ACCT 526 Midterm 2022 B Term.

ACCT 526 Midterm 2022 B Term. 100% TRUSTED Answers, guidelines, workings and references. Question 1 Carlson Company uses a predetermined rate to apply overhead. At the beginning of the year, Carlson estimated its overhead costs at $260,000, direct labor hours at 45,000, and machine hours at 20,000. Actual overhead costs incurred were $172,000, actual direct labor hours were 42,000, and actual machine hours were 13,000. If the predetermined overhead rate is based on machine hours, what will be the total amount applied to the overhead account for the year for Carlson? a. $172,000 b. $264,000 c. $177,000 d. $169,000 $260,000 / 20,000 = $13/ machine hour $13x13,000 machine hours= $169,000 The correct answer is: $169,000 Question 2 Manufacturing overhead: a. consists of all manufacturing costs other than direct materials. b. consists of all costs other than direct materials. c. consists of all manufacturing costs other than direct materials and direct labor. d. consists of all costs other than direct materials and direct labor. The correct answer is: consists of all manufacturing costs other than direct materials and direct labor. Question 3 Which of the following activities include the issuance of bonds? a. Investing activities b. Financing activities c. Selling activities d. Manufacturing activities Financing activities include the issuance of bonds The correct answer is: Financing activities