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

question 46

Multiple Choice

The Work-in-Process Inventory account of a manufacturing firm has a balance of $2,400 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $400 and $200 for materials used, and charges of $300 and $500 for direct labor used. Overhead is applied as a percentage of direct labor costs. The predetermined rate is:

• A) 41.7%.
• B) 80.0%.
• C) 125.0%.
• D) 240.0%.

Understand the concept and graphical representation of a budget constraint and how income changes affect it.

Grasp the meaning and implications of the slope of the budget constraint.

Comprehend the properties and graphical characteristics of indifference curves.

Learn the relationship between the marginal rate of substitution (MRS) and the slope of indifference curves.

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Definitions:

After Tax

Refers to the amount of money or income that remains after all federal, state, and withholding taxes have been deducted.

Annual Return

The percentage of change in an investment's value over a one-year period, including any dividends or interest earned.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor expenses.

Period Cost

Costs that are not directly tied to the production process and are expensed in the period they are incurred.