1.) Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At...
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Accounting
1.) Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $276,900; materials of $403,000 and direct labor of $213,000. During the year Adams incurred $411,000 in materials costs, $414,600 in overhead costs and $217,000 in direct labor costs. Compute the overhead application rate.
Multiple Choice
130%.
69%.
77%.
191%.
188%.
2.) Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $580,000, and direct labor costs to be $290,000. Actual overhead costs for the year totaled $596,000, and actual direct labor costs totaled $324,000. At year-end, the balance in the Factory Overhead account is a:
Multiple Choice
$596,000 Debit balance.
$324,000 Debit balance.
$52,000 Credit balance.
$648,000 Credit balance.
$52,000 Debit balance.
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