For Wilton Company the Predetermined Overhead Rate Is 70% of Direct

question 32

Multiple Choice

For Wilton Company the predetermined overhead rate is 70% of direct labor cost. During the month $720000 of factory labor costs are incurred of which $200000 is indirect labor. Actual overhead incurred was $360000. The amount of overhead debited to Work in Process Inventory should be:

• A) $364000
• B) $360000
• C) $504000
• D) $520000

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Definitions:

Demand-Pull Inflation

A sustained rise in the price level caused by a rightward shift of the aggregate demand curve.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Standard of Living

A level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a geographic area.

Real Prices

Prices that have been adjusted for inflation or deflation, reflecting the purchasing power of money in different time periods.