Enzo Design Corporation Reports the Following Cost Information for March

question 7

Multiple Choice

Enzo Design Corporation reports the following cost information for March: $$\begin{array} { | l | r | } \hline \text { Cost of Goods Manufactured } & \$ 75,000 \\\hline \text { Finished Goods Inventory, March 1 } & 4000 \\\hline \text { Finished Goods Inventory, March 31 } & 2650 \\\hline \text { Work-in-Process Inventory, March 1 } & 9670 \\\hline \text { Work-in-Process Inventory, March 31 } & 1000 \\\hline \text { Direct Labor } & 36,000 \\\hline \text { Direct Materials Used } & 16,900 \\\hline\end{array}$$ What is the amount of manufacturing overhead incurred by the company in March?

• A) $30,330
• B) $138,570
• C) $13,430
• D) $12,430

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Definitions:

Horizontal Merger

A merger between companies in the same industry, often aiming to increase market share, reduce competition, or achieve economies of scale.

Synergy

The concept that the combined value and performance of two companies will be greater than the sum of the separate individual parts after a merger or acquisition.

Price-Earnings Ratio

A valuation metric for a stock, calculated by dividing the current market price of the stock by its earnings per share.

Incremental Value

The additional or extra value generated by making a specific business decision, considered when evaluating multiple options.