Simpson Company Applies Overhead on the Basis of 200% of Direct

question 108

Multiple Choice

Simpson Company applies overhead on the basis of 200% of direct labor cost.Job No.305 is increased with $180000 of direct materials costs and $200000 of manufacturing overhead.The total manufacturing costs for Job No.305 is:

• A)$380000
• B)$480000
• C)$560000
• D)$580000

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Definitions:

Numerals

Symbols or characters used to represent numbers.

Adding

The mathematical process of combining two or more quantities to get a total or sum.

Borrowing

The act of receiving something from someone with the intention of returning it or its equivalent later.

Decimals

Numerical symbols used in the decimal system, involving a point that separates the whole number from the fractional part.