1. In a job-order costing system that is based on machine-hours, which of the following formulas is correct?A. Predetermined overhead rate = Actual manufacturing overhead Actual machine-hours. B. Predetermined overhead rate = Actual manufacturing overhead Estimated machine-hours. C. Predetermined overhead rate = Estimated manufacturing overhead Estimated machine-hours. D. Predetermined overhead rate = Estimated manufacturing overhead Actual machine-hours.

2. Purves Corporation is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $121,000 and 10,000 direct labor-hours for the period. The company incurred actual total fixed manufacturing overhead of $113,000 and 10,900 total direct labor-hours during the period. The predetermined overhead rate is closest to:

   A. $10.37 B. $12.10 C. $11.10 D. $11.30

7. A manufacturer of cedar shingles has supplied the following data:

Bundles of cedar shakes produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense

Variable selling and administrative expense Fixed selling and administrative expense Net operating income

The company's contribution margin ratio is closest to: A. 72.6%

B. 65.7% C. 34.3% D. 27.4%

360,000 $ 2,412,000 $ 1,170,000 $ 714,000 $ 414,000 $ 82,000 $ 32,000