Sybil Inc Uses a Predetermined Overhead Allocation Rate to Allocate Manufacturing

question 144

Multiple Choice

Sybil Inc. uses a predetermined overhead allocation rate to allocate manufacturing overhead costs to jobs. The company recently completed Job 300X. This job used 12 machine hours and 3 direct labor hours. The predetermined overhead allocation rate is calculated to be $45 per machine hour. What is the amount of manufacturing overhead allocated to Job 300X using machine hours as the allocation base?

• A)$540
• B)$135
• C)$675
• D)$405

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Definitions:

Apparent Authority

A form of authority that an agent seems to have because of actions or representations made by the principal, leading third parties to reasonably believe the agent is authorized.

Contract

A legally binding agreement between two or more parties that creates mutual obligations enforceable by law.

Implied Authority

The power of an agent to act on behalf of a principal, derived from the actions, words, or conduct of the principal rather than from an explicit written or spoken agreement.

Express Authority

Authority explicitly granted by a principal to an agent to perform specific acts or functions on the principal's behalf.