Question 1 (2 points) For process costing, the T account for WIP will include the cost of Beginning Work- in-Process Inventory plus the costs incurred during the current period on the debit side and: O 1) Costs transferred to the next department on the credit side. O 2) Costs in Ending Work-in-Process Inventory in the department on the credit side. O 3) The over-applied overhead on the credit side. 4) Costs transferred to the next department as the ending balance. Question 2 (2 points) Muller Co. uses a weighted-average process-costing system. Direct materials are added at two different points in the production of shirts, 40% is added when the units are 20% completed, and the remaining 60% of direct materials is added when the units are 80% completed. At the end of the quarter, there are 22,000 shirts in process, all of which are 50% completed. With respect to direct materials, the ending shirts in process represent how many equivalent units? O 1) 22,000 units. 2) 4,400 units. O 3) 11,000 units. O 4) 8,800 units. Question 3 (2 points) In order to analyze sales as a function of advertising costs, Rupper Company developed a simple regression model. The model was based on 60 monthly observations of sales and advertising and had a r squared of .90. The model was: Sales = 2.5 A + $10,000 where A is advertising cost If Rupper's advertising cost for next month is projected to be $5,000 they should expect sales to be closest to: O 1) $10,000 2) $22,500 3) $30,000 O 4) $12,500 Question 5 (2 points) XYZ Manufacturing uses a standard cost system with overhead applied based on direct-labor hours. The manufacturing budget for the production of 5,000 units for the month of June included 10,000 hours of direct labor at $20 per hour, or $200,000. During June, 4,500 units were produced, using 9,600 direct-labor hours, incurring $43,400 of variable overhead, and showing a variable overhead efficiency variance of $3,600 unfavorable. The standard variable overhead rate per direct-labor hour was O 1) $5.85 2) $6.00 3) $6.20 O 4) $0