Baker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $112,350 and 3,500 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $114,550 and actual direct labor-hours were 3,400.

The applied manufacturing overhead for the year was closest to: (Round your intermediate calculations to 2 decimal places.)

$110,820

$106,164

$113,988

$109,140

The direct labor rate for Brent Corporation is $9.00 per hour, and manufacturing overhead is applied to products using a predetermined overhead rate of $6.00 per direct labor-hour. During May, the company purchased $60,000 in raw materials (all direct materials) and worked 3,200 direct labor-hours. The Raw Materials inventory (all direct materials) decreased by $3,000 between the beginning and end of May. The Work in Process inventory on May 1 consisted of one job which had been charged with $4,000 in direct materials and on which 300 hours of direct labor time had been worked. There was no Work in Process inventory on May 31. The balance in the Work in Process inventory account on May 1 was:

$0

$8,500

$4,500

$6,700

Arvay Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of October. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $64,300 and the total of the credits to the account was $59,800. Which of the following statements is true?

Manufacturing overhead applied to Work in Process for the month was $64,300.

Manufacturing overhead for the month was underapplied by $4,500.

Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $64,300.

Actual manufacturing overhead incurred during the month was $59,800.