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

question 243

Multiple Choice

Spang 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 the following data:
Recently, Job P505 was completed with the following characteristics:

-The amount of overhead applied to Job P505 is closest to:

• A) $2,200
• B) $1,760
• C) $2,640
• D) $440

---

Definitions:

Household Worker

An employee who performs domestic services in a private home, such as a nanny, maid, or gardener.

Form 1040

The official form provided by the Internal Revenue Service (IRS) that people use to submit their yearly income tax returns.

Wage Bracket Method

A technique used by employers to determine the amount of federal income tax to withhold from employees' paychecks based on their earnings and filing status.

Withholding Allowances

Allowances claimed on employment forms determining the amount of federal income tax withheld from a paycheck.