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:

Normal Curve

A symmetrical, bell-shaped curve that describes the distribution of many types of data where most of the observations cluster around the mean.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how much the values differ from the mean of the set.

Scatterplot

A graphed cluster of dots, each of which represents the values of two variables. The slope of the points suggests the direction of the relationship between the two variables. The amount of scatter suggests the strength of the correlation (little scatter indicates high correlation).

Normal Curve

A bell-shaped curve that represents the distribution of many types of data where most values are close to the mean.