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ACC 12 multiple choice questions

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Question;32. Strong Company applies overhead based on machine hours. At the beginning of 20x1,the company estimated that manufacturing overhead would be $500,000, and machinehours would total 20,000. By 20x1 year-end, actual overhead totaled $525,000, andactual machine hours were 25,000. On the basis of this information, the 20x1predetermined overhead rate was:A. $0.04 per machine hour.B. $0.05 per machine hour.C. $20 per machine hour.D. $21 per machine hour.E. $25 per machine hour.33. Dixie Company, which applies overhead at the rate of 190% of direct material cost,began work on job no. 101 during June. The job was completed in July and sold duringAugust, having accumulated direct material and labor charges of $27,000 and $15,000,respectively. On the basis of this information, the total overhead applied to job no. 101amounted to:A. $0.B. $28,500.C. $51,300.D. $70,500.E. $79,800.34. Huxtable charges manufacturing overhead to products by using a predeterminedapplication rate, computed on the basis of machine hours. The following data pertain tothe current year:Budgeted manufacturing overhead: $480,000Actual manufacturing overhead: $440,000Budgeted machine hours: 20,000Actual machine hours: 16,000Overhead applied to production totaled:A. $352,000.B. $384,000.C. $550,000.D. $600,000.E. some other amount.35. Simone uses a predetermined overhead application rate of $8 per direct labor hour. Areview of the company's accounting records for the year just ended discovered thefollowing:Underapplied manufacturing overhead: $7,200Actual manufacturing overhead: $392,000Budgeted labor hours: 50,000Simone's actual labor hours worked totaled:A. 48,100.B. 49,100.C. 49,900.D. 50,900.E. cannot be determined based on the information presented.36. Trenton worked on four jobs during its first year of operation: nos. 401, 402, 403, and404. A review of job no. 403's cost record revealed direct material charges of $40,000 andtotal manufacturing costs of $50,000. If Trenton applies overhead at 150% of direct laborcost, the overhead applied to job no. 403 must have been:A. $0.B. $6,000.C. $4,000.D. $3,333.E. $5,000.41. Job no. C12 was completed in November at a cost of $28,500, subdivided as follows:direct material, $13,500, direct labor, $6,000, and manufacturing overhead, $9,000. Thejournal entry to record the completion of the job is:A.B.C.D.E.45. Blarney Company applies manufacturing overhead by using a predetermined rate of50% of direct labor cost. The data that follow pertain to job no. 764:If Blarney adds a 40% markup on total cost to generate a profit, which of the followingchoices depicts a portion of the accounting needed to record the sale of job no. 764?A. Choice AB. Choice BC. Choice CD. Choice DE. Choice E46. Armada Company applies manufacturing overhead by using a predetermined rate of150% of direct labor cost. The data that follow pertain to job no. 831:If Armada adds a 30% markup on total cost to generate a profit, which of the followingchoices depicts a portion of the accounting needed to record the credit sale of job no.831?A. Choice AB. Choice BC. Choice CD. Choice DE. Choice E47. Media, Inc., an advertising agency, applies overhead to jobs on the basis of directprofessional labor hours. Overhead was estimated to be $150,000, direct professionallabor hours were estimated to be 15,000, and direct professional labor cost was projectedto be $225,000. During the year, Media incurred actual overhead costs of $146,000,actual direct professional labor hours of 14,500, and actual direct labor cost of $222,000.By year-end, the firm's overhead was:A. $1,000 underapplied.B. $1,000 overapplied.C. $4,000 underapplied.D. $4,000 overapplied.E. $5,000 underapplied.48. Mahler, Inc., applies manufacturing overhead at the rate of $40 per machine hour.Budgeted machine hours for the current period were anticipated to be 120,000, however,a lengthy strike resulted in actual machine hours being worked of only 90,000. Budgetedand actual manufacturing overhead figures for the year were $4,800,000 and $4,180,000,respectively. On the basis of this information, the company's year-end overhead was:A. overapplied by $580,000.B. underapplied by $580,000.C. overapplied by $1,200,000.D. underapplied by $1,200,000.E. underapplied by $900,000.49. Tiffany charges manufacturing overhead to products by using a predeterminedapplication rate, computed on the basis of labor hours. The following data pertain to thecurrent year:Which of the following choices is the correct status of manufacturing overhead at yearend?A. Overapplied by $10,000.B. Underapplied by $10,000.C. Overapplied by $35,000.D. Underapplied by $35,000.E. Overapplied by $45,000.56. Fletcher, Inc. disposes of under- or overapplied overhead at year-end as an adjustmentto cost of goods sold. Prior to disposal, the firm reported cost of goods sold of $590,000in a year when manufacturing overhead was underapplied by $15,000. If sales revenuetotaled $1,400,000, determine (1) Fletcher's adjusted cost of goods sold and (2) grossmargin.A. Choice AB. Choice BC. Choice CD. Choice DE. Choice E

 

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