Mesa Corp Allocates Overhead to Production on the Basis of Direct

question 148

Multiple Choice

Mesa Corp. allocates overhead to production on the basis of direct labor costs. Mesa's total estimated overhead is $450,000 and estimated direct labor is $180,000. Determine the amount of overhead applied to a job which used $20,000 of direct labor.

• A) $8,000.
• B) $90,000.
• C) $20,000.
• D) $70,000.
• E) $50,000.

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Definitions:

Optimism

A mental attitude reflecting a belief or hope that the outcome of some specific endeavor, or outcomes in general, will be positive, favorable, and desirable.

Longitudinal Study

A research design that involves repeated observations of the same variables (e.g., people) over short or long periods of time to detect patterns, causes, and effects.

Conscientiousness

A personality trait characterized by being thorough, careful, or vigilant; implying a desire to do a task well.

Catastrophizing

Believing that bad events are all-encompassing.