Strong Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By 20x1 year-end, actual overhead totaled $525,000, and actual machine hours were 25,000. On the basis of this information, the 20x1 predetermined overhead rate was:

Select one:

a. $0.04 per machine hour

b. $0.05 per machine hour

c. $20 per machine hour

d. $21 per machine hour

e. $25 per machine hour

Question 17

Dixie Company, which applies overhead at the rate of 190% of direct material cost, began work on job no. 101 during June. The job was completed in July and sold during August, having accumulated direct material and labor charges of $27,000 and $15,000, respectively. On the basis of this information, the total overhead applied to job no. 101 amounted to:

Select one:

a. $0

b. $28,500

c. $51,300

d. $70,500

e. $79,800

Question 18

Huxtable charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of machine hours. The following data pertain to the current year: Budgeted manufacturing overhead: $480,000 Actual manufacturing overhead: $440,000 Budgeted machine hours: 20,000 Actual machine hours: 16,000 Overhead applied to production totaled:

Select one:

a. $352,000

b. $384,000

c. $550,000

d. $600,000

e. some other amount

Question 19

Simone uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company's accounting records for the year just ended discovered the following: Under-applied manufacturing overhead: $7,200 Actual manufacturing overhead: $392,000 Budgeted labor hours: 50,000 Simone's actual labor hours worked totaled:

Select one:

a. 48,100

b. 49,100

c. 49,900

d. 50,900

e. cannot be determined based on the information presented

Question 20

Armada Company applies manufacturing overhead by using a predetermined rate of 150% of direct labor cost. The data that follow pertain to job no. 831: Direct material cost-$72,000 Direct labor cost-$38,000 If Armada adds a 30% markup on total cost to generate a profit, which of the following choices depicts a portion of the accounting needed to record the credit sale of job no. 831?

Select one:

a. Choice A

b. Choice B

c. Choice C

d. Choice D

e. Choice E

21. Tiffany charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of labor hours. The following data pertain to the current year: Which of the following choices is the correct status of manufacturing overhead at year-end?

Select one:

a. Overapplied by $10,000

b. Underapplied by $10,000

c. Overapplied by $35,000

d. Underapplied by $35,000

e. Overapplied by $45,000

Question 22

The estimates used to calculate the predetermined overhead rate will virtually always:

Select one:

a. prove to be correct

b. result in a year-end balance of zero in the Manufacturing Overhead account

c. result in overapplied overhead that is closed to Cost of Goods Sold if it is immaterial in amount

d. result in underapplied overhead that is closed to Cost of Goods Sold if it is immaterial in amount

e. result in either underapplied or overapplied overhead that is closed to Cost of Goods Sold if it is immaterial in amount

Question 23

Under- or overapplied manufacturing overhead at year-end is most commonly:

Select one:

a. charged or credited to Work-in-Process Inventory

b. charged or credited to Cost of Goods Sold

c. charged or credited to a special loss account

d. prorated among Work-in-Process Inventory, Finished-Goods Inventory, and Cost of Goods Sold

e. ignored because there is no effect on the Cash account

Question 24

Parrish's Manufacturing had the following data for the period just ended: Required: Calculate Parrish's cost of goods sold.

Select one:

a. $518,000

b. $432,000

c. $528,000

d. $537,000

e. none of the above

Question 25

The accounting records of Reynolds Corporation revealed the following selected costs: Sales commissions, $65,000; plant supervision, $190,000; and administrative expenses, $185,000. Reynolds's period costs total:

Select one:

a. $250,000

b. $440,000

c. $375,000

d. $255,000

e. $185,000