Underline the correct option (20) 11. If a company applies overhead to jobs gn_t_l1e _b_as_i_qfa predetermined overhead rate, a credit balance in the Manufacturing Overhead account at the end of any period means that: more overhead cost has been charged tojobs than has been incurred during the period. more overhead cost has been incurred during the period than has been charged to jobs. the amount of overhead cost charged to jobs is greater than the estimated cost for the period. the amount of overhead cost charged to jobs is less than the estimated overhead cost for the period. 12. The Work in Process inventory account of a manufacturing company shows a balance of $2,400 at the end of an accounting period. The job cost sheets of the two uncompleted jobs show charges of $400 and $200 for direct materials, and charges of $300 and $500 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of: 80%. 125%. 240%. 300%. 13. Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs? machine operator's wages. advertising costs. lumber. salesperson salaries. 14.The cost of fire insurance for a manufacturing plant is generally considered to be a: product cost. period cost. variable cost. fixed cost 15. The amount by which a company's sales can decline before losses are incurred is called the: contribution margin. degree of operating leverage. margin of safety. breakeven point. 16. Annual subscription fee paid to computer magazine. Fixed product cost. Variable product cost. 16. Annual subscription fee paid to computer magazine. Fixed product cost. Variable product cost. Fixed period cost. Variable period cost. 17. Gabel Inc. is a merchandising company. Last month the company's merchandise purchases totaled $63,000. The company's beginning merchandise inventory was $13,000 and its ending merchandise inventory was $15,000. What was the company's cost of goods sold for the month? $61,000. $63,000. $65,000. $91,000. 18. At a breakeven point of 400 units sold, variable expenses were $4,000 and fixed expenses were $2,000. What will the 401St unit sold contribute to profit? $0. $5. $10. $15. 19. The ratio of fixed expenses to the unit contribution margin is the: breakeven point in unit sales. profit margin. contribution margin ratio. margin of safety. 20. North Company sells a single product. The product has a selling price of $30 per unit and variable expenses of 70% of sales. If the company's fixed expenses total $60,000 per year, then it will have a breakeven in sales dollars of: $42,000. $60,000. $85,714. $200,000