Question Content Area Aspen Technologies has the following budget data: Line Item...

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Accounting

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Aspen Technologies has the following budget data:

Line Item Description	Amount
Estimated direct labor hours	9,700
Estimated direct labor dollars	$53,400
Estimated factory overhead costs	$154,900

If factory overhead is to be applied based on direct labor hours, the predetermined factory overhead rate is

a. $12.78

b. $15.97

c. $19.16

d. $23.95

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that tota factory overhead costs would be $331,600 and direct labor hours would be 40,700. Actual manufacturing overhead costs incurred were $313,900, and actual direct labor hours were 54,900. The journal entry to apply the factory overhead costs for the year would include a

a. debit to Factory Overhead for $447,435

b. debit to Factory Overhead for $313,900

c. credit to Factory Overhead for $331,600

d. credit to Factory Overhead for $447,435

Jensen Company reports the following:

Line Item Description	Amount
Direct materials used	$345,000
Direct labor incurred	250,000
Factory overhead incurred	400,000
Operating expenses	175,000

Jensen Companys product costs are

a. $995,000

b. $770,000

c. $920,000

d. $825,000

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