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

question 129

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 amount of manufacturing overhead that would have been applied to all jobs during the period is closest to:

• A) $831,600
• B) $54,000
• C) $774,900
• D) $738,000

---

Definitions:

Organizational

Organizational pertains to the structure and coordination of the activities of a group or entity towards achieving its goals.

Basic Approach

A fundamental strategy or methodology used in a particular field of study or profession, focusing on core principles and techniques.

Personality

A set of emotional, cognitive, and behavioral patterns that are stable over time and across situations, distinguishing one person from another.

Advocates

Individuals or groups that actively support or defend a cause, policy, or individual’s rights.