Huxtable charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of machine hours. The following data pertain to the current year: Budgeted manufacturing overhead: $577,500 Actual manufacturing overhead: $ 532,600 Budgeted machine hours: 27,500 Actual machine hours: 23,020 Overhead applied to production totaled:

Multiple Choice

$ 451,420.

$ 483,420.

$ 649,420.

$ 699,420.

some other amount.

2)

Fletcher, Inc. disposes of under- or overapplied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the firm reported cost of goods sold of $640,000 in a year when manufacturing overhead was underapplied by $23,500. If sales revenue totaled $2,320,000, determine (1) Fletcher's adjusted cost of goods sold and (2) gross margin.

Adjusted Cost of Goods Sold	Gross Margin
A. $ 616,500	$ 1,680,000
B. $ 616,500	$ 1,703,500
C. $ 640,000	$ 1,680,000
D. $ 663,500	$ 1,656,500
E. $ 663,500	$ 1,680,000

Multiple Choice

Choice A

Choice B

Choice C

Choice D

Choice E