Question
The Work in Process Inventory account of a manufacturing company has a $3,750 debit balance. The company applies overhead using direct labor cost. The cost
The Work in Process Inventory account of a manufacturing company has a $3,750 debit balance. The company applies overhead using direct labor cost. The cost sheet of the only job still in process shows direct material cost of $1,730 and direct labor cost of $790. Therefore, the amount of applied overhead is:
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$790.
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$1,230.
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$2,520.
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$2,020.
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$2,960.
2.
Using the following accounts and a predetermined overhead rate of 150% of direct labor cost, compute the amount of applied overhead.
Work in Process Inventory | |||
Beginning WIP | 34,900 | ||
Direct materials | 55,100 | ||
Direct labor | ? | ||
Factory overhead | ? | ||
To finished goods | 213,300 | ||
Ending WIP | 24,900 |
Finished Goods Inventory | |||
Beginning FG | 4,900 | ||
Cost of Goods Mfg'd | 213,300 | ||
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$148,200.
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$88,920.
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$90,000.
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$82,650.
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$59,280.
3.
If one unit of Product Z2 used $3.10 of direct materials and $3.60 of direct labor, sold for $10.00, and was assigned overhead at the rate of 36% of direct labor costs, how much gross profit was realized from this sale? (Round your intermediate calculations and final answer to two decimal places.)
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$3.30.
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$2.00.
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$1.30.
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$10.00.
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$6.70.
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