In calculating a predetermined overhead rate a recent

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71. In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base related to a. direct labor hours. b. indirect labor dollars. c. machine hours. d. raw material dollars. 72. If annual overhead costs are expected to be $600,000 and direct labor costs are expected to be $1,000,000, then 73. Overhead application is recorded with a 74. At the beginning of the year, Monroe Company estimates annual overhead costs to be $600,000 and that 300,000 machine hours will be operated. Using machine hours as a 2- 8
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Job Order Cost Accounting base, the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours is 75. The predetermined overhead rate may be computed using all of the following activity bases except a. direct labor costs. b. direct labor hours. c. machine hours. d. indirect labor costs. 76. Historically, the activity base used in computing the predetermined overhead rate has been 77. At the end of each month, the sum of the costs shown on the job cost sheets should equal the balance in 78. Each of the following costs can be assigned to specific jobs on the basis of actual costs incurred except 79. The predetermined overhead rate is computed using a. actual overhead costs. b. applied overhead costs. c. estimated overhead costs. d. predetermined overhead costs. 80. In determining total manufacturing costs on the cost of goods manufactured schedule, 2- 9
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Use the following information for questions 81–82. Becker Company developed the following data for the current year: Beginning work in process inventory $ 60,000 Direct materials used 36,000 Actual overhead 72,000 Overhead applied 54,000 Cost of goods manufactured 66,000 Total manufacturing costs 180,000
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