Practice problems for Chapters 1. 2. 3. 4 and 6/6A Fall 2019 1. Lilah's Toy Company (LTC) manufactures children's toys. LTC estimates that its matching overhead costs for 2013 will be $2.500.000 (variable overhead of $1.600.000 and fixed overhead of $900.000). LTC applies manufacturing overhead to inventory using direct labor hours as its base LTC estimates its 2013 direct labor hours to be 10,000 hours The actual 2013 manufacturing overhead costs were $2.900.000 (variable overhead of $1,900,000 and fixed overhead of $1,000,000) and actual direct labor hours were 12.000. What is the over or under applied overhead in 2013? a. Under applied overhead of $400,000 b. Over applied overhead of $20,000. c. Under applied overhead of $300,000. d. Under applied overhead of $100,000 e. Over applied overhead of $100,000. 2. The following information was taken from the books of GMS Corporation for June: Raw materials inventory, beginning S 200 Raw materials, ending $ 300 Purchases of raw materials $1,500 Direct labor $1,800 Manufacturing overhead $2,300 Work in process inventory, beginning S 800 Work in process inventory, ending $ 300 Finished goods inventory, beginning $1.200 Finished goods inventory, ending $1,000 What was the cost of goods sold for June? a $2,200 b. $6,000 c. $6.200 d. $5,600 e. $4,100 3. Complex Company has the following estimated costs for next year: Direct materials $15,000 Direct labor $55,000 Sales commissions $75,000 Salary of production supervisor $35,000 Indirect materials $ 5,000 Advertising expense $11,000 Rent on factory equipment $16,000