The following information is for questions 1 to 3.

Budget Actual Beginning Ending

Direct Labour Costs $125,000 $120,000 Work in Progress $ 60,000 $ 40,000

Direct Labour Hours 25,000 26,500 Finished Goods $ 14,000 $ 24,000

Machine Hours 9,000 9,000 Materials $ 10,000 $ 20,000

Overhead Costs $500,000 $490,000

Overhead is allocated on Direct Labour costs. The manufacturer uses normal costing.

Materials Purchased during the year were $100,000. All materials are Direct Materials.

Overhead variances are allocated to COGS.

1. The overhead rate used in production is closest to A 24% of Direct Labour Costs B 392% of Direct Labour Costs C 400% of Direct Labour Costs D 408% of Direct Labour Costs E 417% of Direct Labour Costs

1. Cost of Goods Sold (before any allocation of under/over applied overhead) is closest to: A $700,000 B $710,000 C $720,000 D $730,000 E $740,000

1. What is under/over applied Manufacturing Overhead A 10,000 over applied B 10,000 under applied C 20,000 over applied E 20,000 under applied