Direct labor incurred (5,000 hours) Actual manufacturing overhead incurred $150,000 $166,000 5. Acme Company used a predetermined overhead rate of $35 per direct labe the year. Assume the only inventory balance is an ending Work in Process be $17,000. How much overhead was applied during the year? a. $110,000 $150,000 $166,000 $175,000 6. Manufacturing overhead was estimated to be $200,000 for the ye 20,000 direct labor hours. Actual manufacturing overhead was $21 actual labor hours were 21,000. To dispose of the balance in the M Overhead account, which of the following would be correct? (As Cost of Goods Sold would be credited for $15,000 Cost of Goods Sold would be credited for $5,000 Cost of Goods Sold would be debited for $5,000 Cost of Goods Sold would be debited for $15,000 a. b. d. 7. a. b. PA C. d. a. The allocation of indirect costs in an activity-based costing sys may require other costs to be allocated to activities before activities can be allocated to the products. is simplified because more costs are identified as direct c requires the use of heterogeneous cost pools. is simplified because a limited number of activities are 8. Which of the following statements does not describe resp It measures the plans and actions of each responsibil It budgets to emphasize that for which each respons It calculates variances between budgeted and actual responsibility center. b. C. d. 9. It identifies managers at fault for operating proble responsibility center. Controllability is always clear cut as to who has responsibility for responsibility. controlle