Venus Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct

question 171

Multiple Choice

Venus Manufacturing uses a predetermined overhead allocation rate based on direct labor cost. At the beginning of the year, it estimated the manufacturing overhead rate to be 30% of the direct labor cost. In the month of June, Venus completed Job 13C and its details are as follows: $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 6820 \\\hline \text { Direct labor cost } & \$ 26,000 \\\hline \text { Direct labor hours } & 31 \text { hours } \\\hline \text { Units of product produced } & 200 \\\hline\end{array}$$ What is the total cost incurred for Job 13C?

• A) $34,866
• B) $33,800
• C) $14,620
• D) $40,620

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Definitions:

Unobtrusive Measure

Research methods that do not involve direct interaction with the participants, minimizing the influence of the measurement process on the results.

Convergent Validity

The extent to which two measurements of constructs, which are expected to have a theoretical correlation, actually do exhibit a relationship.

Reactivity

The alteration of the behavior of study participants due to their awareness of being observed.

Interval Scale

A type of scale used in measurements that expresses the order of variables and also establishes a defined distance between variables, but lacks a true zero point.