The Following Information Is Provided by Zinger Corporation for the Year

question 82

Multiple Choice

The following information is provided by Zinger Corporation for the year: $\begin{array}{lr}\text { Actual direct labor hours worked } & 75,000 \\\text { Budgeted overhead } & \$ 450,000 \\\text { Budgeted direct labor hours } & 50,000 \\\text { Actual overhead costs incurred } & \$ 550,000\end{array}$ If normal costing is used, the amount of overhead applied for the year is:

• A)$550,000.
• B)$300,000.
• C)$450,000.
• D)$675,000.

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Definitions:

Profit

The financial gain that is derived from the difference between the amount earned from goods sold or services provided and the cost of production or providing these services.

Consolidation Adjustment

A process in financial accounting where adjustments are made to present a group of companies as a single economic entity in consolidated financial statements.

Intragroup Transactions

Transactions that occur between entities within the same group of companies, often for the purpose of internal record-keeping or consolidation purposes.