Enzo Design Corporation Reports the Following Cost Information for March

question 219

Multiple Choice

Enzo Design Corporation reports the following cost information for March: $\begin{array}{|l|r|}\hline \text { Cost of Goods Manufactured } & \$ 75,000 \\\hline \text { Finished Goods Inventory, March 1 } & 4000 \\\hline \text { Finished Goods Inventory, March 31 } & 2650 \\\hline \text { Work-in-Process Inventory, March 1 } & 9670 \\\hline \text { Work-in-Process Inventory, March 31 } & 1000 \\\hline \text { Direct Labor } & 36,000 \\\hline \text { Direct Materials Used } & 16,900\\\hline\end{array}$ What is the amount of manufacturing overhead incurred by the company in March?

• A)$30,330
• B)$138,570
• C)$13,430
• D)$12,430

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Definitions:

Sales Price Variance

The difference between the actual selling price of a product and its budgeted or planned selling price, multiplied by the actual quantity sold.

Opening Stock

The value of goods available for sale at the beginning of an accounting period.

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level, allowing for more accurate forecasting and planning.

Indirect Labour Cost

Expenses related to employees that cannot be directly traced to specific products or services, such as maintenance staff or supervisors.