Use the Information Below to Answer the Following Question(s)

question 295

Multiple Choice

Use the information below to answer the following question(s) .
Addison Company uses a job costing system. Addison Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31.
Manufacturing overhead cost is allocated at the rate of $10 per direct labour hour. Actual manufacturing overhead costs for August amount to $42,000.
-What is the amount of allocated manufacturing overhead costs for August at Addison Company?

• A) $101,000
• B) $60,000
• C) $32,000
• D) $80,000

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Definitions:

Controllable Fixed Costs

Expenses that can be managed or influenced by decisions made by a company's management, such as advertising expenditures.

Operating Assets

Assets used by a business in its day-to-day operations to generate revenue.

Controllable Margin

A financial metric that represents the amount of profit or contribution margin that management can directly influence through its decisions.

Operating Assets

Assets that a business uses for its day-to-day operational activities to generate revenue, excluding investment and non-operational assets.