Harrison Company Reports the Following Cost Information for August -
What Is the Amount of Manufacturing Overhead Incurred by \text

question 66

Multiple Choice

Harrison Company reports the following cost information for August:
$\begin{array}{|r|r|}\hline \text { Cost of goods manufactured } & \$ 135,800 \\\hline \text { Direct materials used } & 25,300 \\\hline \text { Work in process inventory, Aug. 1 } & 22,500 \\\hline \text { Work in process inventory, Aug. 31 } & 18,500 \\\hline \text { Direct labor incurred } & 63,900 \\\hline\end{array}$
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What is the amount of manufacturing overhead incurred by Harrison Company in August?

• A) $25,300
• B) $61,944
• C) $42,600
• D) $63,900

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Definitions:

Straight-line Depreciation

A method of allocating an asset's cost evenly across its useful life.

Per-unit Cost

The cost incurred to produce, maintain, or sell one unit of a product or service, calculated by dividing total costs by the number of units.

Mixed Cost

A cost that contains both variable and fixed cost elements, making its total expense vary with activity level but not in direct proportion.

Maintenance Costs

Expenses associated with the upkeep of buildings, equipment, machinery, or vehicles to ensure proper functionality and efficiency.