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Problem 1: Which of the following is an example of a predetermined overhead rate?
A. Estimated manufacturing overhead divided by estimated units producedB. Actual units produced divided by estimated manufacturing overheadC. Estimated direct labor dollars divided by estimated manufacturing overheadD. Estimated manufacturing overhead divided by actual direct labor hours
Problem 2: The reason for lumping direct labor and manufacturing overhead costs together and calling them "conversion costs" is that
A. the costs for direct labor and overhead are not accounted for separately.B. the equivalent unit amount for materials will be the same as that for direct labor and manufacturing overhead costs.C. they both are direct costs of production.D. both types of costs usually are incurred uniformly throughout the production proces
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