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Jinnah Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $180,000 of direct materials costs and $240,000 of manufacturing overhead. The total manufacturing costs for Job No. 501 is

	A.	$540,000.
	B.	$420,000.
	C.	$660,000.
	D.	$600,000.

In service industries

	A.	the overall objective of ABC is different than in manufacturing industries.
	B.	activity cost pools cannot be identified.
	C.	activities cannot be labeled as value-added or non-value-added.
	D.	a larger proportion of overhead costs are company-wide costs.

Port Accounting performs two types of services, Audit and Tax. Port's overhead costs consist of computer support, $240,000; and legal support, $120,000. Information on the two services is:

Overhead

Overhead	Audit	Tax
Direct Labor Cost	$50,000	$100,000
CPU Minutes	40,000	10,000
Legal Hours Used	200	800

Overhead applied to audit services using traditional costing is

	A.	$240,000.
	B.	$144,000.
	C.	$216,000.
	D.	$120,000.

Austin Accounting Services estimates for next year revenues of $2,000,000, direct labor of $400,000, and overhead of $700,000. Under traditional costing, overhead is applied to audit jobs using the rate of

	A.	56% of direct labor.
	B.	20% of revenues.
	C.	175% of direct labor.
	D.	35% of revenues.

Variable costs for Abbey, Inc. are 25% of sales. Its selling price is $80 per unit. If Abbey sells one unit more than break-even units, how much will profit increase?

	A.	$320
	B.	$20
	C.	$60
	D.	$25

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