Jackson Inc Assuming Jackson Inc

question 82

Multiple Choice

Jackson Inc. listed the following data for 2019: $\begin{array}{lr}\text { Budgeted factory overhead } & \$ 1,271,000 \\\text { Budgeted direct labor hours } & 82,000 \\\text { Budgeted machine hours } & 41,000 \\\text { Actual factory overhead } & 1,201,000 \\\text { Actual direct labor hours } & 86,300 \\\text { Actual machine hours } & 39,400\end{array}$ Assuming Jackson Inc.applied overhead based on direct labor hours, the firm's predetermined overhead rate for 2019 is:(round calculations to 2 significant digits) :

• A)$14.20 per direct labor hour.
• B)$14.38 per direct labor hour.
• C)$15.24 per direct labor hour.
• D)$15.50 per direct labor hour.
• E)$15.85 per direct labor hour.

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Definitions:

Ending Inventory

The ultimate worth of merchandise up for sale at the termination of a fiscal period.

Overstated

A situation where the reported value or figures are higher than the true or accurate value, often unintentionally.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials and labor.

Average Number

A value found by adding all numbers in a set together and then dividing by the quantity of numbers in that set.