Tiscara Company Manufactures Insulation and Applies Manufacturing Overhead Costs to Production

question 187

Multiple Choice

Tiscara Company manufactures insulation and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $15 per direct labor-hour.The following data are obtained from the accounting records for June 2014: $\begin{array}{lr}\text { Direct materials } & \$ 440,000 \\\text { Direct labor }(3,500 \text { hours @ } \$ 11 / \text { hour) } & 38,500 \\\text { Indirect labor } & 15,000 \\\text { Plant facility rent } & 50,000 \\\text { Depreciation on plant machinery and equipment } & 35,000 \\\text { Sales commissions } & 10,000 \\\text { Administrative expenses } & 25,000\end{array}$ The actual amount of manufacturing overhead costs incurred in June 2014 totals ________.

• A) $278,500
• B) $100,000
• C) $80,000
• D) $110,000

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Definitions:

Cardiac Muscle

Muscle tissue found only in the heart, characterized by its ability to contract involuntarily and rhythmically.

Tetanic Contractions

Sustained muscle contractions that occur when the muscles do not relax between stimuli, leading to a smooth and steady contraction.

Depolarization

The process in which a cell's membrane potential becomes less negative, leading towards an action potential in nerve and muscle cells.

Heart Rate

is the number of heartbeats per unit of time, usually per minute, indicating cardiovascular fitness and overall health.