Venus Manufacturing Uses a Predetermined Overhead Allocation Rate Based on a Percentage

question 52

Multiple Choice

Venus Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost.At the beginning of the year,it estimated the manufacturing overhead rate to be 20% of the direct labor cost.In the month of June,Venus completed Job 13C and its details are as follows: $$\begin{array} { | l | r | } \hline \text { Direct materials cost } & \$ 6,680 \\\hline \text { Direct labor cost } & \$ 23,000 \\\hline \text { Direct labor hours } & 34 \text { hours } \\\hline \text { Units of product produced } & 250 \\\hline\end{array}$$
What is the total cost incurred for Job 13C?

• A) $31,016
• B) $27,600
• C) $11,280
• D) $34,280

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Definitions:

Inventory Carrying Costs

The total expenses associated with holding inventory, including storage, insurance, taxes, and opportunity costs.

High-Salaried Pilots

Refers to pilots who are compensated with salaries significantly above the average for their profession, often due to specialized skills, experience, or high demand for their services.

Expensive Equipment

High-cost tools, machinery, or hardware required for specific tasks or operations, often implying a significant investment for businesses.

Idle Production Capacity

The unused portion of a company’s production capability at a given time due to lack of demand or inefficiency.