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If annual overhead costs are expected to be $ 750,000 and direct labor costs are expected to be $ 1,000,000, then if the activity base is direct labor costs:
$ 1.33 is the predetermined overhead rate.
for every dollar of manufacturing overhead, 75 cents of direct labor will be assigned.
a predetermined overhead rate cannot be determined.
for every dollar of direct labor, 75 cents of manufacturing overhead will be assigned.
Multiple Choice Question 112
Gulick Company developed the following data for the current year:
Beginning work in process inventory
$ 240,000
Direct materials used
144,000
Actual overhead
288,000
Overhead applied
216,000
Cost of goods manufactured
264,000
Total manufacturing costs
720,000
Gulick Company ' s ending work in process inventory is
$ 480,000.
$ 456,000.