The following information applies to Questions 1 to 7.

The following transactions occurred in August at Barbara Cabinets, a custom cabinet firm:

1. Purchased $70,000 of materials on account.
2. Issued $3,000 of supplies from the materials inventory.
3. Purchased $50,000 of materials on account.
4. Paid for the materials purchased in transaction (1).
5. Issued $62,000 in direct materials to the production department.
6. Incurred direct labor costs of $115,000, which were credited to Wages Payable.
7. Paid $106,000 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.
8. Applied manufacturing overhead on the basis of 125 percent of $100,000 direct labor costs.
9. Recognized depreciation on manufacturing property, plant and equipment of $50,000.

Question 7 - What is the journal entry to record (7) above?

Group of answer choices

A. No journal entry is required.

B. Debit Cash $120,000 and credit Manufacturing Overhead Control $120,000.

C. Debit Work-in-Process-Direct Materials $120,000 and credit Manufacturing Overhead Control $120,000.

D. Debit Manufacturing Overhead Control $120,000 and credit Cash $120,000.

The following pertains to Questions 8 and 9.

Jaguar Furnishings, Inc. produces two models of cabinets for home theater components the Basic and the Dominator. Data for operations and costs for March follow:

	Basic	Dominator	Total
Unites produced	1,000	250	1,250
Machine Hours	4,500	2,500	7,000
Direct Labor Hours	2,500	1,500	4,000
Direct Material Costs	$10,000	$3,750	$13,750
Direct Labor Costs	64,500	35,500	$100,000
Manufacturing Overhead Costs			$180,000
Total Costs			$293,750

Question 8 - What would be the pre-determined overhead rate assuming that Jaguar Furnishings uses Direct Labor Hours to allocate overhead costs?

Group of answer choices

A. $25/DLH

B. $45/DLH

C. There is not enough information to answer this question.

D. $35/DLH

Question 9 - What would be the pre-determined overhead rate assuming that Jaguar Furnishings uses Direct Labor Costs to allocate overhead costs?

Group of answer choices

A. 175%

B. 180%

C. There is not enough information to answer this question.

D. 150%