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

question 157

Multiple Choice

Beans 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 $162,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 60,000 direct labor-hours. Recently, Job K818 was completed with the following characteristics: The amount of overhead applied to Job K818 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $135
• B) $140
• C) $415
• D) $275

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Definitions:

Herzberg's Two-Factor Theory

A theory of motivation that suggests there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction.

Alderfer's ERG Theory

A motivational theory that categorizes human needs into three groups: Existence, Relatedness, and Growth, proposing that people can be motivated by needs in more than one group at a time.

Maslow's Hierarchy

A psychological theory positing a five-tier model of human needs, ranging from basic (physiological) needs to higher (self-actualization) needs.

Diminishing Marginal Product

The decrease in the additional output produced when one more unit of input is added, keeping all other inputs constant.