The Work-In-Process Inventory Account of a Manufacturing Firm Shows a Balance

question 126

Multiple Choice

The Work-in-Process Inventory account of a manufacturing firm shows a balance of $3,000 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $500 and $300 for materials, and charges of $400 and $600 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of:

• A) 83%.
• B) 120%.
• C) 40%.
• D) 300%.

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Definitions:

Health-Care System

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Prescription Drugs

Medications that are legally dispensed only with a medical prescription due to their potential side effects, risk for abuse, or necessity for professional supervision.

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A system where all residents of a particular country or region are assured access to health care services, typically funded by the government.

Manitoba

A province in central Canada, known for its prairie landscapes, lakes, and cultural events, including the capital city of Winnipeg.