The Accounting Records of Omar Corporation Contained the Following Information

question 17

Multiple Choice

The accounting records of Omar Corporation contained the following information for last year: If Omar Corporation applies overhead to jobs on the basis of direct labor-hours and Job 3 took 120 hours, how much overhead should be applied to that job?

• A) $960
• B) $360
• C) $528
• D) $288

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health.

Financial Data

Financial data encompasses quantitative information about a business's financial position, performance, and cash flows, typically found in financial statements.

Sales On Account

Transactions where revenue is recorded when a sale is made but the cash is collected at a later date.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by dividing current assets by current liabilities.