QUESTION 39

1. Pendart, Inc., which uses a predetermined overhead rate of $45 per direct labor hour, incurred actual overhead costs of $900,000 and used 22,000 direct labor hours. How much was Bendarts over- or under-applied overhead for the month of June?

   		22,000 underapplied
   		22,000 overapplied
   		90,000 overapplied
   		90,000 underapplied

QUESTION 40

1. Hamilton Inc. reports the following numbers on their income statement (contribution format). What is the variable cost per unit?

   Sales (8,000 units)	$600,000
   Less: variable expenses	450,000
   Contribution margin	$150,000
   Less: fixed expenses	120,000
   Net operating income	$ 30,000

   		$15.00
   		$56.25
   		$18.75
   		$75