Use the Following Information for the Next 2 Questions

question 73

Multiple Choice

Use the following information for the next 2 questions. Allen's Accounting Services uses job costing and applies overhead using a normal costing system using professional labor hours as the allocation base. This period's estimated overhead cost is $400,000, estimated professional labor cost is $800,000 and estimated direct labor hours are 8,000. This period actual overhead cost was $426,400, actual direct labor cost was $820,000, and actual direct labor hours were 8,200.
-What is the total cost for Client 58?

• A) $1,300
• B) $1,200
• C) $1,720
• D) $1,700

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Definitions:

Customizing Production

The process of modifying and adapting the manufacturing process to meet specific customer requirements or preferences.

Executive Pay

Compensation awarded to top-level management and executives, including salaries, bonuses, stock options, and other financial rewards.

Public Scrutiny

The examination and critical observation of an individual, company, or process by the general public, often facilitated by media outlets.

Average Workers' Pay

The mean wage earned by employees in a specific job, industry, or region, calculated by dividing total wages by the number of workers.