Apple Valley Corporation Uses a Job Order Cost System and Has

question 21

Multiple Choice

Apple Valley Corporation uses a job order cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are:
The actual material and labor costs charged to Job #432 are as follows: Apple Valley applies manufacturing overhead costs to jobs on the basis of direct labor cost using departmental rates determined at the beginning of the year.
-For Department B,the manufacturing overhead cost driver rate is:

• A)50% of direct labor costs.
• B)80% of direct labor costs.
• C)100% of direct labor costs.
• D)200% of direct labor costs.

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Definitions:

Mutually Exclusive Projects

Investment opportunities in which the acceptance of one project requires the rejection of another due to limited resources or conflicting outcomes.

Incorrect Decisions

Choices or judgments that lead to unfavorable outcomes or fail to achieve desired objectives, often due to poor information or analysis.

NPV

Net Present Value, a calculation that compares the present value of a project or investment's cash inflows with its cash outflows.

IRR

Internal Rate of Return; a metric used in capital budgeting to estimate the profitability of potential investments.