The Work in Process Inventory Account of a Manufacturing Company

question 101

Multiple Choice

The Work in Process inventory account of a manufacturing company shows a balance of $2,400 at the end of an accounting period. The job cost sheets of the two uncompleted jobs show charges of $400 and $200 for direct materials, and charges of $300 and $500 for direct labour. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labour costs, of:

• A)80%.
• B)125%.
• C)300%.
• D)240%.

---

Definitions:

Separate Households

Two or more living units for different members of the same family, rather than living together under one roof.

Emotional Needs

Fundamental feelings or conditions essential for psychological well-being and happiness.

Marital Therapy

A form of psychotherapy aimed at addressing and improving relationships and communication between married partners.

Difficulties

Challenges or obstacles that make tasks or situations hard to deal with.