Kalp Corporation Has Two Production Departments, Machining and Finishing

question 232

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 amount of overhead applied in the Machining Department to Job K928 is closest to:

• A) $783.00
• B) $810.00
• C) $162.00
• D) $171,000.00

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Definitions:

Outermost Shell

The last or farthest layer of an object or entity, often used to describe the external layer of atoms in chemistry or celestial bodies in astronomy.

Neutrons

Subatomic particles found in the nucleus of an atom; they are electrically neutral and along with protons, contribute to the atomic mass.

Ionic Bond

Chemical bond in which ions are attracted to one another by opposite charges.

Transferred

The act of moving or passing something from one place, person, or thing to another.