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

question 285

Multiple Choice

Branin Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $160,000, variable manufacturing overhead of $3.40 per direct labor-hour, and 80,000 direct labor-hours. The company has provided the following data concerning Job A578 which was recently completed: The amount of overhead applied to Job A578 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $500
• B) $1,350
• C) $2,200
• D) $850

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Definitions:

Joint Control

A situation in an arrangement where two or more parties have agreed to share control over the strategic financial and operating decisions of an activity.

Operating Policies

The rules or guidelines that govern the daily functioning and decision-making processes within an organization.

Significant Influence

The power to participate in the financial and operating policy decisions of the investee, but not control or joint control of those policies.

Depreciation

The systematic allocation of the depreciable amount of an asset over its useful life.