Answer the Following Questions Using the Information Below:
for 20X5,Irwin's

question 88

Multiple Choice

Answer the following questions using the information below:
For 20X5,Irwin's Animal Supply Manufacturing uses machine-hours as the only overhead cost-allocation base.The accounting records contain the following information:
$$\begin{array} { l c c } & \text { Estimated } & \text { Actual } \\\text { Manufacturing overhead costs } & \$ 150000 & \$ 180000 \\\text { Machine-hours } & 30000 & 35000\end{array}$$
-Using normal costing,the amount of manufacturing overhead costs allocated to jobs during 20X5 is:

• A)$150 000.
• B)$175 000.
• C)$200 000.
• D)$180 000.

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Definitions:

Productive Resource

An economic term for the inputs used in the production of goods or services in the attempt to make an economic profit.

Inelastic

Describing a situation where the demand or supply for a good or service is not highly sensitive to changes in price.

Loan Interest

The additional amount paid by a borrower to a lender in exchange for the use of borrowed money, often expressed as an annual percentage rate.