1. Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for next year:

   Direct materials	$	1,000
   Direct labor	$	3,000
   Sales commissions	$	4,000
   Salary of production supervisor	$	2,000
   Indirect materials	$	400
   Advertising expense	$	800
   Rent on factory equipment	$	1,000

   Reamer estimates that 500 direct labor-hours and 1,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be:

   	A.	$6.80 per machine-hour
   	B.	$6.00 per machine-hour
   	C.	$3.00 per machine-hour
   	D.	$3.40 per machine-hour

1.5 points

QUESTION 8

1. Valvano Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $440,000, variable manufacturing overhead of $2.20 per machine-hour, and 50,000 machine-hours. The estimated total manufacturing overhead is closest to:

   	A.	$440,000
   	B.	$110,000
   	C.	$440,002
   	D.	$550,000

1.5 points

QUESTION 9

1. Almaraz Corporation has two manufacturing departments--Forming and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates:

   	Forming		Finishing			Total
   Estimated total machine-hours (MHs)		7,000			3,000			10,000
   Estimated total fixed manufacturing overhead cost	$	40,600		$	8,100		$	48,700
   Estimated variable manufacturing overhead cost per MH	$	1.30		$	2.80

   Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. That predetermined manufacturing overhead rate is closest to:

   	A.	$6.62
   	B.	$4.87
   	C.	$4.10
   	D.	$7.10

1.5 points

QUESTION 10

1. Bernson Corporation is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $492,000 and 30,000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $517,000 and 28,300 total machine-hours during the period. The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to: (Round your intermediate calculations to 2 decimal places.)

   	A.	$464,120
   	B.	$492,000
   	C.	$487,703
   	D.	$25,000

1.5 points