1/ Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $334,500; materials of $413,000 and direct labor of $223,000. During the year Adams incurred $421,000 in materials costs, $419,000 in overhead costs and $227,000 in direct labor costs. Compute the overhead application rate.

Multiple Choice

185%.

81%.

67%.

184%.

150%.

2/ The Work in Process Inventory account for DG Manufacturing follows. Compute the cost of jobs completed and transferred to Finished Goods Inventory.

Work in Process Inventory
Beginning WIP	5,400
Direct materials	48,000
Direct labor	30,500
Applied Overhead	16,700
Total Manufacturing Costs	100,600
To Finished Goods			?
Ending WIP	10,700

The cost of units transferred to finished goods is:

Multiple Choice

$111,300.

$100,600.

$98,800.

$89,900.

$95,200.

3/ Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Cosi expects to incur $760,000 of overhead during the next period, and expects to use 46,000 labor hours at a cost of $10.00 per hour. What is Cosi Company's overhead application rate?

Multiple Choice

6.05%.

60.5%.

165%.

1652%.

65%.