Warren Company Applies Overhead Based on Direct Labor Cost

question 2

Multiple Choice

Warren Company applies overhead based on direct labor cost.Warren Company estimated that it would incur $180,000 in manufacturing overhead costs and $120,000 of direct labor costs during the current year.Actual manufacturing overhead cost totaled $150,000 and actual direct labor costs totaled $110,000 during the current year.If total manufacturing costs were $320,000,what amount of direct materials was used during the year?

• A) $60,000
• B) $30,000
• C) $45,000
• D) None of these.

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Definitions:

Parasympathetic Nervous System

Part of the autonomic nervous system that helps the body conserve energy and promotes relaxation and digestion.

Somatic Nervous System

A component of the peripheral nervous system that controls voluntary movements of the body's muscles.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, which integrates information received from the body and coordinates activity.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, influencing attention, heart rate, and blood pressure.