MULTIPLE CHOICE. Choose the one alternative that best completes the question. 1). A company has an overhead application rate of 125% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $20,000? a). $5,000 b). $16,000 c). $25,000 d). $125,000 e). $250,000 2). CWN Company uses a job order costing system and last period incurred $80,000 of actual overhead and $100,000 of direct labor. CWN estimates that its overhead next period will be $75,000. It also expects to incur $100,000 of direct labor. If CWN bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be: a). 75% b). 80% c). 107% d). 125% e). 133% 3). Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The total manufacturing costs added during the period are: a). $440,000 b) $470,000 c). $500,000 d). $570,000 e) $540,000 4. Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $396,000; materials of $410,000 and direct labor of $220,000. During the year Adams incurred 5418,000 in materials costs, 5413,200 in overhead costs and $224,000 in direct labor costs. Compute the amount of overhead applied to jobs during the year. a). 5396,000 b). $424.450 5413,190 d) 5413,200 el 5403.200