During the Month of August, Ross MotorCo Applied Overhead to Jobs

question 54

Multiple Choice

During the month of August, Ross MotorCo applied overhead to jobs using an overhead rate of $0.80 per dollar of direct labor.Direct labor incurred in August was $138,000.Estimated overhead in August was $112,800.Actual overhead was composed of the following items: $$\begin{array} { l r } \text { Indirect materials } & \$ 16,400 \\\text { Indirect labor } & 24,900 \\\text { Utilities } & 24,500 \\\text { Depreciation } & 38,700 \\\text { Repair expense } & 13,500 \\\text { Total } & \$ 118,000 \\\hline\end{array}$$ How much will be recorded as a debit to Work in Process for overhead during the year for Ross MotorCo?

• A)$112,800
• B)$118,000
• C)$110,400
• D)More information is needed to answer

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Definitions:

Bargaining Power

The relative ability of parties in a negotiation, such as employers and employees, to influence the outcome in their favor.

Going Out on Strike

The act of workers stopping work as a form of protest, typically to secure better wages, working conditions, or other employment terms.

Employer

An individual or organization that hires and pays employees for their labor or services.

Decentralized Bargaining

A negotiation process where bargaining occurs at the local or unit level rather than centrally, allowing for agreements tailored to specific contexts.