Gerstein Corporation Uses a Job-Order Costing System with a Single

question 100

Multiple Choice

Gerstein Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $90,000, variable manufacturing overhead of $3.70 per direct labor-hour, and 50,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours.
-The predetermined overhead rate is closest to:

• A) $26.40
• B) $25.14
• C) $23.43
• D) $24.60

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Definitions:

Mistrust

The lack or absence of trust or confidence in someone or something, often based on previous experiences or suspicions.

Mental Disorder

A condition characterized by disturbances in a person's thoughts, emotions, or behavior that reflect a dysfunction in the psychological, biological, or developmental processes.

ADHD

Attention Deficit Hyperactivity Disorder, a neurological disorder characterized by inattention, hyperactivity, and impulsivity.

Ritalin

A stimulant medication used to treat attention deficit hyperactivity disorder (ADHD) and certain sleeping disorders, known chemically as methylphenidate.