Boat Corporation uses a job order cost system and applies overbead based on a percensage of direct labon cost. Cost flows through the Work in Process Inventory account during March are given below: Work in Process 300.000 Direct Materials Direct Labor Overhead 70,000 100,000 260,000 Euding Balanoe 30,000 Only Job 8007 was selll proces at the ed of March and this job had been eharged wih $40, in i materials cost S2) Refer to the information above. The predetermined overhead application rate at Capri Boat is what percentage of direct labor costs? B) 580%. C)6296. D) 38%. A) 260%. 53) Marty's Metal Shop uses ajob order cost system. It applies overhead tojobs at a rate of 175% of direct labor costs. Job No. 2617 required $800 in direct labor costs. The job was initially budgeted to require $850 in direct labor costs. Overhead applied to Job No. 2617 during the period amounted to: A) $1,400. C) S1,275 B) $850. D) Some other amount 54) If actual overhcad costs are less than the amount of overhead applied to production, this indicates that manufacturing overhead is over-applied. A) True B) False 55) In cost-volume-profit analysis, income tax expense A) Is included among the monthly operating expenses as a variable cost. B) is treated as a semi-variable cost that is partially dependent upon sales volume. C) Is generally ignored D) Is considered a fixed cost of doing business. 56) The break-even point in a cost-volume-profit graph is always found A) At the sales volume resulting in the lowest average unit cost B) At the volume at which total revenue equals total fixed costs plas total variable coss C) At the volume at which total revenue equals total variable costs. D) At 50% of full capacity. A-9