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

question 127

Multiple Choice

Gerstein Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $90,000, variable manufacturing overhead of $3.70 per direct labor-hour, and 50,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours.The predetermined overhead rate is closest to:

• A) $1.80 per direct labor-hour
• B) $5.50 per direct labor-hour
• C) $9.20 per direct labor-hour
• D) $3.70 per direct labor-hour

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Definitions:

Non-Retentive Counters

Counting mechanism in automation systems that do not retain their count value in the event of a power loss or system reset.

ACC

In the context of programmable logic controllers, ACC refers to the Accumulator, a register that holds interim arithmetic and logic results.

Time Base

The reference timing signal or scale used in various electronic or digital systems to measure or synchronize the timing of processes or events.