QUESTION 22

Dukes Corporation used a predetermined overhead rate this year of $2 per direct labor-hour, based on an estimate of 20,000 direct labor-hours to be worked during the year. Actual costs and activity during the year were:

Actual manufacturing overhead cost incurred	$	38,000
Actual direct labor-hours worked		18,500

The overapplied or underapplied manufacturing for the year was:

		$3,000 overapplied
		$1,000 overapplied
		$1,000 underapplied
		$3,000 underapplied

2.5 points

QUESTION 23

Product Y sells for $15 per unit, and has variable expenses of $9 per unit. Fixed expenses total $300,000 per year. How many units of Product Y must be sold each year to yield an annual profit of $90,000?

		15,000 units
		43,333 units
		50,000 units
		65,000 units