q39

Cosi Company uses a job order costing system and allocates its overhead on thebasis of direct labor costs. Cosi expects to incur $800,000 of overhead during the next period, and expects to use 50,000 labor hours at a cost of $10.00 per hour. What is Cosi Company's overhead application rate?

q40

A company's sales in Year 1 were $250,000 and in Year 2 were $287,500. Using Year 1 as the base year, the percent change for Year 2 compared to the base year is:

q44

Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $112,500 and $125,000, respectively. During the year, actual overhead was $107,400 and actual direct labor cost was $120,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include:

q48

Which of the following statements is true regarding product and period costs?

Multiple Choice

• Office salaries expense and factory maintenance are both product costs.
• Delivery expense is a product cost and indirect materials is a period cost.
• Factory rent is a product cost and advertising expense is a period cost.
• Sales commissions and indirect labor are both period costs.
• Office rent is a product cost and supervisors' salaries expense is a period cost.