The Work in Process Inventory Account of a Manufacturing Company

question 24

Multiple Choice

The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,400 debit balance after all posting is completed.The cost sheet of the one job still in process shows direct material cost of $2,000 and direct labor cost of $800.Therefore,the company's overhead application rate is:

• A)40%.
• B)50%.
• C)80%.
• D)200%.
• E)220%.

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Definitions:

American Society

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Social Stratification

The hierarchical arrangement of society whereby individuals or groups are ranked according to various criteria like wealth, power, and status.

Upper-upper Class

The most affluent and influential segment of society, often characterized by generational wealth, elite social status, and significant power.

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