Question

1)

The Thomlin Company forecasts that total overhead for the current year will be $11,326,000 with 180,000 total machine hours. Year to date, the actual overhead is $7,576,000 and the actual machine hours are 98,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is

Round the factory overhead rate to the nearest dollar before multiplying by the number of hours.

a.$1,402,000 underapplied

b.$2,103,000 overapplied

c.$1,402,000 overapplied

d.$2,103,000 underapplied

2)

Compute conversion costs given the following data: direct materials, $354,100; direct labor, $193,800; factory overhead, $224,300 and selling expenses, $36,700.

a.$772,200

b.$418,100

c.$187,600

d.$578,400

3)

Product costs

a.are expensed as costs are incurred for direct labor, direct materials, and factory overhead

b.appear on both the income statement and balance sheet

c.appear only on the income statement

d.appear only on the balance sheet

4)

Selected accounts with a credit amount omitted are as follows

Work in Process
Apr. 1	Balance	7,700	Apr. 30	Goods finished	X
30	Direct materials	67,100
30	Direct labor	190,800
30	Factory overhead	57,240

Finished Goods
Apr. 1	Balance	14,900
30	Goods finished	300,000

What was the balance of Work in Process as of April 30?

a.$22,840

b.$14,900

c.$57,240

d.$300,000

Answer 1

Solution to the QUESTION-1

The predetermined overhead rate

The predetermined overhead rate = Budgeted overhead / Total machine hours

= $11,326,000 / 180,000 MH

= $$63 per MH

Applied overhead

Applied overhead = Actual machine hours x predetermined overhead rate

= 98,000 MH x $63 per MH

= $6,174,000

Under applied overhead

Under applied overhead = Actual overhead - Applied overhead

= $7,576,000 - $6,174,000

= $1,402,000 (Under applied)

“Hence, the answer will be (a)-$1,402,000 underapplied”

PLEASE BE NOTED (More than 1 Question)

Dear student, as per the CHEGG guidelines, the experts are advised to answer the first question only when multiple questions were asked. Here, the multiple questions have asked in the single post and therefore, only the first question have been answered as per the CHEGG guidelines. Can you please ask the remaining questions separately. THANK YOU..!!!