Answer the Following Questions Using the Information Below:
Barnes Corporation

question 61

Multiple Choice

Answer the following questions using the information below:
Barnes Corporation manufactures two models of office chairs,a standard and a deluxe model.The following activity and cost information has been compiled:
$$\begin{array} { l r r r } \text { Product } & \begin{array} { r } \text { Number of } \\\text { Set-ups }\end{array} & \begin{array} { r } \text { Number of } \\\text { Components }\end{array} & \begin{array} { r } \text { Number of } \\\text { Direct Labour Hours }\end{array} \\\hline \text { Standard } & 22 & 8 & 500 \\\text { Deluxe } & 28 & 12 & 300 \\\text { Overhead costs } & \$ 30000 & \$ 60000 &\end{array}$$
-Assume a traditional costing system applies the $90 000 of overhead costs based on direct labour hours.What is the total amount of overhead costs assigned to the standard model?

• A)$24 800
• B)$22 500
• C)$56 250
• D)$35 200

Recognize the blending of documentary and fiction techniques in contemporary filmmaking.

Understand the concepts of process costing and the weighted-average method.

Identify the methods to calculate ending work in process inventory.

Determine the equivalent units for materials and conversion costs.

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Definitions:

Additional Paid-in Capital

The amount of money investors have paid to a company above and beyond the par value of the shares they have purchased.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in any given year, ensuring that dividends must be paid out to preferred stockholders before common stockholders receive any.

Declared Dividend

A portion of a company’s earnings that is approved by the board of directors to be distributed to shareholders on each share of the company's stock.

Common Stock Outstanding

The total number of a company's shares of common stock that are currently owned by investors, including both public and private investors.