Hickingbottom Corporation Has Two Production Departments, Forming and Finishing

question 172

Multiple Choice

Hickingbottom Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:
During the current month the company started and finished Job M381. The following data were recorded for this job:

-The total job cost for Job M381 is closest to:

• A) $2,206
• B) $616
• C) $4,076
• D) $1,870

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Definitions:

Relatedness

The need to interact, be connected to, and experience caring for others, considered a fundamental psychological need.

Homeostasis

The tendency of a biological system to maintain stable internal conditions despite external changes.

Drive-reduction Approach

A theory in psychology that posits motivation arises from the need to reduce drives from physiological states of tension, such as hunger or thirst.

Motivation Approach

The study or practice of understanding the processes that activate, guide, and maintain goal-oriented behaviors.