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

question 56

Multiple Choice

Levron 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 $58,000, variable manufacturing overhead of $2.00 per machine-hour, and 20,000 machine-hours. The company has provided the following data concerning Job P978 which was recently completed:

-The predetermined overhead rate is closest to:

• A) $2.90 per machine-hour
• B) $2.00 per machine-hour
• C) $4.90 per machine-hour
• D) $6.90 per machine-hour

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Definitions:

Limited Partnership

A partnership structure where at least one partner has unlimited liability (general partner) and the rest have limited liability (limited partners), protecting them from debts beyond their investment.

Certificate of Limited Partnership

A legal document filed with a state by the general partners of a limited partnership that details the partnership's structure and operations.

Secretary of State

A high-ranking government official responsible for foreign affairs in the United States, or state government affairs in some U.S. states.

Limited Liability

A legal structure that limits the financial responsibility of an entity's owners or shareholders to the amount they have invested, protecting personal assets from business debts.