Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing to Jobs. Steele Corporation has provided the following estimated costs for next year 13) Steele Corporasicee Direct materials Direct labor Sales commissions S 20,000 60,000 S 80,000 Indiry f roduction supervisor Advertising expense 40.00 S 16,000 on factory equipment $ 20,000 Steele estimates that 10,000 direct labor-bours and 16,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be: 13) A) S10.25 B)$4.25 C)$9.00 D)$8.00 salary paid to the president of a company would be classified on the income statement as a(n): 14) B) selling expense. A) direct labor cost. C) manufacturin 15) In April, one of the processing departments at Terada Corporation had beginning work in process inventory of $21,000 and ending work in process inventory of $27,000. During the month, $244,000 of costs were added to production and the cost of units transferred out from the department was $238,000. In the department's cost reconciliation report for April, the total cost to be accounted for under the weighted-average method would be: 15) A) S530,000 B)S509,000 C)$265,000 D) $48,000 16) Which of the following statements about product costs is true? 16) A) Product costs appear on financial statements only when products are sold B) Product costs are deducted from revenue when the production process is completed C) Product costs associated with unsold finished goods and work in process appear on the balance sheet as assets D) Product costs are deducted from revenue as expenditures are made. 17) Parker Corporation has a job-order costing system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. At the beginning of the year, manufacturing overhead and direct labor-hours for the year were estimated at S50,000 and 20,000 hours, respectively. In June, Job #401 was completed. Materials costs on the job totaled $4,000 and labor costs totaled $1,500 at $5 per hour. At the end of he year it was determined that the company worked 24,000 direct labor-hours for the year and incurred $54,000 in actual manufacturing overhead costs. The manufacturing overhead for the year was: 17) A) $10,000 overapplied B) $6,000 overapplied C) $10,000 underappliedD) $4,000 underapplied