Cosi Company Uses a Job Order Costing System and Allocates

question 11

Multiple Choice

Cosi Company uses a job order costing system and allocates its overhead on the basis of direct labor costs.Cosi expects to incur $800,000 of overhead during the next period,and expects to use 50,000 labor hours at a cost of $10.00 per hour.What is Cosi Company's overhead application rate?

• A)6.25%.
• B)62.5%.
• C)160%.
• D)1600%.
• E)67%.

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Definitions:

Sensorimotor Stage

In Piaget’s theory, the stage (from birth to nearly 2 years of age) during which infants know the world mostly in terms of their sensory impressions and motor activities.

Piaget

A Swiss psychologist renowned for his pioneering work in child development and his theory of cognitive development which describes how children construct a mental model of the world.

Concrete Operational

Pertains to a stage in Piaget's theory of cognitive development, where children gain the ability to think logically about concrete events.

Formal Operational

The stage of cognitive development in which people start to think logically about abstract concepts.