Mars Supplies Company Provided the Following Information for the Year

question 90

Multiple Choice

Mars Supplies Company provided the following information for the year: $$\begin{array} { | l | r | } \hline \text { Beginning Balance - Work-in-Process Inventory } & \$ 24,000 \\\hline \text { Ending Balance - Work-in-Process Inventory } & 58,000 \\\hline \text { Beginning Balance - Direct Materials Inventory } & 85,000 \\\hline \text { Ending Balance - Direct Materials Inventory } & 61,000 \\\hline \text { Purchases - Direct Materials } & 359,000 \\\hline \text { Direct Labor } & 470,000 \\\hline \text { Indirect Labor } & 21,000 \\\hline \text { Depreciation on Factory Plant and Equipment } & 24,000 \\\hline \text { Plant Utilities and Insurance } & 268,000 \\\hline\end{array}$$ What was the amount of the manufacturing overhead costs?

• A) $313,000
• B) $45,000
• C) $292,000
• D) $491,000

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Definitions:

Pricing Constraints

Factors that limit the range of prices a firm may set.

Corporate Goals

The strategic objectives that a company aims to achieve, which guide its business operations and decision-making processes.

Product Obsolescence

Occurs when a product becomes outdated or no longer useful due to technological advancements, changes in consumer preferences, or market conditions.

Social Responsibility

The concept that businesses should not only focus on maximizing profits but also consider their impact on society and the environment.