Question

1.A time ticket is a source document that an employee uses to report how much direct and indirect labor was performed for a job and is used to determine the amount of direct labor to charge to the job and the amount of indirect labor to charge to factory overhead.

a.True

b.False

2.Using the following accounts and an overhead rate of 130% of direct labor cost, compute the amount of applied overhead.

Work in Process Inventory				Finished Goods Inventory
DR		CR		DR		CR
Beg. Bal.	35,200			Beg. Bal.	5,200
D.M.	55,300				203,300
D.L.	?
O.H.	?	F.G.	203,300
End. Bal.	25,200

a.$78,000.

b.$60,000.

c.$138,000.

d.$71,890.

e.$90,500.

Answer 1