During the Month of August, Ross MotorCo Applied Overhead to Jobs

question 127

Multiple Choice

During the month of August, Ross MotorCo applied overhead to jobs using an overhead rate of $0.80 per dollar of direct labor. Direct labor in August was $138,000. Estimated overhead in August was $112,800. Actual overhead was composed of the following items: $$\begin{array} { l r } \text { Indirect materials } & \$ 16,400 \\\text { Indirect labor } & 24,900 \\\text { Utilities } & 24,500 \\\text { Depreciation } & 38,700 \\\text { Repair expense } & 13,500 \\\text { Total } & \$ 118,000\end{array}$$ How much will Ross MotorCo record as a debit to Manufacturing Overhead during the year?

• A) $112,800
• B) $118,000
• C) $110,400
• D) More information is needed to answer

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Definitions:

Future Arrivals

Refers to items, objects, or events that are expected or forecasted to occur or be received at a future date.

Exponentially Distributed

Describes a continuous probability distribution often used in statistics to model time until an event occurs, characterized by its constant rate of decay or growth over time.

Processing Time

The total time required to complete a particular process or task, including waiting times and active working times.

Replications

In experimental design, the repetition of experiments or studies to obtain a broader and more reliable set of data.