The Following Account Balances at the Beginning of January Were

question 14

Multiple Choice

The following account balances at the beginning of January were selected from the general ledger of Fresh Bagel Manufacturing Company: Additional data:
1) Actual manufacturing overhead for January amounted to $65,500.
2) Total direct labor cost for January was $64,000.
3) The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $255,000 of direct labor cost and $382,500 of manufacturing overhead costs.
4) The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $6100 (1700 direct labor hours) and total direct material charges were $15,000.
5) Cost of direct materials placed in production during January totaled $123,900. There were no indirect material requisitions during January.
6) January 31 balance in raw materials inventory was $35,400.
7) Finished goods inventory balance on January 31 was $35,000.
Has manufacturing overhead been overallocated or underallocated and by what amount as of January 31?

• A)$30,500 overallocated
• B)$30,500 underallocated
• C)$15,100 overallocated
• D)$15,100 underallocated

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Definitions:

Mentoring Systems

Structured programs aimed at facilitating personal and professional development through guidance and advice from more experienced individuals.

Life Balance

The ideal equilibrium between personal and professional activities, aiming to ensure well-being, satisfaction, and productivity.

Problem Solver

An individual or tool that identifies solutions to challenges or issues encountered.

HHI

The Herfindahl-Hirschman Index, a measure of market concentration used to evaluate the level of competition within an industry by summing the squares of the market shares of all firms.