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

question 398

Multiple Choice

Kubes 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 $3.50 per direct labor-hour, and 30,000 direct labor-hours. The company has provided the following data concerning Job A477 which was recently completed: The amount of overhead applied to Job A477 is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $300
• B) $350
• C) $650
• D) $1,000

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Definitions:

Ending Direct Materials

The value of materials available for use at the end of an accounting period after accounting for all usage and purchases.

Direct Materials Purchases

The acquisition of raw materials used directly in the manufacturing of products, considered part of the inventory costs.

Materials Required

The raw materials and components needed for the production of goods.

Financial Budgets

Prospective financial statements that project the revenues, expenses, and cash flows of a business for a future period.