QUESTION 1

1. Only one of the following costs is considered manufacturing overhead (MOH) for a construction company that builds custom homes. Which one is MOH?

   		Lumber
   		Screws for final furniture assembly
   		Drywall
   		Custom light fixtures

2. QUESTION 3

3. Which of the following would be a benefit of the control function of managers?

   		Control helps managers establish income and expense goals.
   		Control communicates the goals of the organization to employees.
   		Control allows managers to evaluate progress toward corporate goals.
   		Control helps managers make product pricing decisions.

4. QUESTION 8

5. Pyramid Company applies overhead at a rate of $2.55 per direct labor hour. Using the data that follows for job 128, determine the cost of overhead applied to job 128.

   Direct materials	$6,000
   Direct labor cost	$4,000
   Direct labor hours	300
   Machine time (hours)	700

   		$11,785
   		$765
   		$1,785
   		$10,765