Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor hours to be 50,000. During February, Morrow has 4,200 direct labor hours and 8,000 machine hours.

What is the predetermined overhead rate?

$12.40 per direct labor hour

$3.44 per machine hour

$147.62 per direct labor hour

$77.50 per machine hour

Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor hours to be 50,000. During February, Morrow has 4,200 direct labor hours and 8,000 machine hours.

What is the amount of overhead applied for February?

$78,200

$24,000

$42,000

$52,080

Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor hours to be 50,000. During February, Morrow has 4,200 direct labor hours and 8,000 machine hours.

If the actual overhead for February is $52,480, what is the overhead variance and is it overapplied or underapplied?

$400 overapplied

$200 overapplied

$1,000 underapplied

$400 underapplied

The predetermined overhead rate is calculated by

Estimated annual overhead/Estimated manufacturing cost

Estimated annual overhead/Estimated annual activity level

Estimated annual overhead/Actual annual activity level

Actual annual overhead/Estimated annual activity level

The predetermined overhead rate is usually calculated

At the end of the year

At the end of each month

At the beginning of each month

At the beginning of the year

The document that lists the total cost for a single job is a

Materials requisition form

Purchase order

Time ticket

Job-order cost sheet

The order that cost elements flow through accounts until they are recognized as an expense is

		Work-in-Process, Finished Goods, Cost of Goods Sold
		Work-in-Process, Cost of Goods Sold, Finished Goods
		Finished Goods, Cost of Goods Sold, Work-in-Process
		Finished Goods, Work-in-Process, Cost of Goods Sold