For 2017, Looz Supply Manufacturing uses machine-hours as the only overhead cost-allocation base. The accounting records contain the following information:

Estimated Actual

Manufacturing overhead costs $400,000 $480,000

Machine-hours 80,000 100,000

Using job costing, the 2017 budgeted manufacturing overhead rate is:

Select one:

a. $8.00 per machine-hour

b. $12.00 per machine-hour

c. $10.00 per machine-hour

d. $5.160 per machine-hour

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Wheel and Tire Manufacturing currently produces 1,000 tires per month. The following per unit data apply for sales to regular customers:

Direct materials $20

Direct manufacturing labor 3

Variable manufacturing overhead 6

Fixed manufacturing overhead 10

Total manufacturing costs $39

The plant has capacity for 3,000 tires and is considering expanding production to 2,000 tires. What is the total cost of producing 2,000 tires

Select one:

a. $78,000

b. $39,000

c. $62,000

d. $68,000

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All of the following are general ledger accounts EXCEPT:

Select one:

a. the Accounts Receivable subsidiary account for whigt Electric

b. the Advertising Costs account

c. the Prepaid Insurance Control account

d. the Salaries Payable Control account

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The Materials Control account is increased when:

Select one:

a. materials are requisitioned for production

b. direct materials are purchased

c. Both A and B are correct.

d. indirect materials are purchased

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The following information pertains to Alleigh's Mannequins:

Manufacturing costs $1,500,000

Units manufactured 30,000

Units sold 29,500 units sold for $85 per unit

Beginning inventory 0 units

What is the amount of gross margin?

Select one:

a. $2,507,500

b. $1,475,000

c. $1,032,500

d. $1,500,000

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