Preston Manufacturing Is Working on Two Housing Projects

question 77

Multiple Choice

Preston Manufacturing is working on two housing projects.Overhead is applied on the basis of direct labor hours.At the beginning of the year,the company estimated that overhead would be $64,000 and 10,000 direct labor hours would be worked.Both projects were started and completed in the current accounting period.The following transactions were completed during the period: (a) Used $10,000 of direct material on Project I and $6,800 of direct material on Project II.
(b) Labor costs for the two jobs amounted to the following: Project I,$24,000 (2,000 hours) ;Project II,$44,000 (6,000 hours) .
(c) Project II was sold during the period for $120,000.
The amount of estimated overhead applied to work in process inventoryWork in Process Inventory for the period equals: (Do not round your intermediate calculation. ) :

• A) $51,200.
• B) $64,000.
• C) $54,400.
• D) $44,000.

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Definitions:

Telephone Interview

A method of conducting a job interview or survey over the phone to assess the qualifications or opinions of the interviewee.

Employment Interviews

Formal meetings between a job applicant and a potential employer to assess the applicant's suitability for a position.

Question-and-answer Phase

A period during which inquiries are made and responses are given, often in a formal setting like an interview or presentation.

Employment Interviews

Formal meetings between a job applicant and an employer to assess the applicant's suitability for a position.