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

question 69

Multiple Choice

Kubes 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 $3.50 per direct labor-hour, and 30,000 direct labor-hours. The company has provided the following data concerning Job A477 which was recently completed:

-The estimated total manufacturing overhead for the Assembly Department is closest to:

• A) $77,600
• B) $101,600
• C) $56,674
• D) $24,000

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, essentially the company's total equity.

Amortization

The gradual repayment or write-off of an asset over a specified period, typically used for loans, mortgages, or intangible assets.

Depreciation Adjustment

An accounting method used to allocate the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Consolidation Purposes

Consolidation purposes involve reasons or objectives behind combining financial statements of multiple entities within a single corporate group, mainly for accurate financial reporting, analysis, and decision-making.