Venus Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct

question 142

Multiple Choice

Venus Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,it estimated the manufacturing overhead rate to be 30% of the direct labor cost.In the month of June,Venus completed Job 13C and its details are as follows: $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 6820 \\\hline \text { Direct labor cost } & \$ 26,000 \\\hline \text { Direct labor hours } & 31 \text { hours } \\\hline \text { Units of product produced } & 200 \\\hline\end{array}$$ What is the total cost incurred for Job 13C?

• A)$34,866
• B)$33,800
• C)$14,620
• D)$40,620

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Definitions:

Employer

An individual or organization that hires and pays for the services of employees in exchange for their labor.

General Journal Entry

A record in the accounting journal that represents a specific financial transaction, detailing the accounts affected and the amounts involved.

Payroll

The total amount of wages, salaries, bonuses, and deductions a business pays to its employees.

FICA-OASDI Payable

The amount owed by an employer or employee for Social Security and Medicare taxes, to be paid to the IRS.