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1 Sharp Company's records show that overhead was overapplied by $10,000 last year. This overapplied overhead was closed out to the Cost of Goods Sold account at the end of the year. In trying to determine why overhead was overapplied by such a large amount, the company has discovered that $6,000 of depreciation on factory equipment was charged to administrative expense in error. Given the above information, which of the following statements is true? Multiple Choice O O O 0 Manufacturing overhead was actually nverapplied by $16,000 for the year. The company's net income is understated by $6,000 for the year. Under the circumstances described above, the error in recording depreciation would have no effect on net income for the year. The $6,000 in depreciation should have been charged to Work in Process rather than to administrative expense. 2 In a job-order costing system, when a job remains incomplete at the end of a period, how is the amount of overhead cost that has been applied to that job treated? Multiple Choice 10 points O It is deducted on the Income Statement as overapplied overhead. eBook Print O It is closed out to Cost of Goods Sold. O It is transferred to Finished Goods. O It is part of the ending balance of the Work in Process inventory account.3 Which of the following statements is true if a company applies overhead to jobs on the basis of a predetermined overhead rate and reports a credit balance in the Manufacturing Overhead account at the end of any period? 10 Multiple Choice points eBook O More overhead cost has been charged to jobs than has been incurred during the period. Print O More overhead cost has been incurred during the period than has been charged to jobs. O The amount of overhead cost charged to jobs is greater than the estimated cost for the period. O The amount of overhead cost charged to jobs is less than the estimated overhead cost for the period.The Work in Process inventory account of a manufacturing company shows a balance of $2,400 at the end of an accounting period. Thejob cost sheets of two uncompleted jobs show charges of $400 and $200 for direct materials and charges of $300 and $500 for direct labour. From this information, what predetermined overhead rate, as a percentage of direct labour costs. does the company appear to be using? Multiple Choice 0 30%. O 125%. O 240%. O 300%. Worrell Corporation has ajoborder costing system. The following debits (credits) appeared in the Work in Process account for the month of March: March 1, balance $12,00- March 31, direct materials 40,00- March 31, direct labour March 31, manufacturing overhead 27,00! applied March 31, to nished goods (100,000 Worrell applies overhead at a predetermined rate of 90% ofdirect labour cost. Job No. 232, the only job still in process at the end of March, has been charged with manufacturing overhead of $2,250. What was the amount of direct materials charged to Job No. 232? Multiple Choice 0 $2,250. $2.500. $9.000. O 0 $4,250. 0