Jinnah Company Applies Overhead on the Basis of 200% of Direct

question 204

Multiple Choice

Jinnah Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $240000 of direct materials costs and $320000 of manufacturing overhead. The total manufacturing costs for Job No. 501 is

• A) $560000.
• B) $880000.
• C) $720000.
• D) $800000.

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Definitions:

Injunction

A court order requiring a party to do or to refrain from doing specific acts.

Laches

An equitable doctrine that bars a party’s right to legal action if the party has neglected for an unreasonable length of time to act on his or her rights.

Common Law

A legal system characterized by judicial decisions that are cited as precedent in future cases, originating in England and used in many countries.

Statutory Law

Laws established by enacting statutes or legislation by the government.