Midtown,Inc

question 165

Multiple Choice

Midtown,Inc.uses a predetermined overhead allocation rate of $67 per direct labor hour.In January,the company completed Job A23 which utilized 24 direct labor hours.Which of the following correctly describes the journal entry to allocate overhead to the job?

• A)debit Finished Goods Inventory $1608 and credit Manufacturing Overhead $1608
• B)debit Manufacturing Overhead $67 and credit Work-in-Process Inventory $67
• C)debit Work-in-Process Inventory $1608 and credit Manufacturing Overhead $1608
• D)debit Cost of Goods Sold $67 and credit Finished Goods Inventory $67

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Definitions:

Regulatory Commissions

Official bodies or organizations responsible for the control and supervision of specific industries or fields, ensuring compliance with laws and regulations.

Rate Increase

An adjustment in the price or cost of a service or product, typically an upward revision, by a company or a regulatory body.

Pricing Constraint

Factors that limit the flexibility in setting prices for products or services, including costs, competition, market demand, and regulatory requirements.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of the operation grows.