Multiple Choice Questions 11. Emco Company uses direct labor com as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the company misclassified a portion of direct labor cost as indirect labor. The effect of this misclassification will be to A understate the predetermined overhead B. overstate the predetermined overhead C. have no effect on the predetermined overhead D. cannot be determined from the information given 12. Departmental overhead rates are generaly preferred to plant-wide overhead rates A the activities of the various departments in the plant are not homogeneous B. the activities of the various departments in the plantare homogeneous C. most of the overhead costs are fixed D. all departments in the plant are heavily automated 13. Which of the following entries would record correctly the monthly salaries earned by the top management of a manufacturing company? XOOX B) Sagen to A) Manufacturing Overhead Salaries and Wages Payable Salaries and Wages Payable C) Work in Process Salaries and Wages Payable D) Salaries and Wages Payable A Option B. Option c. Option D. Option 14. Which of the following entries would correctly record the application of overhead ? XXX A) Work in Process Acounts Payable B) Manufacturing Overhead Accounts Payable C) Manufacturing Overhead Work in Process D) Work in Process Manufacturing Overhead A Option