Kings Company Had the Following Information: Assume the Cost

question 16

Multiple Choice

Kings Company had the following information: Assume the cost driver for factory overhead costs is direct labor hours and a job uses 2,000 direct labor hours.What amount of factory overhead is applied to the job?

• A)$7,140
• B)$7,500
• C)$7,600
• D)$8,000

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Definitions:

Standard Deduction

A fixed amount deducted from income before income tax is calculated, available to all taxpayers who do not itemize their deductions.

Married Couple

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A category that defines the type of tax return form an individual or entity will use, based on marital status and other factors.

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A person's entire income before adjustments, reduced by certain allowable deductions, to calculate the income subject to tax.