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Unformatted text preview: Accounting 2033 Chapter 3 Quiz 1. In a job order cost system using predetermined manufacturing overhead rates, indirect materials issued into production usually are recorded as an increase in: Manufacturing Overhead. 2. Nil Co. uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. For the year ended December 31, Nil's estimated manufacturing overhead was $600,000, based on an estimated volume of 50,000 direct labor hours, at a direct labor rate of $6.00 per hour. Actual manufacturing overhead amounted to $620,000, with actual direct labor cost of $325,000. For the year, manufacturing overhead was: overapplied by $30,000. 3. Paulson Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for next year: Direct materials $25,000 Direct labor 22,000 Advertising expense 15,000 Rent on factory building 13,500* Depreciation on factory equipment 6,500*...
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- Spring '11