Kalp Corporation Has Two Production Departments, Machining and Finishing

question 266

Multiple Choice

Kalp Corporation has two production departments, Machining and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: During the current month the company started and finished Job K928. The following data were recorded for this job:
The estimated total manufacturing overhead for the Machining Department is closest to:

• A) $136,800
• B) $34,200
• C) $171,000
• D) $359,100

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Definitions:

Identifying Risk

The process of finding, recognizing, and describing risks that could affect the outcome of a project or business operation.

Alternative Method

A different approach or technique used to achieve a goal, often considered when traditional methods are ineffective.

Risk Event

A specific occurrence that can affect the outcome of a project either positively or negatively.

Risk Response Plan

A strategy for minimizing the potential impact of identified risks on a project.