Answer the Following Questions Using the Information Below

question 139

Multiple Choice

Answer the following questions using the information below:
Gibson Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winfield High School band jacket job.

-What amount of manufacturing overhead costs will be allocated to this job?

• A)$270
• B)$720
• C)$450
• D)$30,000

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Definitions:

Statement Of Cash Flows

A financial document showing how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Revenues And Expenses

Revenues and expenses refer to the income earned from normal business operations and the costs incurred to generate that income, respectively, impacting a company's net income.

Operating Activities

Part of cash flow analysis, these involve the core business activities of a company including production, sales, and delivery of its product or service.

Long-Term Borrowing

Loans or debts obtained with repayment schedules extending over a period longer than one year.