Paul CoIs a Business Using a Normal Costing System and Applying

question 85

Multiple Choice

Paul Co.is a business using a normal costing system and applying overhead cost based on direct labour-hours.For April,total fixed overhead cost was budgeted at $80,000 based on a denominator activity level of 20,000 direct labour-hours for the month.The following data are available for April's activity: What amount of total fixed overhead cost would have been applied to production for the month of April?

• A) $76,000.
• B) $78,000.
• C) $79,500.
• D) $80,000.

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Definitions:

Section 14(a)

Typically refers to a provision in the Securities Exchange Act of 1934 that deals with proxy solicitations.

Sarbanes-Oxley Act

A U.S. law passed in 2002 aimed at protecting investors by improving the accuracy and reliability of corporate disclosures.

Disclosure Controls

Processes and procedures put in place by a company to ensure that all relevant and required information is collected and communicated accurately and timely for financial reporting purposes.

Internal

Existing or happening within an organization, system, or process, rather than involving external factors.