Valvano Corporation Uses a Job-Order Costing System with a Single

question 399

Multiple Choice

Valvano Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $440,000, variable manufacturing overhead of $2.20 per machine-hour, and 50,000 machine-hours. The estimated total manufacturing overhead is closest to:

• A) $440,000
• B) $110,000
• C) $440,002
• D) $550,000

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Definitions:

Multinational Organization

is a business entity that operates in multiple countries outside of its original or home country, managing production or delivering services in several countries.

Market Price

The current price at which an asset or service can be bought or sold in a particular market, determined by supply and demand dynamics.

Open Pay System

A compensation strategy where an organization openly shares salary ranges and sometimes individual salaries, aiming for transparency.

Pay Compression

Pay compression occurs when there is only a small difference in pay between employees regardless of their skills, experience, or job responsibilities, often resulting in dissatisfaction among more qualified or experienced employees.