Use the Information Below to Answer the Following Question(s)

question 101

Multiple Choice

Use the information below to answer the following question(s) .
Jim's Computer Products manufactures keyboards for computers. In June, the two production departments had budgeted allocation bases of 10,000 machine hours in Department 1 and 5,000 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $34,500 and $37,500, respectively. For Job 501, the actual costs incurred in the two departments were as follows:
Job 501 incurred 1,000 machine hours in Department 1 and 300 manufacturing labour hours in Department 2. The company uses a budgeted departmental overhead rate for applying overhead to production.
-XYZ Company uses a normal job costing system. The direct labour rate is $27 per hour; and, the budgeted indirect cost allocation rate is $20 and uses direct labour hours as the cost allocation base. What amount should be added to work-in-process control?

• A) $12,000
• B) $47,000
• C) $59,000
• D) $76,000
• E) $85,000

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Definitions:

Problem

An obstacle, discrepancy, or challenge that requires a solution or resolution through analytical thinking, creativity, or decision-making processes.

Communication Process

The procedure through which information is exchanged between senders and receivers, involving elements like encoding, medium, decoding, and feedback.

Information Flows

The movement of information within and between different parts of an organization or system.

Formal Channels

Official paths for communication within an organization, typically outlined in its structure and procedures.