Beat Corporation Uses a Job-Order Costing System with a Single

question 311

Multiple Choice

Beat Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Recently, Job M759 was completed. It required 60 machine-hours. The amount of overhead applied to Job M759 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $750
• B) $516
• C) $984
• D) $234

Understand the computation and significance of the acid-test (quick) ratio.

Calculate and interpret accounts receivable turnover.

Understand the calculation of average sale and collection periods.

Calculate and differentiate between various liquidity and efficiency ratios.

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Definitions:

Cylinder Leakage Test

A test performed on a suspect cylinder to determine where the pressure is going. The cylinder leak detector uses the shop air supply and a regulator to pressurize the cylinder, and the rate of leakage is displayed on the gauge.

Throttle Body

A component of the air intake system that controls the amount of air flowing into an engine's combustion chamber.

Burned Intake Valve

A valve in the engine that has been damaged by excessive heat, leading to loss of efficiency or engine failure.

Power Balance Test

A test used to determine if each cylinder is contributing power to overall engine output. During the test, fuel injectors are disabled and the change in engine rpm is recorded. If a cylinder is not producing power, there will not be an rpm drop when that cylinder’s injector is disabled, alerting you to the problem cylinder.