cost of direct labor is $20 per hour. What is the total cost of Job #103?

Question 3 options:

	$2,000
	$3,600
	$750
	$4,350

Question 4 (1 point)

ABC had estimated $500,000 in overhead costs. At the end of the year, its actual overhead was $486,000. Its predetermined overhead rate was $15 per machine hour and it used 32,000 machine hours. What is the amount of Applied Overhead for the year?

Question 4 options:

	$486,000
	$480,000
	$14,000
	$500,000

Question 5 (1 point)

ABC had estimated $500,000 in overhead costs. At the end of the year, its actual overhead was $486,000. Its predetermined overhead rate was $15 per machine hour and it used 32,000 machine hours. What is the amount of Over-/Under- Applied Overhead for the year?

Question 5 options:

	$6,000 Under applied
	$14,000 Under applied
	$20,000 Under applied
	$14,000 Over applied