Bernson Corporation Is Using a Predetermined Overhead Rate That Was

question 279

Multiple Choice

Bernson Corporation is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $492,000 and 30,000 machine-hours for the period. The company incurred actual total fixed manufacturing overhead of $517,000 and 28,300 total machine-hours during the period. The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $464,120
• B) $492,000
• C) $487,703
• D) $25,000

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Definitions:

Direct Labor

Costs associated with the labor directly involved in the production of goods or services.

Job Cost Sheets

Detailed records used in cost accounting to accumulate all costs associated with a specific job or project.

Work In Process

Inventory items that are in the process of being produced but are not yet complete.

Subsidiary Ledger

A detailed ledger containing individual accounts with a common characteristic, linked to a summary account in the general ledger.