At the end of the year, overhead applied was $3,706,000. Actual overhead was $3,418,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to

a. decrease by $576,000

b. decrease by $288,000

c. increase by $288,000

d. increase by $576,000

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $345,800 and direct labor hours would be 42,600. Actual manufacturing overhead costs incurred were $320,800, and actual direct labor hours were 55,000. What is the predetermined overhead rate per direct labor hour?

a.$12.18

b.$6.49

c.$9.74

d.$8.12

In a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following entries?

a. debit Finished Goods—Dept. A; credit Work in Process—Dept. B

b. debit Work in Process—Dept. B; credit Cost of Goods Sold—Dept. A

c. debit Work in Process—Dept. B; credit Work in Process—Dept. A

d. debit Work in Process—Dept. B; credit Finished Goods—Dept. A

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $327,544 and direct labor hours would be 40,943. Actual factory overhead costs incurred were $395,151, and actual direct labor hours were 51,452. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

a. $411,616 overapplied

b. $16,465 underapplied

c. $16,465 overapplied

d. $84,072 underapplied

Answer rating: 100% (QA)

Part I Overhead applied 3706000 Actual overhead 3418000 3D Ov... View the full answer