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

question 160

Multiple Choice

Carradine Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours.The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $105,000,variable manufacturing overhead of $3.00 per machine-hour,and 70,000 machine-hours.The company recently completed Job P233 which required 60 machine-hours.The amount of overhead applied to Job P233 is closest to:

• A) $90
• B) $270
• C) $450
• D) $180

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Definitions:

Domestic Corporation

Company that operates in the state where it is incorporated.

Alien Corporation

Firm incorporated in one nation and operating in another nation.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a claim on a portion of the company’s profits through dividends.

Voting Rights

The entitlement of shareholders or citizens to vote in company or public elections, respectively.