Use the Following to Answer Questions

question 3

Multiple Choice

Use the following to answer questions
Jing Company was started on January 1,2016 when it issued common stock for $50,000 cash.Also,on January 1,2016 the company purchased office equipment that cost $34,000 cash.The equipment was delivered under terms FOB shipping point,and transportation cost was $2,000.The equipment had a five-year useful life and a $12,000 expected salvage value.
-At the end of 2020,assuming the equipment had not been sold,the book value of the office equipment using straight-line depreciation and double-declining balance depreciation,respectively,would be:

• A)$12,000/$1,680.
• B)$12,000/$12,000.
• C)$0/$0.
• D)None of these answer choices are correct.

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Definitions:

Plantwide Overhead Rate

A single overhead rate calculated for an entire manufacturing plant, used to allocate overhead costs to products.

Direct Labor Hours

The total hours worked by employees directly involved in the production process, used in calculating cost allocations and efficiency.

Allocation Base

A criterion or measure used for distributing or apportioning costs among various cost objects in a fair, equitable, and rational manner.

Plantwide Overhead Rate Method

A cost accounting method that applies a single overhead rate to all units produced across different departments or processes in a facility.