QUESTION 1

Which of the following is an example of a predetermined overhead rate?

1. A.Estimated manufacturing overhead divided by estimated units produced
2. B.Actual units produced divided by estimated manufacturing overhead
3. C.Estimated direct labor dollars divided by estimated manufacturing overhead
4. D.Estimated manufacturing overhead divided by actual direct labor hours

QUESTION 2

The reason for lumping direct labor and manufacturing overhead costs together and calling them "conversion costs" is that

1. A.the costs for direct labor and overhead are not accounted for separately.
2. B.the equivalent unit amount for materials will be the same as that for direct labor and manufacturing overhead costs.
3. C.they both are direct costs of production.
4. D.both types of costs usually are incurred uniformly throughout the production process.

Question 4

The balance in the Work in Process Inventory Control account on March 1 was $18,200, and the balance on March 31 was $15,120. Costs incurred during the month were as follows: direct materials, $56,250; direct labor, $24,300; and overhead, $41,600. What amount was transferred to the Finished Goods Inventory Control account for March?

A.$88,830

B.$122,150

C.$125,230

D.$119,070

QUESTION 5

The beginning finished goods inventory for Campo Ltd. was $288,300. Goods completed during the year were costed at $1,567,400. The ending finished goods inventory was dangerously low, having been reduced to $256,900. The cost of goods sold for the year for Campo was

1. A.$1,855,700.
2. B.$1,598,800.
3. C.$2,112,600.
4. D.$1,310,500.