Answer the Following Questions Using the Information Below:
Comfort Manufacturing

question 157

Multiple Choice

Answer the following questions using the information below:
Comfort Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winton High School band jacket job.
$\begin{array}{llc}&\text { Company }&\text { Winton High School Job }\\\text { Direct materials } & \$ 40,000 & \$ 2,000 \\\text { Direct labor } & \$ 10,000 & \$ 400 \\\text { Manufacturing overhead costs } & \$ 45,000 & \\\text { Machine-hours } & 100,000 \mathrm{mh} & 900 \mathrm{mh}\end{array}$
-What amount of manufacturing overhead costs will be allocated to this job?

• A) $405
• B) $425
• C) $270
• D) $465

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Definitions:

Maturity Value

Maturity Value is the amount to be paid to the holder of a financial instrument at its maturity date, including the principal and any remaining interest.

Notes Receivable (New)

Financial assets representing written promises for payments to be received by a party, usually including interest.

Notes Receivable (Old)

Financial assets representing amounts due to be received from debtors under formal agreements or promissory notes that are no longer current.

Interest Income

Income earned from investing in interest-bearing financial instruments, such as bonds, savings accounts, or loans.