Question

The Work in Process Inventory account of a manufacturing company has a $3,750 debit balance. The company applies overhead using direct labor cost. The cost sheet of the only job still in process shows direct material cost of $1,730 and direct labor cost of $790. Therefore, the amount of applied overhead is:

• $790.

• $1,230.

• $2,520.

• $2,020.

• $2,960.

2.

Using the following accounts and a predetermined overhead rate of 150% of direct labor cost, compute the amount of applied overhead.

Work in Process Inventory
Beginning WIP	34,900
Direct materials	55,100
Direct labor	?
Factory overhead	?
To finished goods			213,300
Ending WIP	24,900

Finished Goods Inventory
Beginning FG	4,900
Cost of Goods Mfg'd	213,300

• $148,200.

• $88,920.

• $90,000.

• $82,650.

• $59,280.

3.

If one unit of Product Z2 used $3.10 of direct materials and $3.60 of direct labor, sold for $10.00, and was assigned overhead at the rate of 36% of direct labor costs, how much gross profit was realized from this sale? (Round your intermediate calculations and final answer to two decimal places.)

• $3.30.

• $2.00.

• $1.30.

• $10.00.

• $6.70.

Answer 1