Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $472,000, and direct labor costs to be $2,360,000. Actual overhead costs for the year totaled $434,000, and actual direct labor costs totaled $1,980,000. At year-end, the balance in the Factory Overhead account is a:

• $396,000 Debit balance.

• $472,000 Credit balance.

• $38,000 Debit balance.

• $434,000 Debit balance.

• $38,000 Credit balance.

2.

Mesa Corp. allocates overhead to production on the basis of direct labor costs. Mesas total estimated overhead is $380,000 and estimated direct labor is $190,000. Determine the amount of overhead applied to a job which used $31,000 of direct labor.

• $31,000.

• $124,000.

• $93,000.

• $15,500.

• $62,000.

3.

The job order cost sheets used by Greene Company revealed the following:

Job. No.		Bal., May 1				May Production Costs
134		$	1,950			$	0
135			1,450				350
136			0				950

Job No. 135 was completed during May and Jobs No. 134 and 135 were shipped to customers in May. What was the company's cost of goods sold for May and the balance of Work in Process inventory on May 31?

• $1,450; $3,400.

• $1,950; $1,100.

• $3,400; $1,450.

• $4,700; $0.