Sai Company Uses a Job Order Cost System and Applies

question 70

Multiple Choice

Sai Company uses a job order cost system and applies manufacturing overhead costs to jobs using a predetermined overhead rate based on direct labour-hours. The following data were extracted from the company's accounting records for Year 6
$\begin{array}{|l|r|r|}\hline & \text { Estimated } & \text { Actual } \\\hline \begin{array}{l}\text { Manufacturing overhead } \\\text { costs }\end{array} & \$ 50,000 & \$ 54,000 \\\hline \text { Direct labour hours } & 20,000 \text { hours } & 24,000 \text { hours } \\\hline\end{array}$
Job \#461 was completed during the year and the following costs had been incurred on that job:
$\begin{array}{|l|r|}\hline \text { Direct materials: } & \$ 4,000 \\\hline \text { Direct labour: } & \$ 1,500 \text { (at } \$ 5.00 \text { per direct labour hour) } \\\hline\end{array}$

-How much of any underapplied or overapplied overhead would have been due to the fact that the estimated overhead allocation base was different from the actual?

• A) $4,000.
• B) $6,000.
• C) $10,000.
• D) $14,000.

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Definitions:

Standardized Nursing Care Plans

Structured guides used by nurses to provide appropriate care, tailored to the specific needs of patients based on common diagnoses and procedures.

Recommended Lengths of Stay

Typically pertains to the suggested or optimal duration of hospitalization or accommodation in healthcare settings for recovery or treatment.

Protocols

Established sets of rules or procedures to be followed in specific situations, often within a technical, medical, or scientific field.

Plan of Care

A detailed, individualized plan outlining the medical, nursing, or therapeutic services required by a patient to address specific health needs and goals.