Spencer Inc

question 88

Multiple Choice

Spencer Inc.applies overhead to production at a predetermined rate of 80% based on direct labor cost.Job No.130, the only job still in process at the end of August, has been charged with manufacturing overhead of $5,000.What was the amount of direct materials charged to Job 130 assuming the balance in Work in Process inventory is $20,000?

• A)$5,000.
• B)$6,250.
• C)$8,750.
• D)$20,000.

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Definitions:

Kahneman and Tversky

Psychologists known for their work on the psychology of judgment and decision-making, as well as behavioral economics.

Image Theory

A theory in decision-making research which suggests individuals make decisions based on their internal values (principles), plans (projects), and beliefs about potential outcomes (prospects).

Frontal Lobe

The front part of the brain associated with decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.

Phineas Gage

A historically significant case in neuropsychology where an individual survived a traumatic brain injury, providing early evidence of the role of the frontal lobes in personality and behavior.