Question 6

A manufacturing company applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $450,000 and direct labor hours would be 90,000. Actual overhead costs incurred were $459,000 and actual direct labor hours were 95,000.

The entry to apply overhead costs for all jobs during the year would include

a credit to factory overhead applied for $475,000 (NOT THE ANSWER)

a debit to factory overhead applied for $475,000

a credit to factory overhead control for $450,000

a credit to factory overhead applied for $450,000

Question 7

A manufacturing company applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $450,000 and direct labor hours would be 90,000. Actual overhead costs incurred were $459,000 and actual direct labor hours were 95,000.

What is the amount of overapplied or underapplied overhead at the end of the year?

$16,000 underapplied (NOT THE ANSWER)

$9,000 overapplied

$16,000 overapplied

$9,000 underapplied

Question 8

A manufacturing company applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $450,000 and direct labor hours would be 90,000. Actual overhead costs incurred were $459,000 and actual direct labor hours were 95,000.

When the amount of underapplied or overapplied overhead is small, it is usually written off to

Finished Foods Inventory

selling expense

Work in Process Inventory (NOT THE ANSWER)

Cost of Goods Sold

Question 17

Product K's expected selling price per unit is $36, the projected variable cost per unit is $20, and estimated fixed costs per month are $12,000.

If direct materials are 5,000; direct labor is 10,000; overhead is 20,000 and selling costs are 4,000, what are the conversion costs?

15,000 (NOT THE ANSWER)

30,000

39,000

34,000