The Work in Process Inventory Account of a Manufacturing Company

question 41

Multiple Choice

The Work in Process inventory account of a manufacturing company shows a balance of $2,400 at the end of an accounting period.The job cost sheets of two uncompleted jobs show charges of $400 and $200 for direct materials and charges of $300 and $500 for direct labour.From this information,what predetermined overhead rate,as a percentage of direct labour costs,does the company appear to be using?

• A) 80%.
• B) 125%.
• C) 240%.
• D) 300%.

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Definitions:

Commercial Software

Software developed and sold for profit, typically requiring the purchase of a license for use.

Embedded Software

Computer software that is designed to operate within a specific hardware device or system, often with real-time computing constraints.

Motion Sensors

Devices that detect moving objects, particularly people, often used in security systems, lighting control, and automation.

Backup Camera

An automotive safety feature that uses a video camera mounted on the rear of the vehicle to display a view behind the car on a dashboard screen, helping the driver to reverse more safely.