During 2017 Tanner Manufacturing Expected Job No

question 116

Multiple Choice

During 2017 Tanner Manufacturing expected Job No. 26 to cost $300000 of overhead $500000 of materials and $200000 in labor. Tanner applied overhead based on direct labor cost. Actual production required an overhead cost of $290000 $550000 in materials used and $220000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?

• A) $1000000
• B) $1060000
• C) $1070000
• D) $1100000

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Definitions:

Assignment of Rights

The transfer of rights or interests in a contract or property from one party to another.

Breach of Contract

An act of failing to fulfill the terms and conditions as agreed upon in a contract, leading to legal action for redress.

Agent

One who acts under the direction of a principal for the principal’s benefit in a legal relationship known as agency. See also principal.

Gratuitous Assignment

A transfer of rights or property done freely without the expectation of receiving something in return.