Answer the Following Questions Using the Information Below:
Apple Valley

question 171

Multiple Choice

Answer the following questions using the information below:
Apple Valley Corporation uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are:
$\begin{array}{lll}&\text { Department A }&\text { Department B }\\\text { Direct materials } & \$ 700,000 & \$ 100,000 \\\text { Direct manufacturing labor } & \$ 200,000 & \$ 800,000 \\\text { Manufacturing overhead } & \$ 600,000 & \$ 400,000\end{array}$
$\text { The actual material and labor costs charged to Job \#432 were as follows: }$
$\begin{array}{lr}\text { Direct materials: } & \$ 25,000 \\\text { Direct labor: } & \\\text { Department A } & \$ 8,000 \\\text { Department B } & \$ 12,000 \\& \$ 20,000\end{array}$ Apple Valley applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year.
-For Department A,the manufacturing overhead allocation rate is ________.

• A) 33%
• B) 66%
• C) 300%
• D) 100%

---

Definitions:

Recurring Situations

Situations or events that happen repeatedly over time, often showing a pattern or cycle.

Automatic Responses

Reactions that occur with little to no conscious thought, often resulting from learned behaviors or innate instincts.

Programmed

Refers to something that is set up or prepared in advance according to a plan, often used in the context of computer programming or automated processes.

Nonprogrammed

Decisions or actions that are made in response to novel, unpredictable, or unique situations, requiring customized solutions.