Thomlin Company forecasts that total overhead for the current year will be $11,565,000 with 199,000 total machine hours. Year to date, the actual overhead is $7,685,000 and the actual machine hours are 86,000 hours. The predetermined overhead rate based on machine hours is

Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.

a.$58 per machine hour

A company using the periodic inventory system has the following account balances: Inventory at the beginning of the year, $3,626; Freight-In, $602; Purchases, $14,225; Purchases Returns and Allowances, $3,200; Purchases Discounts, $321. The cost of merchandise purchased is equal to

a.$14,225

b.$14,722

c.$21,974

d.$11,306

b.$134 per machine hour

c.$39 per machine hour

d.$89 per machine hour