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

question 118

Multiple Choice

Gerstein 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 $90,000, variable manufacturing overhead of $3.70 per direct labor-hour, and 50,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours. The estimated total manufacturing overhead is closest to:

• A) $90,000
• B) $275,000
• C) $185,000
• D) $90,004

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Definitions:

Placebo

A substance with no therapeutic effect, used as a control in testing new drugs, or used to stimulate a patient's psychological healing process.

StdDev

Standard Deviation, a measure of the amount of variation or dispersion in a set of values.

Median

The central number in a series that divides the upper half from the bottom half.

StdDev

A rephrased term for standard deviation, indicating the degree to which individual data points in a set diverge from the mean value.