the existence of under or overapplied overhead

10. Property taxes on a manufacturing plant are an element of a A) B) C) D) Prosdact Cost Periad Cos No Yes No Yes Yes No No Yes 11. Boswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining, $3,000,000; and assembling. $1,500,000. Information on the two products is: Direct labor hours Machine hours Number of parts Overhead applied to Regular using activity-based costing is A) $1,800,000. B) $3,210,000. C) $2,700,000. D) $1,290,000. 10,000 10,000 90,000 15,000 30,000 160,000 12. The following information was taken from Southgate Industry's cash budget for the month of July: Beginning cash balance Cash receipts Cash disbursements If the company has a policy of maintaining a minimum end of the month cash balance of $400,000, the amount the company would have to borrow is A) $160,000. B) $80,000. C) $240,000. D) $96,000. $480,000 304,000 544,000 13. A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution margin of $16 and takes two machine hours to make and Product B has a unit contribution margin of $30 and takes three machine hours to make. If there are 5,000 machine hours available to manufacture a product, income will be A) $10,000 more if Product A is made. B) $10,000 less if Product B is made. C) $10,000 less if Product A is made. D) the same if either product is made Version 2 Page 3