q24

Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $400,000, and direct labor costs to be $2,000,000. Actual overhead costs for the year totaled $380,000, and actual direct labor costs totaled $1,800,000. At year-end, the balance in the Factory Overhead account is a:

a. $380,000 Debit balance.

b. $400,000 Credit balance.

c. $20,000 Debit balance.

d. $360,000 Debit balance.

e. $20,000 Credit balance

q25

Using the information below, compute the Days' sales in raw materials inventory:

Raw Materials Used$121,600

Beginning Raw Materials Inventory18,000

Ending Raw Materials Inventory20,200

q28

Which of the following costs would not be classified as factory overhead?

Multiple Choice

• Property taxes on maintenance machinery.
• Rubber for the soles of shoes produced.
• Wages of the factory janitor.
• Small tools used in production.
• Insurance on factory building.

q29

A company's prime costs total $3,000,000 and its conversion costs total $7,000,000. If direct materials are $1,000,000 and factory overhead is $5,000,000, then direct labor is:

q31

Which of the following should not be included in direct materials costs?

Multiple Choice

• Delivery charges on shipments to customers.
• Materials handling costs.
• Incoming freight charges.
• Materials storage costs.
• Invoice costs of direct materials.