Questions -
Q1. Kelson Company applies overhead to jobs on the basis of 60% of direct labor cost. If Job 201 shows $27,000 of manufacturing overhead applied, the direct labor cost on the job was:
a $45,000
b $16,200
c $37,800
d $27,000
Q2. Zumpano Inc. produces and sells a single product. The selling price of the product is $170.00 per unit and its variable cost is $73.10 per unit. The fixed expense is $125,001 per month. The break-even in monthly dollar sales is closest to:
a $125,001
b $211,667
c $219,300
d $290,700