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

question 200

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 overhead applied to Job M800 is closest to:

• A) $270
• B) $1,380
• C) $825
• D) $555

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Definitions:

Real GDP

The total value of all goods and services produced by a country adjusted for inflation, providing a more accurate measure of economic output over time.

Intermediate Goods

Products that are used as inputs in the production of other goods or services and are not final products themselves.

GDP

Gross Domestic Product (GDP) measures the total monetary value of all goods and services produced over a specific time period within a country's borders.

Social Security

A government program that provides financial assistance to individuals during retirement, disability, or upon the occurrence of other social risks.