A. Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as
period costs
conversion costs
product costs
factory overhead costs

B. The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. The predetermined overhead rate based on machine hours is
a. $50 per machine hour
b. $62 per machine hour
c. $45 per machine hour
d. $48 per machine hour

C. The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 with 300,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is
a. $500,000 underapplied
b. $500,000 overapplied
c. $1,000,000 underapplied
d. $1,000,000 overapplied

Answer rating: 100% (QA)

A Period costs Costs that are incurred in generating revenues during t... View the full answer