Zulia Company manufactures premium beer. Zulia uses direct labor hours to allocate manufacturing overhead costs. At the end of December 2020, Zulia estimated that the manufacturing overhead costs would total $120,400 and the direct labor hours would total 28,000 in 2021.

Zulia had beginning and ending balances of inventories for July 2021 as follows:

	July 1, 2021	July 31, 2021
Direct materials	$3,900	$9,000
Work-in-process inventory	$2,100	$5,400
Finished goods inventory	$0	?

Following is a list of costs the company incurred during July 2021.

• Purchased raw materials for $51,000
• Incurred 2,200 manufacturing hours; 85% of which was direct labor at $16 hourly rate and 15% of which was indirect labor at $13 hourly rate
• Depreciation on plant at $1,900
• Plant insurance at $850
• Plant property tax at $420

Zulia did not have any indirect materials. Zulia produced 49,000 bottles and sold 44,000 bottles during July 2021. The sales price was $3.30 per bottle.

Q1. Find the predetermined overhead allocation rate for 2021. Round to the nearest cents.

		$4.30/DLHr
		$4.50/DLHr
		$4.70/DLHr
		$4.90/DLHr

Q2. Find the direct materials used during July 2021.

		$41,900
		$43,900
		$45,900
		$47,900

Q3. Find the allocated manufacturing overhead costs for July 2021. Round to the nearest dollars.

		$8,041
		$9,460
		$10,041
		$11,460

Q4. Find the cost of goods manufactured per unit during July 2021. Round to the nearest cents.

		$1.34
		$1.64
		$1.94
		$2.24

Q5. Find the cost of goods sold after adjustment for overallocated or underallocated manufacturing overhead during July 2021. Round to the nearest dollars.

		$69,759
		$70,921
		$71,759
		$72,921

Q6. Find the gross profit for July 2021. Round to the nearest dollars.

		$71,441
		$72,441
		$73,441
		$74,441