Chapter 23, Problem 11BE

Doom Ltd uses predetermined overhead rates based on labor hours. The monthly budgeted overhead is $470,000 and the budgeted labor hours were 20,000. During the month the company worked a total of 70,000 labor hours and actual overheads totaled $230,000. The overhead at the end of the month would therefore be$?

Please provide the accurate answer to this general accounting problem using valid techniques.

Cole Company has sales revenue of $39,000, cost of goods sold of $24,000, and operating expenses of $9,000 for the year ended December 31. Cole's gross profit is: a. $6,000 b. $15,000 c. $30,000 d. $0