Bates Manufacturing Uses a Job Order Cost System,and Overhead Is

question 35

Multiple Choice

Bates Manufacturing uses a job order cost system,and overhead is applied on the basis of direct labor hours.At the beginning of the period,the company estimated that overhead would be $64,000 and 10,000 direct labor hours would be worked.Two 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 company's gross margin for the period was: (Do not round your intermediate calculation. ) :

• A) $30,800.
• B) $18,000.
• C) $89,200.
• D) $69,200.

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Definitions:

Cognitive Moral Development

A theory proposed by Lawrence Kohlberg that aims to explain the process by which individuals develop their ability to make ethical decisions based on moral reasoning.

Universal Ethical Principles

Fundamental moral guidelines that are believed to be universally applicable and valid, transcending cultural, national, or individual differences.

Utilitarianism

A moral theory that suggests the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Deontology

An ethical theory that emphasizes duty and rules over the outcomes of actions.