Denver Company Uses a Job Costing System

question 259

Multiple Choice

Denver Company uses a job costing system.The work in process inventory on December 31 consisted of Job No.173 with a balance of $66,200.Job No.173 has been charged with manufacturing overhead costs of $20,000.Denver allocates manufacturing overhead costs at a rate of 50% of direct labor cost.
What was the amount of direct materials charged to Job No.173?

• A)$10,000
• B)$33,100
• C)$6,200
• D)$46,200

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Definitions:

Cost-push Inflation

A type of inflation caused by an increase in the cost of production inputs, leading to a decrease in aggregate supply in the economy.

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The cost per barrel of crude oil, influenced by global supply and demand dynamics, geopolitical events, and market speculation.

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A severe worldwide economic crisis that took place during the 1930s, marked by high unemployment, falling prices, and failed businesses, leading to widespread poverty.