Fal 2017 25. If Clemente accepts the offer, it could use the production capacity to produce another product that would generate additional income of $3,600. The increase (decrease) in net income from accepting the offer would be A) $7,350. B) S(150). C) $150. D) $(3,600). 26. Manufacturing costs that cannot be classified as either direct materials or direct labor are known as B) period costs. C) manufacturing overhead D) selling and administrative expenses. 27. In Moyer Company, the Cuting Department had beginning work in process of 6,000 units, transferred out 24,000 units, and had an ending work in process of 3,000 units. How many units were started by Moyer during the month? A) 21,000. B) 24,000. C) 27,000. D) 18,000. 28. Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. Orders Setups Machise hours Parts Inspections 120,000 500 ondes 297,000 1,500,000 200,0001,000,000 parts Ordering and Receiving Machine Setup 450 setups 125,000 MH Machining Assembly Iaspection 500,000 500ispectios If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is A) S15.00. B) $12.00. C) $9.60 D) $34.17. Scrambled version 8 Page 6