Reference: 03-06
the Milo Company's Records for May Contained the Following

question 78

Multiple Choice

Reference: 03-06
The Milo Company's records for May contained the following information: $$\begin{array} { | l | l | l | } \hline \text { Actual direct labour-hours } & 9,000 & \text { hours } \\\hline \text { Actual direct labour cost } & \$ 47,000 & \\\hline \text { Direct material purchased } & 16,000 & \\\hline \text { Direct material used } & 14,000 & \\\hline \text { Cost of goods sold } & 100,000 & \\\hline \text { Overapplied overhead } & 5,000 & \\\hline \text { Ending inventories: } & & \\\hline \text { Raw materials } & 30,000 & \\\hline \text { Work in process } & 50,000 & \\\hline \text { Finished goods } & 70,000 & \\\hline\end{array}$$ The company uses a predetermined overhead rate of $5.00 per direct labour hour to apply manufacturing overhead to jobs.
-The actual overhead cost incurred during the month was:

• A)$40,000.
• B)$50,000.
• C)$55,000.
• D)$45,000.

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Definitions:

Detritus

Partially decomposed organic matter, often found in natural environments, serving as a nutrient source for some organisms.

Decaying Organic Matter

Organic material breaking down through the process of decomposition, typically by microbial action.

Ecosystem

A community of living organisms in conjunction with the nonliving components of their environment, interacting as a system.