Use the following information to answer questions 1 and 2:
w. At the beginning of 20x7, estimated overhead costs were $156,000 and estimated direct labor hours were 20,800. Actual overhead costs amounted to $166,400, and 20,904 direct labor hours were worked.
1. What predetermined overhead rate should the law firm use to apply overhead to clients? (Round to the nearest cent.)
A. $7.46 C. $7.96
B. $7.50 D. $8.00
2. How much overhead should be applied to a client whose file notes 120 direct labor hours in 20x7? (Round to the nearest cent.)
A. $895.20 C. $955.20
B. $900.00 D. $960.00
3. Which of the following statements accurately describes cost flows in a manufacturing firm utilizing JIT?
A. Direct labor and direct materials are maintained in a WIP account for long periods of time.
B. Manufacturing overhead is recorded in the raw materials account.
C. There's little need to maintain raw materials, WIP, or finished-goods accounts.
D. There's no need to maintain a cost of goods sold account.
Use the following information to answer question 4:
Direct materials used?$31,000
4. What are the total nonmanufacturing costs?
A. $43,250 C. $63,000
B. $57,250 D. $106,250
5. For a student who is considering housing options for next semester, cost, proximity to
campus, and square feet of living area are all examples of
A. alternative solutions. C. problems.
B. relevant variables. D. decision objectives.
In this Solution the author provides the answer to each question and shows calculations where necessary.