Needham Company Uses a Job-Order Costing System The Company Applies Overhead at 120% of Direct Labor Cost

question 7

Multiple Choice

Needham Company uses a job-order costing system.During the month of September,the company worked on three jobs.The job-order cost sheets for the three jobs contained the following information at the end of September: $$\begin{array} { l r r r } & \text { Job A } & \text { Job B } & \text { Job C } \\\text { Beginning Balances } & \$ 4,000 &\$ 3 , 0 0 0 &\$ 6 , 0 0 0 \\\text { Direct Materials } & 1,000 & 1,600 & 2,000 \\\text { Direct Labor } & 2,400 & 4,600 & 1,800\end{array}$$
The company applies overhead at 120% of direct labor cost.
If Job B was sold for $16,000,what was the amount of gross margin for this job? (Ignore any consideration of underapplied or overapplied overhead.)

• A) $6,800
• B) $5,880
• C) $1,280
• D) $14,720

Comprehend the legal and ethical considerations in the treatment of mental health, including the insanity defense and involuntary commitment.

Understand the stigma associated with mental illness and efforts toward de-stigmatization.

Recognize the role of biological, psychological, and social factors in the development and treatment of mental illnesses.

Explain the differences and characteristics of major mental health disorders.

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Definitions:

Finished Goods

The final products that are completed and ready for sale to customers.

Job-Order Costing

An accounting methodology used to assign manufacturing costs to individual units or batches of production, based on the jobs performed.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products.

Machine-Hours

A measure of production time, referring to the total number of hours machines are operated during a specific period.