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

question 35

Multiple Choice

Cull 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 $462,000, variable manufacturing overhead of $2.20 per machine-hour, and 60,000 machine-hours. The company has provided the following data concerning Job X455 which was recently completed: The amount of overhead applied to Job X455 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $176
• B) $792
• C) $968
• D) $616

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Definitions:

Division Of Labor

Breaking down the production of a good into separate tasks

Smaller Tasks

Refers to actionable items or objectives that are components of a larger project or goal.

Specialization Of Labor

The division of labor where different workers or groups of workers engage in specific tasks, often leading to increased productivity.

Productivity

The ratio of a specific measure of output, such as real GDP, to a specific measure of input, such as labor; in this case, productivity measures real GDP per hour of labor.