Worrell Corporation Has a Job-Order Costing System Worrell Applies Overhead at a Predetermined Rate of 90% of Work

question 5

Multiple Choice

Worrell Corporation has a job-order costing system. appeared in the Work in Process account for the month of March: $$\begin{array} { | l | c | } \hline \text { March 1, balance } & \$ 12,000 \\\hline \text { March 31, direct materials } & 40,000 \\\hline \text { March 31, direct labour } & 30,000 \\\hline \text { March 31, manufacturing overhead applied } & 27,000 \\\hline \text { March 31, to finished goods } & ( 100,000 ) \\\hline\end{array}$$ Worrell applies overhead at a predetermined rate of 90% of direct labour cost. Job No.
232, the only job still in process at the end of March, has been charged with manufacturing overhead of $2,250. What was the amount of direct materials charged to Job No. 232?

• A)$9,000.
• B)$4,250.
• C)$2,250.
• D)$2,500.

---

Definitions:

Monthly Deposits

Regular payments or investments made into a particular account or scheme every month.

Investment

The action or process of investing money for profit or material result.

Compounded Semi-Annually

An interest calculation method where interest is added to the principal balance twice a year, leading to more interest accrued over time than if compounded once a year.

Monthly Payments

These are payments made once a month, as in a loan or lease, towards reducing the outstanding balance owed.