Sybil Ltd Uses a Predetermined Overhead Allocation Rate to Allocate

question 84

Multiple Choice

Sybil Ltd uses a predetermined overhead allocation rate to allocate manufacturing overhead costs to jobs.The company recently completed Job 300X.This job used 19 machine hours and 1 direct labour hours.The predetermined overhead allocation rate is calculated to be $50 per machine hour.What is the amount of manufacturing overhead allocated to Job 300X using machine hours as the allocation base?

• A) $950
• B) $900
• C) $50
• D) $1000

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Definitions:

Cash Shortages

Instances when the actual cash available is less than the amount expected or needed.

Cash Overages

Excess of actual cash received over the expected amount, often caused by either errors in transactions or more sales than recorded.

Cash Discounts

Incentives offered by sellers to encourage buyers to pay their bills quickly, usually expressed as a percentage of the invoice amount if paid within a specific period.

Internal Controls

Processes put in place by management to ensure reliability of financial reporting, effective and efficient operations, and compliance with laws and regulations.