Question

Porte Inc. Customizes sails for sailboats. On 1/1/20, Work-in-process inventory was $60,800. During 2020: product costs were $453,200, Prime Costs were $230,400, and the cost of goods manufactured was $390,600. Calculate the amount of overhead applied during 2020.

A= $160,200

B= None of these

C= $1,135,000

D=$123,400

E= $329,800

I think the answer is A

Which of the following is true?

A= U.S. firms must submit the data and techniques used for internal decision making to the securities and exchange commission

B= More than one of these choices is correct

C=The financial accounting standard board has legal jurisdiction over companies who have issued securities to the public

D= The internal revenue code is set by the U.S. Congress

E= None of these are correct

        

I think the answer is D

Caruso Company uses a Normal Cost system with direct labor hours as the activity driver for a single plant wide overhead pool. Caruso correctly estimated its overhead at the beginning of the year but under-estimated its direct labor hours. Which of the following is true at the end of the year?

A= The company did not have an overhead variance because budgeted overhead equaled actual overhead

B= The firm over applied overhead and needs to record a credit to cost of goods sold

C= The firm under applied overhand and needs to record a debit to cost of goods sold

D= there is not enough information to determine whether an overhead variance occurred

E= none of these

Answer 1

Question 1

Correct answer---------------B= None of these.

.

Correct amount of manufacturingoverhed are $222,800 as calculated below

Total product cost (Direct material +Direct labor +Overhead)	$    453,200
Less: Prime cost	$    230,400
Conversion cost	$    222,800

Prime cost is direct material + direct labor so if we deduct total prime cost from product we get overhead applied.