Question: Question 5 (1 point) Freeman Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. At the beginning

 Question 5 (1 point) Freeman Company uses a predetermined overhead rate

Question 5 (1 point) Freeman Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $150,000 and direct labour hours would be 10,000. The actual figures for the year were $186,000 for manufacturing overhead and 12,000 direct labour hours. The cost records for the year will show which of the following? O Al Overapplied overhead of $30,000. B) Underapplied overhead of $30,000. C) Underapplied overhead of $6,000. D) Overapplied overhead of $6,000. O a Question 6 (1 point) Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labour cost basis in Department A and on a machine hours basis in Department B. At the beginning of the most recently completed year, the company made the following estimates: Direct labour $56,000 $33,000 cost Manufacturing $67,200 $45,000 overhead Direct labour 8,000 9.000 hours Machine hours 4,000 15,000 What predetermined overhead rate would be used in Departments A and B, respectively? OA) 83% and $5.00 B) 83% and $3.00. C) 120% and $3.00. D) 120% and $5.00

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