Chilson Company Manufactures Custom Engines for Use in the Lawn

question 196

Multiple Choice

Chilson Company manufactures custom engines for use in the lawn and garden equipment industry.The company allocates manufacturing overhead based on machine hours.Selected data for costs incurred for Job 612 are as follows: $$\begin{array} { | l | r r | } \hline \text { Direct materials used } & \$ & 3,500 \\\hline \text { Direct labor hours warked } & & 300 \\\hline \text { Machine hours used } & & 400 \\\hline \text { Direct labor rate per hour } & \$ & 16 \\\hline \text { Predetermined overhead rate based an machine hours } & \$ & 18 \\\hline\end{array}$$ What amount of manufacturing overhead would be allocated to Job 612?

• A)$7,200
• B)$4,800
• C)$5,400
• D)$3,500

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Definitions:

Consideration

In contract law, this refers to something of value exchanged between parties as part of an agreement.

Enforceable

Describes a legal agreement or obligation that can be upheld or compelled through legal processes.

Offeree

The person or entity to whom an offer is made, which can be accepted, resulting in a binding contract.

Consideration

In contract law, consideration refers to something of value that is exchanged between parties as part of an agreement.