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

question 174

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) $1.80 per direct labor-hour
• B) $5.50 per direct labor-hour
• C) $9.20 per direct labor-hour
• D) $3.70 per direct labor-hour

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Definitions:

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or behaviors).

Post-Trauma Coping

Strategies and mechanisms individuals use to manage and deal with the psychological impact of traumatic events.

Post-Trauma Recovery

The process of healing and regaining a sense of normalcy and well-being after experiencing a traumatic event.

Cognitive Reactions

Mental responses or thoughts that occur in response to a situation or information.