Midtown,Inc

question 55

Multiple Choice

Midtown,Inc.uses a predetermined overhead allocation rate of $67 per direct labor hour.In January,the company completed Job A23 which utilized 18 direct labor hours.Which of the following correctly describes the journal entry to allocate overhead to the job?

• A) debit Finished Goods Inventory $1206 and credit Manufacturing Overhead $1206
• B) debit Manufacturing Overhead $67 and credit Work-in-Process Inventory $67
• C) debit Work-in-Process Inventory $1206 and credit Manufacturing Overhead $1206
• D) debit Cost of Goods Sold $67 and credit Finished Goods Inventory $67

---

Definitions:

Strategic Management

The method of creating, executing, and assessing interdisciplinary decisions that help an organization fulfill its goals.

Just-in-time Scheduling

A production strategy that reduces inventory costs by receiving goods only as they are needed for the production process.

Economic Order Quantity

Is a model used in inventory management to determine the optimal order size that minimizes the total holding costs and ordering costs.

Management by Objectives

Management by objectives is a strategic management model where goals are defined for each employee and performance is assessed based on these goals.