Practice test Chap3

Practice test Chap3 -...

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Unformatted text preview: Name:_______________________________________________Chap3 Acctg 230 1. There are two acceptable methods for closing out any balance of under- or overapplied overhead. One method involves allocation, whereas the other closes any balance directly to: A) Cost of Goods Sold. B) Cost of Goods Manufactured. C) Work in Process inventory. D) Finished Goods inventory. Use the following to answer questions 2-3: Snappy Company has a job-order cost system and uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor-hours were estimated at $100,000 and 40,000 hours, respectively, for the year. In July, Job #334 was completed at a cost of $5,000 in direct materials and $2,400 in direct labor. The labor rate is $6 per hour. By the end of the year, Snappy had worked a total of 45,000 direct labor-hours and had incurred $110,250 actual manufacturing overhead cost....
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Practice test Chap3 -...

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