The Work in Process Inventory Account of a Manufacturing Firm

question 36

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:

Group Development

The process through which a group progresses through stages of formation, storming, norming, performing, and adjourning.

Different Stages

Pertains to the various phases or steps within a process or development cycle.

Disjunctive Task

A type of group task that is solved best by the most capable member of the group, where the group's performance is determined by its strongest link.

Group Performance

The level of achievement or productivity of a team or group working together on shared goals.