Boxer Industries Worked on Four Jobs During Its First Year

question 83

Multiple Choice

Boxer Industries worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. A review of job no. 403's cost record revealed direct material charges of $40,000 and total manufacturing costs of $50,000. If Boxer applies overhead at 150% of direct labor cost, the overhead applied to job no. 403 must have been:

• A) $0.
• B) $6,000.
• C) $4,000.
• D) $3,333.
• E) $5,000.

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Definitions:

Felsic Composition

Rocks characterized by a high content of light-colored minerals such as quartz, feldspar, and mica, generally associated with continental crust.

Viscous

A physical property indicating a fluid's resistance to flow; highly viscous substances move slowly.

Gas Bubbles

Cavities filled with gas trapped within a solid material, often found in cooling lava.

Magma Rise

The upward movement of molten rock or magma from the Earth's mantle towards the crust, often leading to volcanic activity.