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:

Technical Excellence

Achieving the highest level of skill or proficiency in a particular area of technology or technical practice.

Competitive Advantage

Competitive advantage refers to the attributes that allow an organization to outperform its competitors by offering greater value to customers or operating more efficiently.

Operational Excellence

The execution of the business strategy more consistently and reliably than the competition, involving continuous improvement in processes and achieving high customer satisfaction.

Competitive Advantage

An attribute or combination of attributes that allows an organization to outperform its competitors, including cost structure, product quality, brand, customer service, or technology.