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

question 208

Multiple Choice

Spang 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 the following data: Recently, Job P505 was completed with the following characteristics:
The total job cost for Job P505 is closest to:

• A) $9,400
• B) $9,940
• C) $7,740
• D) $2,740

---

Definitions:

Preferred Shares

A class of stock that provides shareholders with a priority claim on assets and earnings before common stockholders, usually including fixed dividend payments.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Par Value

The nominal or face value of a bond or stock as stated by the issuing company, not necessarily reflecting its market value.

Earnings Per Share

Earnings Per Share (EPS) measures the portion of a company's profit allocated to each outstanding share, indicating a company’s financial performance.