Reference no: EM133039540

Questions -

Q1. Serit Company's predetermined overhead rate is based on direct labor hours. At the beginning of the current year, the company estimated that its manufacturing overhead would total $220,000 during the year. During the year, the company incurred $200,000 in actual manufacturing overhead costs. The Manufacturing Overhead account showed that overhead was overapplied by $8,000 during the year. If the predetermined overhead rate was $20.00 per direct labor hour, how many hours were worked during the year?

A) 9,600 hours

B) 10,000 hours

C) 10,400 hours

D) 11,000 hours

Q2. In a perpetual inventory system, purchases of merchandise on account are recorded by debiting:

a. Accounts Payable.

b. Purchases.

c. Cost of Goods Sold.

d. Inventory.

Q3. For which of the following businesses would the job order cost system be appropriate?

a. Construction contractor

b. Meat processor

c. Oil refinery

d. Automobile manufacturer