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

question 127

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 predetermined overhead rate is closest to:

• A) $1.80 per direct labor-hour
• B) $5.50 per direct labor-hour
• C) $9.20 per direct labor-hour
• D) $3.70 per direct labor-hour

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Definitions:

Acute

Refers to conditions or diseases that occur suddenly and often severely, demanding immediate attention, but typically are short-lived.

Chronic

Describing a condition or disease persisting for a long time or constantly recurring, often referring to disorders or illnesses.

Usual Duties

The normal or routine tasks and responsibilities associated with a particular role or position.

Job Fear

Anxiety or distress related to aspects of one’s employment, including fear of losing the job or failing at tasks.