1. Which of the following statements is true if the overhead control account has a debit balance at the end of the period?
a. Overhead is over-applied, and the difference should be credited to the appropriate accounts.
b. Overhead is over-applied, and the difference should be debited to the appropriate accounts.
c. Overhead is under-applied, and the difference should be debited to the appropriate accounts.
d. Overhead is under-applied, and the difference should be credited to the appropriate accounts.

Use the following information to answer Questions.

The following information is selected from the accounting records of Walmer Company:

2. What was the manufacturing overhead cost for the year?
a. $ 8,000
b. $ 9,600
c. $ 80,000
d. $115,200

3. What was the prime cost for the year?
a. $176,000
b. $197,000
c. $213,000
d. $293,000

Transcribed Image Text:

January 1, 2017 $ 35,000 December 31, 2017 $ 38,000 Direct materials Work-in-process 42,000 28,000 Finished goods 32,000 27,000 $120,000 Direct materials purchased $ 96,000 Direct labour Direct labour rate per hour 12 Manufacturing overhead rate per direct labour hour 10