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Problem 1: Which of the following is the correct method to calculate a predetermined overhead rate? A. Budgeted total manufacturing cost ÷ budgeted amount of cost driver.B. Budgeted overhead cost ÷ budgeted amount of cost driver.C. Budgeted amount of cost driver ÷ budgeted overhead cost.D. Actual overhead cost ÷ budgeted amount of cost driver.E. Actual overhead cost ÷ actual amount of cost driver.
Problem 2: Dixie Company, which applies overhead at the rate of 190% of direct material cost, began work on job no. 101 during June. The job was completed in July and sold during August, having accumulated direct material and labor charges of $27,000 and $15,000, respectively. On the basis of this information, the total overhead applied to job no. 101 amounted to: A. $0.B. $28,500.C. $51,300.D. $70,500.E. $79,800.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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