10. What is the cost of goods sold for the year? a. $109,000 b. $140,000 c. $130

Question

10. What is the cost of goods sold for the year? a. $109,000 b. $140,000 c. $130,000 d. $70,000 QUESTIONS 11-13 ARE BASED ON THE FOLLOWING The following pertains to Macro Industries for 2015: Budgeted Overhead Costs Estimated Direct Labor Hours Actual Overhead Costs Actual Direct Labor Hours $1,200,000 40,000 hours 5,1,175,000 41,000 hours 11. What is Macro's Overhead Application Rate for 2015? a. $29.27 b. $30.00 c. $15.00 d. $29.38 12. Based on your answer in Question 12, how much overhead was applied to Work in Process during the year? a. $1,200,070 b. $615,000 c. $1,230,000 d. $1,204,580 13. What type of balance is the manufacturing overhead account at the end of the year, and is it over-applied or under-applied? a. Debit; Over-applied b. Credit; Under-applied c. Debit; Under-applied d. Credit: Over-applied 14. In an activity-based costing system, manufacturing overhead costs are divided into separate and allocated to products based on their respective cost drivers: a. Cost drivers b. Cost pools c. Activity bases d. Indirect cost centers

Explanation / Answer

Q11 b $30 Statement showing computations Particulars Amount Budgeted Overhead Costs       1,200,000.00 Estimated Direct Labour Hours             40,000.00 Overhead rate = 1,200,000/40,000                      30.00 Q12 C 1,230,000 Overhead Applied= 41,000*30       1,230,000.00 Q13 a Debit Overapplied Since applied overhead is more than actual overhead , Therefore overhead is overapplied Q14 b Cost pools

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