Answer the Following Questions Using the Information Below:
Apple Valley

question 115

Multiple Choice

Answer the following questions using the information below:
Apple Valley Corporation uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are:
$\begin{array}{lll}&\text { Department A }&\text { Department B }\\\text { Direct materials } & \$ 700,000 & \$ 100,000 \\\text { Direct manufacturing labor } & \$ 200,000 & \$ 800,000 \\\text { Manufacturing overhead } & \$ 600,000 & \$ 400,000\end{array}$
$\text { The actual material and labor costs charged to Job \#432 were as follows: }$
$\begin{array}{lr}\text { Direct materials: } & \$ 25,000 \\\text { Direct labor: } & \\\text { Department A } & \$ 8,000 \\\text { Department B } & \$ 12,000 \\& \$ 20,000\end{array}$ Apple Valley applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year.
-For Department B,the manufacturing overhead allocation rate is ________.

• A) 50%
• B) 100%
• C) 200%
• D) 300%

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Definitions:

Data Values

Discrete units of information gathered and utilized for analyzing purposes.

Rank

The position or level of importance of an item or individual within a set or system based on a particular criterion or measure.

Test Statistic T

A type of statistic used in hypothesis testing, specifically in the context of t-tests, to determine if there is a significant difference between two groups.

Normally Distributed

Describes a distribution that is symmetric around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.