-Grib Corporation Uses a Predetermined Overhead Rate Based on Direct

question 117

Multiple Choice

-Grib Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs.The predetermined overhead rates for the year are 200% of direct labor cost for Department A and 50% of direct labor cost for Department B.Job 436,started and completed during the year,was charged with the following costs:
The total manufacturing cost assigned to Job 436 was:

• A) $360,000
• B) $390,000
• C) $270,000
• D) $480,000

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Definitions:

Short-Run Total Cost Function

A mathematical representation of the total cost involved in the production of goods or services, considering all expenses over the short term.

Variable Factor

An input in the production process that changes in quantity as the level of production changes.

Quasi-Fixed Costs

Costs that are not completely variable but do change with the level of output or activity over certain ranges or periods of time.

Production Function

A mathematical model that describes the relationship between input resources and the maximum output that can be produced with those resources.