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

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Definitions:

Field Observation

A method of collecting research data that involves observing and sometimes interacting with subjects in their real-life environment.

Effectively Teach

The process or method of imparting knowledge, skills, or values in a manner that leads to optimal learning and understanding.

Discipline

Methods or practices used to teach and enforce acceptable patterns of behavior, often within the context of raising children.

Organize

The process of arranging or structuring elements in a systematic way to achieve a desired outcome or order.