Kalp Corporation Has Two Production Departments, Machining and Finishing

question 260

Multiple Choice

Kalp Corporation has two production departments, Machining and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Machining 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 K928. The following data were recorded for this job:

-The amount of overhead applied in the Machining Department to Job K928 is closest to:

• A) $783.00
• B) $810.00
• C) $162.00
• D) $171,000.00

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Definitions:

Expectancy Theory

A psychological theory that postulates an individual's motivation is an outcome of their expectations about their ability to achieve desired performance levels and the perceived rewards for doing so.

Maslow's Theory

Maslow's Theory, or Maslow's Hierarchy of Needs, is a psychological concept that arranges human needs into a hierarchy, suggesting that people are motivated to fulfill basic needs before moving on to other, more advanced needs.

Organizational Citizenship

The voluntary commitment of employees to go beyond their contractual tasks and contribute positively to the organization's culture and business processes.

Organizational Identification

The psychological connection between an employee and their organization, influencing their sense of belonging and loyalty.