Myrna's Manufacturing Calculated Its Predetermined Overhead Rate to Be 200

question 52

Multiple Choice

Myrna's Manufacturing calculated its predetermined overhead rate to be 200% of direct materials costs.For the month of July, the company incurred $120,000 of raw material costs, of which $90,000 were direct materials, and $30,000 were indirect materials.Actual overhead incurred was $175,000.What would be the debit entry to the Work in Process Inventory account for July with respect to manufacturing overhead?

• A)$175,000
• B)$180,000
• C)$240,000
• D)$zero, the account should be credited

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Definitions:

T Procedures

Statistical methods based on the t-distribution, used for hypothesis testing and confidence interval estimation, mainly when sample sizes are small.

Sample Size

The number of observations or data points collected in a sample from a larger population, used in statistical analysis.

Matched-pairs T Procedures

Statistical tests used to compare the means of two related groups or samples to identify if their mean difference is statistically significant.

Subjects

Individuals or entities that participate in a research study or experiment, often used in the context of clinical trials or social sciences.