Grisham Products Inc What Is the Projected Applied Manufacturing Overhead Cost for November

question 56

Multiple Choice

Grisham Products Inc.manufactures engines for small scooters.At 30 September,the company had 2500 engines in inventory.The company's policy is to maintain an ending inventory equal to 8 per cent of next month's sales.Each engine manufactured requires 45 minutes of assembly and inspecting time at a cost of $.30 per minute.Grisham applies overhead to engines at a rate of $.15 per direct labour minute.
The company expects the following sales activity for the fourth quarter of the year:
$\begin{array}{ll}\text { October } & 12000 \text { units } \\\text { November } & 20000 \text { units } \\\text { December } & 35000 \text { units }\end{array}$

What is the projected applied manufacturing overhead cost for November?

• A) $153 900
• B) $143 100
• C) $ 42 930
• D) $126 900

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Definitions:

Delivery Duty

A responsibility assigned for the transportation and delivery of goods, ensuring they reach their destination in the agreed-upon condition and timeframe.

Risk of Loss

A legal term that determines which party bears the risk for damage or loss to goods after a transaction has occurred but before the buyer takes possession.

Common Carrier

A business or service that is licensed to transport goods or people and is required to offer its services to the public under equal terms.

Damaged Goods

Damaged goods refer to products that have been harmed or reduced in value before they can be sold to the consumer, often leading to loss for the seller.