Jewel Company Calculates Its Predetermined Rates Using Practical Volume, Which

question 94

Multiple Choice

Jewel Company calculates its predetermined rates using practical volume, which is 300,000 units. The standard cost system allows two direct labour hours per unit produced. Overhead is applied using direct labour hours. The total budgeted overhead is $3,200,000 of which $900,000 is fixed overhead. The actual results for the year are as follows:
$\begin{array}{ll}\text { Units produced: } & 280,000 \\\text { Direct labour: } & 570,000 \text { hours }@\$ 9 \text { per hour } \\\text { Variable overhead: } & \$ 2,320,000 \\\text { Fixed overhead: } & \$ 872,000\end{array}$
-Refer to the Figure.What is the applied fixed overhead?

• A)$840,000
• B)$855,000
• C)$864,000
• D)$910,000

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Definitions:

Technology Familiarity

The level of comfort and knowledge an individual has with using technology and technological devices.

Special Modification

Tailored changes or adjustments made to a product, service, or system to meet specific needs or requirements.

Project Closeout

The final phase of a project's lifecycle where all activities are completed, and documentation is finalized to officially close the project.

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The establishment and management of agreements between a project team and external vendors or suppliers necessary for acquiring goods or services essential for project completion.