Ajax Company Accumulated the Following Account Information for the Year

question 93

Multiple Choice

Ajax Company accumulated the following account information for the year:
$\begin{array}{ll}\text { Beginning raw materials inventory } & \$ 6,000 \\\text { Indirect materials cost } & 2,000 \\\text { Indirect labor cost } & 5,000 \\\text { Maintenance of factory equipment } & 2,800 \\\text { Direct labor cost } & 7,000\end{array}$
Using the above information,total factory overhead costs would be:

• A) $9,800
• B) $16,800
• C) $15,800
• D) $13,000
• E) $7,800

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Definitions:

Same Day Value

Financial transactions that are settled on the same day they are initiated.

Concentrator Account

A single centralized bank account that consolidates funds from various sources for the purpose of streamlined management.

Trustee Account

A type of account managed by a trustee who holds assets for the benefit of another party, ensuring the assets are managed in the beneficiary's best interest.

Short-term Securities

Financial instruments that are typically debt securities with maturities of one year or less, used for short-term financing needs.