Barenz Builders Had the Following Information Available for the Past

question 101

Multiple Choice

Barenz Builders had the following information available for the past twelve months:
$\begin{array}{ll}\text { Budgeted factory overhead costs }&\$80,000\\\text { Actual factory overhead costs }&\$82,000\\\text { Budgeted direct labor hours } & 40,000 \\\text { Actural direct labor hours } &39,500\end{array}$
Assume the cost driver for factory overhead costs is machine hours and a job uses 10,000 machine hours.The job was budgeted to use 11,000 machine hours.What amount of factory overhead is applied to the job?

• A) $20,000
• B) $20,250
• C) $22,000
• D) $22,278

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Definitions:

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Legal Formalities

The required procedures or steps mandated by law for ensuring that legal acts or documents are valid and enforceable.

Officers

Individuals appointed or elected to oversee the management and daily operations of a corporation or other entity, typically holding positions such as CEO, CFO, or President.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, entering into contracts, and being sued.