Apple Valley Corporation Uses a Job Order Cost System and Has

question 15

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 A,the manufacturing overhead cost driver rate is:

• A)33% of direct labor costs.
• B)66% of direct labor costs.
• C)300% of direct labor costs.
• D)None of the above is correct.

---

Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in the form of cash.

Liability

Financial obligations or debts owed by a company to creditors, typically due in the near or distant future.

Declaration Date

The date on which the board of directors officially approves a dividend.

Earnings Per Share

A profitability measurement that calculates the amount of net income earned per share of stock outstanding.