Venus Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Percentage

question 144

Multiple Choice

Venus Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost. At the beginning of the year, they fixed the manufacturing overhead rate at 20% of the direct labor cost. In the month of June, Venus completed Job 13C the costs of which are as follows: $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 6,220 \\\hline \text { Direct labor cost } & \$ 900 \\\hline \text { Direct labor hours } & 32 \text { hours } \\\hline \text { Units of product produced } & 250 \text { units } \\\hline\end{array}$$ What is the total cost incurred for Job 13C?

• A) $8,364
• B) $6,400
• C) $7,120
• D) $7,300

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Definitions:

Horney

Karen Horney, a psychoanalyst known for her theories on neurosis, personality development, and the concept of "basic anxiety."

Aggressive Personality

Behaviors and attitudes associated with the neurotic trend of moving against people, such as a domineering and controlling manner.

Horney

Karen Horney, a psychoanalyst known for her theories on neurosis, personal growth, and the concept of the "real self."

Neurotic Trends

Patterns of thought, behavior, and emotional response that are significantly maladaptive, causing significant distress or impairment in functioning.