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

question 29

Multiple Choice

Beans 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 $162,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 60,000 direct labor-hours. Recently, Job K818 was completed with the following characteristics:

-The predetermined overhead rate is closest to:

• A) $5.50 per direct labor-hour
• B) $8.30 per direct labor-hour
• C) $2.80 per direct labor-hour
• D) $2.70 per direct labor-hour

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Definitions:

Alpha Testing

The initial phase of testing a product, typically performed by internal staff, to identify bugs before it is made available for external testing.

Test Model

A representation or prototype created for the purpose of conducting tests to evaluate a concept, process, or the performance of a product under development.

Glow-in-The-Dark

Describes objects or materials designed to emit light in darkness, often used in safety signs, toys, and decorations.

Concept Testing

The process used to evaluate consumer response to a product idea before it is introduced to the market.