(Appendix 2B) Dunnings Woodworking Corporation Produces Fine Cabinets

question 9

Multiple Choice

(Appendix 2B) Dunnings Woodworking Corporation produces fine cabinets. The company uses a job-order costing system in which its predetermined overhead rate is based on capacity. The capacity of the factory is determined by the capacity of its constraint, which is an automated router. Additional information is provided below for the most recent month:

-The manufacturing overhead applied is closest to:

• A) $7,943
• B) $8,000
• C) $5,778
• D) $10,998

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Definitions:

Accounting Firm

A business specialized in providing professional services related to accounting, including auditing, tax preparation, and financial consulting.

Accounting Business

An enterprise that provides financial services such as bookkeeping, tax preparation, and financial auditing to individuals or other businesses.

Business Form

Denotes the legal structure or framework chosen for the operation of a business entity, such as a corporation, partnership, or sole proprietorship.

Course of Business

The routine practices and activities that a business engages in as part of its normal operations.