Accounting

 1.

Daguio Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $224,580. At the end of the year, actual direct labor-hours for the year were 18,200 hours, manufacturing overhead for the year was underapplied by $12,100, and the actual manufacturing overhead was $219,580. The predetermined overhead rate for the year must have been:

| $10.53 per direct labor-hour |

| $12.06 per direct labor-hour |

| $11.40 per direct labor-hour |

| $12.34 per direct labor-hour |

 2.

The following data have been recorded for recently completed Job 674 on its job cost sheet. Direct materials cost was $2,039. A total of 32 direct labor-hours and 175 machine-hours were worked on the job. The direct labor wage rate is $14 per labor-hour. The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $15 per machine-hour. The total cost for the job on its job cost sheet would be:

| $2,068 |

| $5,112 |

| $2,967 |

| $2,487 |

 3.

Job 731 was recently completed. The following data have been recorded on its job cost sheet:

The company applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 731 would be:

| $3,288 |

| $4,254 |

| $5,094 |

| $2,418 |

4.

The operations of the Kerry Company resulted in underapplied overhead of $5,000. The entry to close out this balance to Cost of Goods Sold and the effect of the underapplied overhead on Cost of Goods Sold would be:

| Option A |

| Option B |

| Option C |

| Option D |