Everlast Co

question 118

Multiple Choice

Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed below is cost driver information used in the product-costing system:What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours?

• A)$9,960.
• B)$30,240.
• C)$43,741.
• D)$44,268.
• E)$109,352.

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Definitions:

Accounts Payable

Short-term liabilities representing amounts owed to suppliers or creditors for goods and services received but not yet paid for.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check the accuracy of the entries.

Journal Entry

A record in accounting that represents a transaction, documenting the debit and credits affected by it.

Debit

A bookkeeping record that elevates the value of an asset or expense account, or reduces the value of a liability or equity account.