Wunder Builders Estimates the Following Overhead Costs for 2017 $\text { Wunder Builders incurred the following costs for } 2017 \text { for job } 23 \text { : }$

question 32

Multiple Choice

Wunder Builders estimates the following overhead costs for 2017: $\begin{array}{lr}\text { Equipment depreciation } & \$ 30,000 \\\text { Equipment maintenance } & 64,000 \\\text { Factory management salaries } & 150,000 \\\text { Factory rent } & 50,000 \\\text { Total manufacturing overhead } & \$ 294,000\end{array}$
$\text { Wunder Builders incurred the following costs for } 2017 \text { for job } 23 \text { : }$
$\begin{array}{ll}\text { Direct material } & \$ 80,000 \\\text { Direct labor } & \$ 60,000\end{array}$ Wunder applies manufacturing overhead based on direct labor cost.Other jobs incurred $320,000 of direct labor.Wunder Builders budgeted $350,000 in direct labor costs and 20,000 machine hours for 2017.Actual manufacturing overhead for 2017 was $300,000.How much overhead will Wunder Builders apply to job 23?

• A)$168,800
• B)$294,000
• C)$58,800
• D)$50,400

---

Definitions:

Clustering

The method of categorizing a collection of items so that those within the same category are more alike to each other than they are to items in different categories.

Preferred Provider Organization

Preferred Provider Organization (PPO) is a type of health insurance plan that offers a network of healthcare providers, allowing policyholders to receive services at a discounted rate.

Health Maintenance Organization

A type of health insurance plan that typically restricts patients to a network of doctors and hospitals in order to control costs.

Exclusive Provider Organization

A managed care plan where services are covered only if you use doctors, specialists, or hospitals in the plan’s network, except in an emergency.