Venus Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Percentage

question 136

Multiple Choice

Venus Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost. At the beginning of the year, they fixed the manufacturing overhead rate at 20% of the direct labor cost. In the month of June, Venus completed Job 13C the costs of which are as follows: $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 6,220 \\\hline \text { Direct labor cost } & \$ 900 \\\hline \text { Direct labor hours } & 32 \text { hours } \\\hline \text { Units of product produced } & 250 \text { units } \\\hline\end{array}$$ What is the total cost incurred for Job 13C?

• A) $8,364
• B) $6,400
• C) $7,120
• D) $7,300

Understand the concepts and methodologies for preparing a master budget.

Calculate and interpret budgeted sales, cash collections, and accounts receivable balances.

Develop a production budget, including required unit production to meet sales and inventory goals.

Determine budgeted raw materials purchases and related cash disbursements.

---

Definitions:

Navigate

To move through, operate or manage within a digital environment or software.

Datasheet

A grid-like structure in software applications used for organizing and displaying data in rows and columns.

Field Size

The maximum amount of data that can be stored in a particular field in a database or software application.

Data Type

A categorization of data based on the kind of value it contains, such as integer, float, string, or Boolean, influencing how data is stored, transmitted, and manipulated.