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Question 1 - A manufacturing company allocates overhead at a fixed rate of $18 per hour based on direct labor hours. During the month, total overhead incurred was $150,000, and the total direct labor hours worked was 4,000. Job number 5-50 had 600 hours of direct labor. What is the amount of overhead allocated to job 5-50?
A) $10,800
B) $12,000
C) $150,000
D) $72,000
Question 2 - The welding department had beginning work in process of 25,000 units, ending work in process of 26,000 units, and units transferred out of 50,000 units. What was the number of units started or transferred in?
A) 51,000
B) 50,000
C) 70,000
D) 66,000
Question 3 - Drake Corp. is a job lot manufacturer. The budget for the month of June calls for 5,000 direct labor hours to be worked. Budgeted overhead is $100,000 with a predetermined rate of $20 per hour. Overhead is applied based on actual direct hours worked. Actual direct hours were 7,000 and actual overhead spending was $126,000. What was the under applied or over applied overhead for the month of June? Over applied is shown as a negative number.
A) $26,000
B) 26,000
C) ($8,000)
D) ($14,000)
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