The Milo Company's Records for May Contain the Following Information

question 90

Multiple Choice

The Milo Company's records for May contain the following information:
$\begin{array}{|l|r|}\hline \text { Actual direct labour hours } & 9,000 \text { hours } \\\hline \text { Actual direct labour cost } & \$ 47,000 \\\hline \text { Direct material purchased } & \$ 16,000 \\\hline \text { Direct material used } & \$ 14,000 \\\hline \text { Cost of goods sold } & \$ 100,000 \\\hline \text { Overapplied overhead } & \$ 5,000 \\\hline\end{array}$
Ending inventories:
$\begin{array}{|l|r|}\hline \text { Raw materials } & \$ 30,000 \\\hline \text { Work in process } & 50,000 \\\hline \text { Finished goods } & 70,000 \\\hline\end{array}$
The company uses a predetermined overhead rate of $\$ 5.00$ per direct labour hour to apply manufacturing overhead to jobs.
-What was the actual overhead cost incurred during the month?

• A) $50,000.
• B) $55,000.
• C) $40,000.
• D) $45,000.

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Definitions:

Entitativity

The perception of a group as a single, cohesive entity, regardless of the actual level of coherence or unity among its members.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together, showing the strength and direction of a relationship between them.

Correlation

Is a statistical measure that indicates the extent to which two or more variables fluctuate together, showing the strength and direction of their relationship.

Cognitive Theorist

An expert or scholar who studies the mental processes involved in acquiring knowledge and understanding, including thought, experience, and the senses.