Question : 21) If direct labor for the month $100,000, and overhead : 1171246

 

21) If direct labor for the month is $100,000, and overhead is applied based on 75% of direct labor dollars, what is the entry to apply overhead?

A) Debit Work-in-Process Inventory $75,000; credit Payroll Payable $75,000

B) Debit Overhead-Applied $75,000; credit Work-in-Process Inventory $75,000

C) Debit Work-in-Process Inventory $75,000; credit Manufacturing Overhead-Applied $75,000

D) Debit Work-in-Process Inventory $100,000; credit Manufacturing Overhead-Applied $100,000

22) Direct labor for the month is $50,000, and overhead is applied based on direct labor cost. Annual overhead is estimated to be $450,000, and annual direct labor is estimated to be $800,000. What is the entry to apply overhead to production?

A) Debit Work-in-Process Inventory $28,125; credit Payroll Payable $28,125

B) Debit Manufacturing Overhead-Applied $28,125; credit Work-in-Process Inventory $28,125

C) Debit Work-in-Process Inventory $28,125; credit Manufacturing Overhead-Applied $28,125

D) Debit Work-in-Process Inventory $50,000; credit Manufacturing Overhead-Applied $50,000

23) The entry to record rent expense $9,000, supervision expense $19,000, and depreciation expense $7,000 to overhead is:

A) debit Manufacturing Overhead-Applied $35,000; credit Rent Expense $9,000, Supervision $19,000, Depreciation Expense $7,000.

B) debit Work in Process Inventory $35,000; credit Rent Expense $9,000, Supervision $19,000, Depreciation Expense $7,000.

C) debit Manufacturing Overhead-Applied $35,000; credit Manufacturing Overhead-Control $35,000.

D) None of these answers is correct.

24) Madison Manufacturing is using a manufacturing overhead application rate of 130% of direct labor dollars. A job uses 10 direct labor hours at $20 per hour. How much overhead should be applied to the job?

A) $235

B) $265

C) $260

D) $250

25) Molly Manufacturing is using a manufacturing overhead application rate of 125% of machine cost. A job uses 35 machine hours at $9/hour. How much overhead should be applied to the job?

A) $315.00

B) $393.75

C) ($393.75)

D) ($315.00)

26) Adams Manufacturing has estimated manufacturing overhead at $125,000 and has estimated direct labor of 10,000 direct labor hours at $10.00 per hour. The overhead rate per direct labor dollar would be:

A) $0.80.

B) $8.00.

C) $1.25.

D) $7.20.

27) Sylvan Manufacturing applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $150,000 and direct labor hours would be 15,000. The applied overhead rate per direct labor hour is:

A) $7.50.

B) $15.00.

C) $10.00

D) None of the above

28) If the overhead applied rate based on direct labor hours is $7.00 and the actual labor hours are 500, what is the amount credited to Manufacturing Overhead-Applied?

A) $3,500

B) $350

C) $35,000

D) None of the above

29) The estimated manufacturing overhead cost was $25,000 and estimated machine hours were 10,000. Actual manufacturing overhead cost was $24,000 and actual machine hours were 12,000. The overhead application rate per hour based on machine hours is:

A) $2.50.

B) $2.00.

C) $2.40.

D) $2.08.

30) Estimated manufacturing overhead costs were $60,000 and the number of estimated machine hours was 20,000. Actual overhead costs were $61,000 and the actual number of machine hours used was 20,500. Based on machine hours, the overhead application rate per hour is:

A) $3.00.

B) $2.93.

C) $3.10.

D) $3.13.

 

 

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