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:

Poorest 20 Percent

The segment of the population with the lowest income, representing the bottom quintile in the distribution of income or wealth.

World Income

The total income generated by individuals and entities across the globe.

Per Capita Income

The average income earned per person in a given area in a specified year.