1. Mahler, In.c applies manufacturing overhead at the rate of $40 per machine hour. Budgeted machine hours for the current period were anticipated to be 120,000; however; a lengthy strike resulted in actual machine hours being worked of only 90,000. Budgeted and actualk manufacturing overhead figures for a year were 4,8000,000 and 4,180,000 respectively. On the basis of this information, the company year end overhead was:
Overapplied by 580,000
Underapplied 580,000
Overapplied by 1,200,000
Underapplied by 1,200,000
Underapplied by 90,000

2. Which of the following statements represents a similarity between financial and managerial accounting?
Both are useful in providing information for external users
Both are governed by GAAP
Both draw upon data from an organizations accounting system
Both are solely concerned with historical transactions

3.Much of managerial accounting information is based on:
A cost benefit theme
Profit maximization
Cost minimization
The generation of external information
Effectiveness but not efficiency

4. The account records of San Diego revealed the following cost among others:
Factory insurance: 32,000
Raw Material used: 256,000
Customer entertainment: 15,000
Indirect labor: 45,000
Depreciation on sales cars: 22,000
Production equipment rental cost: 72,000
Cost that would be considered in the calculation of manufacturing overhead total:
149,000, 171,000, 186,000, 442,000

5. Broncos company revealed the following info:
Raw Material used: 60,000
Direct labor: 125,000
Manufacturing overhead: 360,000
Work in process inventory 1/1: 50,000
Finished goods inventory: 140,000
Broncos cost of good manufactured is:
519,000, 522,000, 568,000, 571,000 or some other amount

6. Which of the following is the correct method to calculate a predetermined overhead rate?
Budgeted total manufacturing cost, budgeted amount of cost driver
Budgeted overhead cost, budgeted amount of cost driver
Budgeted amount of cost driver, budgeted overhead cost
Actual overhead cost, budgeted amount of cost driver
Actual overehead cost, actual amount of cost driver

7. Huxable charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of machine hours. The following data pertain to the current year:
Budgeted manufacturing overhead 480,000
Actual manufacturing overhead: 440,000
Budgeted machine hours: 20,000
Actual machine hours: 16,000
Overhead applied to production totaled:
352,0000
384,000
550,000
600,000

1. Mahler, In.c applies manufacturing overhead at the rate of $40 p...