Using the Single Plantwide Factory Overhead Rate with an Allocation

question 79

Multiple Choice

Using the single plantwide factory overhead rate with an allocation base of direct labor hours,how much factory overhead will Challenger Factory allocate to deluxe widget production if budgeted production for the period is 50,000 units and actual production for the period is 58,000 units?

• A) $391,500
• B) $225,000
• C) $261,000
• D) $337,500

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Definitions:

Statement Of Cash Flows

A report detailing the movements in cash and cash equivalents due to variations in the balance sheet positions and income, segmented by operations, investments, and financing actions.

Investing Activities

Transactions involving the acquisition or disposal of non-current assets, such as property, plant, and equipment or investment securities.

Operating Activities

Activities that relate directly to the principal revenue-generating activities of a business, such as sales and service provision.

Indirect Method

A method used in cash flow statements to adjust net income for non-cash transactions and changes in working capital to arrive at operating cash flow.