Barbeau Corporation Has Two Production Departments, Milling and Customizing

question 254

Multiple Choice

Barbeau Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing 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 A492. The following data were recorded for this job:

-The amount of overhead applied in the Milling Department to Job A492 is closest to:

• A) $146,200.00
• B) $144.00
• C) $756.00
• D) $774.00

---

Definitions:

Ethical Problems

Issues or situations that require a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

Ethical Decisions

Choices made based on moral principles and values.

Objective Standards

Criteria or benchmarks that are based on facts and are impartial, allowing for consistent and unbiased assessment or decision-making.

Subjective Impacts

Effects or consequences that are based on or influenced by personal feelings, tastes, or opinions rather than external facts.