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

question 43

Multiple Choice

Kostelnik 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 $237,000, variable manufacturing overhead of $3.90 per machine-hour, and 30,000 machine-hours. The company has provided the following data concerning Job A496 which was recently completed:

-The total job cost for Job A496 is closest to:

• A) $2,660
• B) $3,104
• C) $3,604
• D) $1,444

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with the right to share in dividends and the right to vote in company affairs.

Fair Value

Fair value is the estimated price at which an asset or liability could be bought or sold in a current transaction between willing parties, other than in a liquidation.

Equity Method

An accounting technique used to record investments in associated companies.

Fixed Assets

Long-term tangible assets used in a company's operations, such as buildings, machinery, and equipment, which are not typically sold in the course of business.