Answer the Following Questions Using the Information Below:
Apple Valley

question 56

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.
-Manufacturing overhead costs allocated to Job #432 total ________.

• A) $30,000
• B) $12,000
• C) $24,000
• D) $36,000

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Definitions:

Aggregate Demand

The total demand for all goods and services within a particular market or economy, including consumption, investment, government spending, and net exports.

Inflation

The velocity at which the total cost of products and services surges, reducing purchasing capacity.

Unemployment

The situation of being without a job, while actively looking for one and willing to work.

Short-Run Phillips

A concept that shows an inverse relationship between the rate of unemployment and the rate of inflation in an economy over a short period of time.